NU Online News Service, Oct. 26, 1:13 p.m. – Annuity and Life Re (Holdings) Ltd., Hamilton, Bermuda, a 3-year-old life reinsurer with $2.3 billion in assets, is reporting a $39 million net loss for the third quarter on $98 million in revenue, compared with $11 million in net income on $69 million in revenue for the third quarter of 2000.
The results include $12 million in costs related to the Sept. 11 attacks, but they also include a $10 million charge due to higher-than-expected death rates on a life reinsurance contract written in 1998, and a $25 million write-down of deferred acquisition costs for the annuity business, Annuity and Life says.
“With respected to the write off of deferred acquisition costs, management intends to pursue a appropriate action to cover damages from the ceding company,” Annuity and Life says.
Annuity and Life did not immediately identify the ceding company.
Annuity and Life notes that it completed 15 new reinsurance contracts in the third quarter, up from eight in the comparable quarter in 2000.