NU Online News Service, Feb. 12, 2:19 p.m. – Annuity and Life Re (Holdings) Ltd., Hamilton, Bermuda, is reporting a $25 million net loss for the fourth quarter of 2001 on $99 million in revenue, compared with $46 million in net income on $111 million in revenue for the fourth quarter of 2000.
Annuity and Life Re reinsures life insurance and annuity policies, and it has one very large annuity arrangement with an insurer and reinsurer whose names it has not yet disclosed. Net results for the latest quarter include $33 million in costs related to the minimum interest rate guarantees on the large annuity contract, the company says.
“With respect to the annuity reinsurance contract, management is pursuing appropriate action to recover damages from the ceding company, another reinsurer,” the company says.
Life insurance in force increased to $117 million, from $77 million, and the number of major new life reinsurance contracts increased to 16, from 11, the company says.
Annuity reserves fell to $1.5 billion, from $1.6 billion.