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Scottish Annuity Reports Lower 4th Quarter Net Income

By Staff Writer

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NU Online News Service, Feb. 13, 2:35 p.m. – Scottish Annuity & Life Holdings Ltd., Hamilton, Bermuda, is reporting $3.7 million in net income for the fourth quarter of 2001 on $42 million in revenue and $2.2 billion in assets, compared with $7 million in net income on $40 million in revenue and $1.2 billion in assets for the fourth quarter of 2000.

The reinsurance company has included $6.6 million in losses on securities issued by affiliates of Enron Corp., Houston, in the net results for the latest quarter.

The latest results also include a $406,000 charge to a decrease in the total returns the company expects to get on investments in asset-backed securities.

Operating earnings, which exclude investment losses and unusual charges, increased to $8.2 million, from $7 million, Scottish Annuity says.

The company ended 2001 providing $35 billion in life reinsurance for 993,000 people, up from $11 billion in life reinsurance and 248,000 lives a year earlier.

The average amount of reinsurance per life fell to $35,000, from $46,000.

The Sept. 11, 2001, attacks resulted in only $750,000 in claims for 2001, but Scottish Annuity notes the claims are enough to increase its 2001 mortality experience to 92% of the expected level, from 83% if the Sept. 11 claims are excluded.