August 15, 2002 at 08:00 PM
NU Online News Service, Aug. 15, 7:30 p.m. – Annuity & Life (Re) Holdings Ltd., Hamilton, Bermuda, is reporting a $20 million net loss for the second quarter on $120 million in revenue, compared with $15 million in net income on $88 million in revenue for the second quarter of 2001.
Annuity & Life Re sells reinsurance for life insurance policies and annuity contracts.
The life reinsurance operation generated $7.1 million in income on $95 million in revenue.
The annuity reinsurance operation lost $30 million on $21 million in revenue because of problems with convertible bonds in a portfolio backing one large annuity reinsurance arrangement, Annuity & Life Re says.
Annuity & Life Re also reports that its auditors have been unable to audit its latest financial statements because of the difficulty of reviewing and revamping its accounting for certain fixed annuity contracts. The company has agreed to a request by a U.S. Securities and Exchange Commission to treat some provisions in the contracts as embedded derivatives.
Company management will certify the second-quarter quarterly report, or Form 10-Q filing, after the audit is completed, the company says.
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