NU Online News Service, April 4, 2003, 11:30 a.m. EST – Annuity and Life Re (Holdings) Ltd., Hamilton, Bermuda, is reporting a $99.9 million net loss for the fourth quarter of 2002 on $113 million in revenue, compared with a net loss of $1.7 million on $108 million in revenue for the fourth quarter of 2001.
The income figures for the latest quarter do not include any reinsurance losses related to the Sept. 11, 2001, terrorist attacks.
The income figures do include at least $25 million in claims, reserve additions and contract valuation adjustments resulting from the effects of the stock market slump on annuity reinsurance contracts.
The figures also include $43 million in unexpected life insurance death claims, Annuity and Life says.
The struggling reinsurer has lost another $35 million on efforts to terminate and restructure unprofitable life and annuity reinsurance contracts.
Jay Burke, the company’s chief executive officer, notes in a statement accompanying the earnings release that the company has had a hard time stabilizing its operations and raising capital.
“We hope that 2003 will be the year we stabilize the company, but we continue to face a number of difficult challenges,” Burke says in the statement. “We are continuing to seek to novate, terminate or negotiate the recapture of additional blocks of business to address our liquidity problems, but there can be no assurance that we will be successful or that our remaining book of business will be profitable.”
Burke emphasizes that the company is continuing to evaluate all “strategic alternatives.”