NU Online News Service, May 16, 2003, 12:48 p.m. EDT – Annuity and Life Re (Holdings) Ltd., Hamilton, Bermuda, is reporting a $52 million net loss for the first quarter on $86 million in revenue, compared with $10 million in net income on $108 million in revenue for the first quarter of 2002.

The struggling life reinsurer is attributing the loss mainly to unexpectedly high life reinsurance claims rates and efforts to terminate and restructure existing life and annuity reinsurance agreements.

But Annuity and Life is reporting $1.7 million in investment gains for the quarter. Gains increased because of the low interest rate environment and the strong credit quality of the company’s investment portfolio, the company says.

Operations appear to be stabilizing, but executives are still looking into “all strategic alternatives,” the company says.