NU Online News Service, Aug. 7, 2003, 12:08 p.m. EDT – Scottish Annuity & Life Holdings Ltd., Hamilton, Bermuda, coped with the continuing decline in interest rates during the first half by realigning its core investment portfolio.

Scottish Annuity, which sells life reinsurance and also sells niche life products aimed at wealthy families, is reporting $7.9 million in net income for the second quarter on $130 million in revenue, up from $7.8 million in net income on $64 million in revenue for the second quarter of 2002.

The company notes that it held the average yield of its core investment portfolio steady at 4.9% during the second quarter by shifting to debt securities with longer maturities.

The notes, bonds and other debt securities in the portfolio ended the second quarter with an average effective duration of 3.5 years, up from three years at the end of 2002.

Scottish Annuity also let the average quality of the portfolio fall to A plus, from AA minus.