NU Online News Service, Nov. 14, 2003, 6:45 p.m. EST – Annuity and Life Re (Holdings) Ltd., Hamilton, Bermuda, says a benefit resulting from the termination of its reinsurance relationships with XL Life, Hamilton, helped it report net income for the third quarter.
The struggling reinsurer is reporting $33,392 in net income for the latest quarter on $49 million in revenue, compared with a net loss of $19 million on $116 million in revenue for the third quarter of 2002.
Revenue for the latest quarter includes $9 million in gains on the break-up of Annuity and Life’s relationships with XL Life, Annuity and Life says.
Annuity and Life is still reducing its expenses and repositioning its investment portfolio, but a unit of Citigroup Inc., New York, that provides large letters of credit has agreed to renew the letters of credit if Annuity and Life can reduce the unit’s unsecured letter-of-credit exposure to $17 million by Nov. 30, according to Jay Burke, Annuity and Life’s chief executive officer.
The exposure stood at $27 million Sept. 30, Burke says.