A big acquisition fed profit growth at Scottish Re Group Ltd., Hamilton, Bermuda, during the second quarter.[@@]
The life reinsurer is reporting $28 million in net income for the latest quarter on $229 million in revenue, up from $7.9 million in net income on $130 million in revenue for the second quarter of 2003.
Scottish Re paid $151 million in December 2003 to acquire 95% of the stock of ERC Life Reinsurance Corp. from an affiliate of General Electric Company, Fairfield, Conn. ERC Life reinsures life and health policies with a face value of $170 billion. Before Scottish Re acquired the unit, it reinsured $105 billion in life business.
The performance of the ERC Life block has been consistent with Scottish Re’s expectations, according to Scottish Re Chairman Michael French.