A Hamilton, Bermuda, life reinsurer says accounting concerns will delay the filing of its official annual report with the U.S. Securities and Exchange Commission.[@@]
The reinsurer, Scottish Re Group Ltd., says in a notice filed with the SEC that the delays are the result of accountants’ efforts to “perform additional internal procedures regarding the company’s determination of a material weakness in its U.K. subsidiary.”
“The company does not anticipate any significant change in the results of operations for the quarter and fiscal year ended Dec. 31, 2004, from that reported in its earnings press release on Feb. 17, 2005,” the company says in a statement about the delay.
Analysts at A.G. Edwards & Sons Inc., St. Louis, say Scottish Re has been putting extra effort into reviewing the financial statements of World-Wide Reassurance Company, a U.K. subsidiary acquired in 2001. Scottish Re has concerns about its ability to detect problems with World-Wide financial statements because Scottish Re is in the process of converting World-Wide to electronic administration systems from manual administration systems, according to the A.G. Edwards analysts.