Poor mortality figures led to a sharp drop in second-quarter earnings at Scottish Re Group Ltd.[@@]
Scottish Re, Hamilton, Bermuda, is reporting $1.6 million in net income for the second quarter on $504 million in revenue, compared with $29 million in net income on $267 million in revenue for the second quarter of 2004.
Higher than expected death rates among insureds cut operating income by about $11 million, Scottish Re says.
“We are disappointed by the results in the quarter,” Scottish Re President Scott Willkomm says in a statement accompanying the company’s earnings release. “Unfortunately, a greater than expected number of large claims in North America caused us to miss our earnings expectations for the quarter.”