Bermuda Reinsurers Report Results

“However, we do expect the process to conclude within the next several weeks,” Goldean says.

Andrew Kligerman, a securities analyst at UBS Investment Research, New York, and Saul Martinez, a securities analyst at Bear, Stearns & Company Inc., New York, have published research notes suggesting that Scottish Re seems to be less confident about completing negotiations for a deal than it was a few weeks ago.

Annuity and Life Re notes in its earnings release that it is tied up in arbitration with Transamerica Occidental Life Insurance Company, Los Angeles, a unit of AEGON N.V., The Hague, Netherlands, and also is involved in talks with Scottish Re about problems with a reinsurance arrangement that Annuity and Life Re sold to Scottish Re.

Transamerica wants to require Annuity and Life Re to provide $30 million in security before proceeding with arbitration, Annuity and Life Re says.

Annuity and Life Re is opposing that request, because the requirement would leave the company with just $2 million in unencumbered capital, the company says.

Scottish Re has told Annuity and Life Re that it may have paid Annuity and Life about $10 million too much in premiums and failed to bill the company for about $10 million in claims in 2004 and 2005, Annuity and Life Re says.

Scottish Re has not yet backed these assertions with any specific data, Annuity and Life Re says.