Scottish Re Group Ltd. says it will be postponing the release of its financial results for the fourth quarter of 2007 and for the full year.
The company is assessing the value of the mortgage-backed securities in its investment portfolio and working with an accounting firm to decide the value of the “other-than-temporary impairment charges” it ought to include in its financial statements, according to Scottish Re, Hamilton, Bermuda.
Earlier this month, Scottish Re said it hoped to complete valuing its holdings by today.
Now, “in light of continuing deterioration in the credit markets and the resulting further declines in the market value of the company’s investment portfolio subsequent to the fiscal year end,” Scottish Re has decided it needs more time to evaluate its holdings, the company says.
“Although the company is currently unable to specify the amount of other-than-temporary impairments to be included in realized investment losses for the fourth quarter of 2007, the company believes that the amounts will significantly exceed those previously reported for prior periods,” Scottish Re says.
Total benefits and expenses were comparable in 2006 and 2007, but investment losses probably cut the 2007 revenue total, and that probably will lead to Scottish Re reporting a bigger net loss, the company says.
“The exact amount of such change cannot be determined at this time,” Scottish Re says.