ress release
April 30, 2010, 5:00 p.m. EDT · Recommend · Post:
Scottish Re Posts to its Web Site Financial Statements for the Year Ended December 31, 2009
HAMILTON, Bermuda, Apr 30, 2010 (BUSINESS WIRE) -- Scottish Re Group Limited (Pink Sheets:SKRRF) ("Scottish Re" or the "Company"), announced today that it has posted to its website its consolidated financial statements as of December 31, 2009 and 2008. For the year ended December 31, 2009, Scottish Re reported net income attributable to ordinary shareholders of $2,305 million, or $10.56 per diluted ordinary share, as compared to a net loss attributable to ordinary shareholders of $2,710 million, or ($39.63) per diluted ordinary share, for the prior year period.
The net income attributable to ordinary shareholders for the year ended December 31, 2009 was driven primarily by the following significant one-time items:
-- A pre-tax gain of $704 million associated with the sale to Hannover Ruckversicherung AG of a block of U.S. individual life reinsurance business acquired by the Company from ING in 2004;
-- A $1,150 million gain generated by the de-consolidation of Ballantyne Re plc from the Company's consolidated financial statements; and
-- A $254 million gain on the consolidation of the Stingray funding arrangement following the Company's discounted purchases of a majority of the outstanding Stingray pass-through certificates.
In addition, the Company had net realized and unrealized gains of $243 million resulting from an overall market recovery of fixed maturity investments.
For further discussion on the Company's results, please refer to the "Summary of Results" section in the consolidated financial statements as of December 31, 2009 and 2008, as well as in the Notes thereto, available on the Company's website at www.scottishre.com. Excluding the significant events highlighted above and other items detailed in the "Summary of Results", net income attributable to ordinary shareholders would have resulted in a net loss.
As noted in the Company's consolidated financial statements as of December 31, 2009 and 2008, the Company has corrected an error in its interim consolidated financial statements for the three months ended March 31, 2009 related to the determination of its deferred tax liabilities. The error, which was included in the "Income tax expense" financial statement line on the Company's Consolidated Statements of Income, resulted in a $49.8 million understatement of income tax expense in the first quarter of 2009. Net income attributable to ordinary shareholders for the three months ended March 31, 2009 has been restated to $1,662 million from the previously reported figure of $1,711 million. This restatement is reflected in the unaudited Quarterly Financial Data footnote of the Company's consolidated financial statements as of December 31, 2009 and 2008.
About Scottish Re
Scottish Re Group Limited is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Ireland and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited and Scottish Re (U.S.), Inc. Additional information about Scottish Re Group Limited can be obtained from its website, www.scottishre.com.
SOURCE: Scottish Re Group Limited
Scottish Re
Media and Investor Contact:
Dan Roth, Chief Financial Officer, 441-298-4373
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