8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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                                    FORM 8-K



                                 CURRENT REPORT
                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

          Date of Report (Date of earliest event reported): May 4, 2006

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                            SCOTTISH RE GROUP LIMITED
             (Exact name of registrant as specified in its charter)

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       Cayman Islands                   001-16855                 98-0362785
(State or Other Jurisdiction     (Commission File Number)     (I.R.S. Employer
      of Incorporation)                                      Identification No.)


              P.O. Box HM 2939
Crown House, Third Floor, 4 Par-la-Ville Road
                Hamilton HM12
                   Bermuda                                        N/A
  (Address of Principal Executive Offices)                    (Zip Code)

                                 (441) 295-4451
               Registrant's telephone number, including area code

                                       N/A
          (Former name or former address, if changed since last report)

        Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17
    CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
    240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

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Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.


     On May 4, 2006, Tartan Capital Limited ("Tartan Capital"), a special
purpose exempted company incorporated in the Cayman Islands, whose issued
ordinary shares are held by a share trustee and its nominees in trust for
charitable purposes, issued (i) $75,000,000 in aggregate principal amount of
Class A Guaranteed Variable Rate Notes due January 7, 2009 (the "Class A Notes")
and (ii) $80,000,000 in aggregate principal amount of Class B Principal-at-Risk
Variable Rate Notes due January 7, 2009 (the "Class B Notes," and together with
the Class A Notes, the "Notes") in a private offering. Proceeds from the
issuance of the Notes were deposited in an account (the "Collateral Account") to
satisfy Tartan Capital's obligations under the Counterparty Contract (as defined
below). The timely payment of scheduled interest payments under the Class A
Notes and the ultimate repayment of principal of such Class A Notes are insured
by Financial Guaranty Insurance Company ("FGIC") through an insurance policy.
The Class B Notes are not guaranteed by FGIC. FGIC will not guarantee the
payment of any redemption premium, the early repayment of principal on the Class
A Notes, taxes or shortfalls for withholding taxes. The Notes are direct
financial obligations of Tartan Capital, and none of Scottish Annuity & Life
Insurance Company (Cayman) Ltd. ("SALIC"), an indirect wholly owned subsidiary
of Scottish Re Group Limited (the "Company"), the Company or any of their
affiliates is an obligor or guarantor on the Notes.

     Tartan Capital was formed as a special purpose vehicle for the purpose of
entering into and performing a counterparty contract (the "Counterparty
Contract") between it and SALIC, pursuant to which Tartan Capital is obligated
to make certain payments to SALIC if there are increases in population mortality
in the United States that exceed certain thresholds ("Trigger Events"). Pursuant
to the Counterparty Contract, SALIC is obligated to make payments (the
"Counterparty Payments") to Tartan Capital equal to the amount of (i) interest
on the Notes, (ii) the swap spread to the Swap Counterparty (as defined below)
and (iii) the insurance premium to be paid to FGIC.

     The annual interest rate on the Notes will equal the 3-month London
Interbank Offered Rate ("LIBOR"), plus a spread. The Class A Notes and Class B
Notes bear interest at a rate equal to the 3-month LIBOR plus 0.19% and 3.0% per
year, respectively. Such interest will be payable quarterly in arrears on each
January 7, April 7, July 7 and October 7 (each a "Scheduled Payment Date"), for
each period beginning on (and including) May 4, 2006, and each succeeding
Scheduled Payment Date, and ending on (but excluding) the next succeeding
Scheduled Payment Date. The outstanding principal amount of the Class B Notes
will be reduced to the extent of any payments by Tartan Capital to SALIC with
respect to the Class B Notes pursuant to the Counterparty Contract.

     If the information required in order to calculate whether a Trigger Event
has occurred is not yet available prior to January 7, 2009 (the "Scheduled
Redemption Date"), the redemption of the Notes may be extended for three-month
periods until such requirements are met, but in no event longer than 30 months
after the Scheduled


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Redemption Date. During such extension period, the annual interest rate on each
class of Notes will equal 3-month LIBOR plus 0.10% per year.

     In connection with the issuance of the Notes, Tartan Capital entered into a
swap transaction with Goldman Sachs International. The primary purposes of the
swap is to (i) convert the interest yield on the investments in the Collateral
Account together with the Counterparty Payments to a rate that is consistent
with the accrual of interest on the Notes and (ii) enable Tartan Capital to
receive the stated principal amount of the investments in the Collateral
Account, regardless of the amounts actually realized upon the sale of such
investments.

     A copy of the press release issued by the Company announcing the above
described transaction is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1    Press Release issued by Scottish Re Group Limited on May 4, 2006.


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                                    SIGNATURE



          Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.



                               SCOTTISH RE GROUP LIMITED


                               By: /s/ Paul Goldean
                                  ---------------------------------------------
                                  Paul Goldean
                                  Executive Vice President and General Counsel



Dated:  May 10, 2006


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                                INDEX TO EXHIBITS

Number     Description

99.1       Press Release issued by Scottish Re Group Limited on May 4, 2006.


                                       5

EX-99.1

Scottish Re Closes $155 Million Mortality Catastrophe Bond

Company Release - 05/04/2006 20:35

HAMILTON, Bermuda--(BUSINESS WIRE)--May 4, 2006--Scottish Re Group Limited
(NYSE:SCT), a global life reinsurance specialist, announced today that its
wholly owned subsidiary Scottish Annuity & Life Insurance Company (Cayman) Ltd.
has entered into a transaction with the special purpose vehicle, Tartan Capital
Limited to receive up to $155 million of payments in the event of severe
population mortality.

Tartan Capital issued $155 million of principal at risk notes to investors to
fund any future obligations it may have. The notes were issued in two classes,
and each class will provide three years of collateralized mortality protection.
The $75 million Class A Notes have been rated Aaa by Moody's and AAA by Standard
& Poor's, based on the issuance of a financial guaranty policy by Financial
Guaranty Insurance Company ("FGIC"). FGIC has guaranteed the timely payment of
interest under the Class A Notes and the ultimate repayment of principal of such
Class A Notes. The $80 million Class B Notes are not guaranteed by the FGIC
policy and have been rated Baa3 by Moody's and BBB by Standard and Poor's.

"Once again, we at Scottish Re have demonstrated our ability to efficiently
utilize the capital markets to fund life insurance risks, this time by
transferring extreme mortality risk to investors as an alternative to
traditional sources of retrocession" said Scott E. Willkomm, President and Chief
Executive Officer of Scottish Re Group Limited.

Tartan Capital's risk coverage is based on a combined mortality index, which is
defined over a consecutive 2 year period and based on age and gender weighted
death rates for the United States constructed from publicly available data
sources. The principal of the notes are at risk if, during a measurement period,
the combined mortality index exceeds predefined percentages of the expected
mortality level (115% for Class A Notes, 110% for Class B Notes). Tartan Capital
is designed with a shelf structure to enable potential future issuances up to a
total of $300 million.

Goldman Sachs was the lead book-runner for the transaction and Scottish Re
Capital Markets and Credit Suisse acted as co-managers. The notes sold are not
registered under the Securities Act of 1933, as amended, and may not be resold
in the United States without registration or an applicable exemption from the
registration requirements.

About Scottish Re

Scottish Re Group Limited is a global life reinsurance specialist. Scottish Re
has operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland,
Grand Cayman, and Windsor, England. Its flagship operating subsidiaries include
Scottish Annuity & Life Insurance company (Cayman) Ltd. and Scottish Re (U.S.),
Inc., which are rated A- (excellent) by A.M. Best, A (strong) by Fitch Ratings,
A3 (good) by Moody's and A- (strong) by Standard & Poor's, Scottish Re Limited,
which is rated A- (excellent) by A.M. Best, A (strong) by Fitch Ratings and A-
(strong) by Standard & Poor's and Scottish Re Life Corporation, which is rated
A- (excellent) by A.M. Best Company. Scottish Re Capital Markets, Inc., a member
of Scottish Re Group Limited, is a registered broker dealer that specializes in
securitization of life insurance assets and liabilities. Additional information
about Scottish Re Group Limited can be obtained from its Web site,
www.scottishre.com.


    CONTACT: Scottish Re Group Limited
             Michael Baumstein, 441-298-4394
             michael.baumstein@scottishre.comwww.scottishre.com

    SOURCE: Scottish Re Group Limited