-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WRXjVjKcusRew4RbBAJM+/XG2zOArFRAQSzR+cd51BEALMBocQsi3qcNkMGKfH0w EPrQpBP6oQFmI4nGFBTvpw== 0000898080-07-000040.txt : 20070221 0000898080-07-000040.hdr.sgml : 20070221 20070220214006 ACCESSION NUMBER: 0000898080-07-000040 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070221 DATE AS OF CHANGE: 20070220 EFFECTIVENESS DATE: 20070221 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCOTTISH RE GROUP LTD CENTRAL INDEX KEY: 0001064122 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-16855 FILM NUMBER: 07637278 BUSINESS ADDRESS: STREET 1: GRAND PAVILION COMMERCIAL CENTRE STREET 2: 802 WEST BAY RD GEORGE TOWN GRAND CAYMAN CITY: GRAND CAYMAN CAYMAN STATE: E9 ZIP: 00000 BUSINESS PHONE: 3459492800 MAIL ADDRESS: STREET 1: P O BOX HM 2939 CITY: HAMILTON STATE: D0 ZIP: HM MX FORMER COMPANY: FORMER CONFORMED NAME: SCOTTISH LIFE HOLDINGS LTD DATE OF NAME CHANGE: 19980615 DEFA14A 1 formdefa14a.txt FORM DEFA14A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant [X] Filed by a Party other than Registrant [ ] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [ ] Definitive Proxy Statement [X ] Definitive Additional Materials [ ] Soliciting Material Pursuant to ss. 240.14a-12 SCOTTISH RE GROUP LIMITED ------------------------- (Name of Registrant as Specified in Its Charter) Not Applicable (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant) Payment of Filing Fee (Check the appropriate box): [X ] No fee required [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11 1. Title of each class of securities to which transaction applies: 2. Aggregate number of securities to which transaction applies: 3. Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): 4. Proposed maximum aggregate value of transaction: 5. Total fee paid: [ ] Fee paid previously with preliminary materials: [ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing. 1. Amount previously paid: 2. Form, Schedule or Registration Statement No.: 3. Filing Party: 4. Date Filed: Scottish Re Group Limited Announces Operating Results for the Fourth Quarter and Year Ended December 31, 2006 HAMILTON, Bermuda, Feb. 20 /PRNewswire-FirstCall/ -- Scottish Re Group Limited (NYSE: SCT) today reported that the net loss available to ordinary shareholders for the three months ended December 31, 2006 was $233.8 million, or a loss of $3.86 per diluted ordinary share, as compared to net income available to ordinary shareholders of $58.5 million, or $1.18 per diluted ordinary share for the prior year period. The net loss available to ordinary shareholders for the year ended December 31, 2006 was $376.7 million, or a loss of $6.70 per diluted ordinary share, as compared to net income available to ordinary shareholders of $125.4 million, or $2.64 per diluted ordinary share for the prior year. The net operating loss available to ordinary shareholders for the three months ended December 31, 2006 was $228.4 million, or a loss of $3.77 per diluted ordinary share, as compared to net operating earnings of $50.8 million, or $1.03 per diluted ordinary share for the prior year period. The net operating loss available to ordinary shareholders for the year ended December 31, 2006 was $368.3 million, or a loss of $6.56 per diluted ordinary share, as compared to net operating earnings of $130.1 million, or $2.74 per diluted ordinary share for the prior year. "We are disappointed with the results for the quarter, but are pleased with our ability to maintain our business throughout this very difficult period. Although the consequences of the rating downgrades have continued to impact our operating results, we are confident that the proposed transaction with MassMutual Capital and Cerberus (the "Investors") will significantly improve our financial situation and stabilize the Company as we move into the second quarter of 2007," said Paul Goldean, Chief Executive Officer of Scottish Re Group Limited. Mr. Goldean further added, "We have been working closely with the Investors throughout our closing process for the fourth quarter ended December 31, 2006. Due to the operating results for the quarter, combined with the Investors' continued detailed review of our operations, the Investors requested additional protections in our agreement with them. Under the terms of an amendment to the Securities Purchase Agreement unanimously approved by our Board of Directors on February 19, 2007, we have agreed to provide an additional indemnity to the Investors, in an amount not to exceed $68.5 million, with respect to adverse mortality experience in our in-force ING Block (measured over a period of up to three years commencing January 1, 2007). As with the existing indemnification provisions in the Securities Purchase Agreement, we will settle any such indemnification obligation through the adjustment of the number of ordinary shares into which the convertible shares may be converted and all indemnification matters will be submitted to the independent members of our Board of Directors." Mr. Goldean concluded by stating, "I can affirmatively state that MassMutual Capital and Cerberus remain committed to closing the transaction and the amendment noted above is not expected to have any impact on the timing of the closing." In order to provide our shareholders an opportunity to consider the amendment, we will circulate a Supplement to our Proxy Statement containing information about the amendment on or about February 21, 2007 and we intend to adjourn to March 2, 2007 the Extraordinary General Meeting originally planned for February 23, 2007. The Extraordinary General Meeting will be held at the Fairmont Princess Hotel, 76 Pitts Bay Road, Pembroke HM 11, Hamilton Bermuda HM CX at 11 a.m. local time. If you have already sent in a proxy relating to the Extraordinary General Meeting, you do not need to take any additional action if you do not want to change your vote, and your previously provided proxy will be voted at the meeting as you so indicated. The net operating loss for the fourth quarter was primarily attributable to the following factors: 1. 5% higher than expected mortality in our North America Segment of approximately $11.0 million; 2. Unfavorable lapse experience in our North America Segment of approximately $14.0 million; 3. The reversal of an expected recovery from a specific client of approximately $15.0 million due to corrected data from the client; 4. The write-off of goodwill and unrecoverable deferred acquisition costs of approximately $34.0 million and $12.0 million, respectively, related to our International Segment; 5. Tax expense of $118.2 million principally related to a $91.0 million valuation allowance established on deferred tax assets. The valuation allowance resulted from a specific tax planning strategy no longer being available to the Company. The other components of the higher tax expense primarily related to valuation allowance movements on deferred tax assets based on actual results of legal entity statutory income and movements in statutory reserves for the period; and 6. Higher operating expenses, including legal, directors' fees and the relocation of our offices from Windsor to London (approximately $14.0 million in total) plus higher collateral finance facility and interest costs as a result of our rating downgrades and liquidity situation (approximately $8.0 million). Total revenues for the three months ended December 31, 2006 decreased to $668.2 million from $675.0 million for the prior year period, a decrease of 1.0%. Excluding realized gains and losses and the change in value of the embedded derivatives, total revenues for the three months ended December 31, 2006 increased to $675.5 million from $666.0 million for the prior year period, an increase of 1.4%. Total revenues for the year ended December 31, 2006 increased to $2,451.5 million from $2,297.3 million for the prior year, an increase of 6.7%. Excluding realized gains and losses and the change in value of the embedded derivatives, total revenues for the year ended December 31, 2006 increased to $2,473.1 million from $2,302.1 million for the prior year, an increase of 7.4%. Total benefits and expenses increased to $783.0 million for the three months ended December 31, 2006 from $615.8 million for the prior year period, an increase of 27.2%. Total benefits and expenses increased to $2,599.0 million for the year ended December 31, 2006 from $2,183.7 million for the prior year, an increase of 19.0%. The Company's operating expense ratio (which is the ratio of operating expenses to total revenue excluding realized gains and losses and the change in value of embedded derivatives) for the year ended December 31, 2006 was 6.2%, as compared to an operating expense ratio of 5.0% for the prior year. For the three months ended December 31, 2006, the Company had a pre-tax loss of $114.8 million before minority interest as compared to a pre-tax profit of $59.2 million for the prior year period. Income tax expense for the three months ended December 31, 2006 was $118.2 million compared to an income tax benefit of $1.2 million in the same year period. For the year ended December 31, 2006, the Company had a pre-tax loss of $147.5 million before minority interest as compared to a pre-tax profit of $113.6 million for the prior year. Income tax expense for the year ended December 31, 2006 was $220.6 million compared to an income tax benefit of $16.4 million in the prior year. The change in our effective tax rate in the fourth quarter ended December 31, 2006 compared to the prior year is primarily related to valuation allowance movements on deferred tax assets. We look forward to sharing additional information at our scheduled earnings call and additionally, have posted to our Website, http://www.scottishre.com a Financial Data Supplement to add further clarification to our financial results for the quarter. The Company's earnings listen-only conference call will be held at 8:30 am (EST) on Wednesday, February 21, 2007. The dial-in number is (888) 603-6873 (U.S.) or (973) 582-2706 (International) and the passcode is 8375492. The conference call will also be broadcast live via audio Webcast, which will be available on the home page of the Company's Website at http://www.scottishre.com. Following the earnings conference call, a replay of the call will be available for two weeks beginning at 10:30 am (EST) on Wednesday, February 21, 2007, and ending on Tuesday, March 6, 2007. The dial-in number for the call replay is (877) 519-4471 (U.S.) or (973) 341-3080 (International) and the passcode is 8375492. An audio Webcast of the call will be archived and available for the same period on the Company's Website at http://www.scottishre.com. About Scottish Re Scottish Re Group Limited is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, Singapore, the United Kingdom and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (U.S.), Inc. and Scottish Re Limited. Additional information about Scottish Re Group Limited can be obtained from its Website, http://www.scottishre.com. Certain statements included herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from the forward- looking statements. Management of the Company cautions that these forward- looking statements are not guarantees of our future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements. Important events that could cause the actual results of operations or financial condition of the Company to differ include, but are not necessarily limited to: * our ability to consummate the close of the MassMutual Capital and Cerberus transaction (including obtaining necessary regulatory approvals and shareholder approval) and realize the benefits of such transaction; * impact on our financial condition of the failure to complete the close of the MassMutual Capital and Cerberus transaction; * the validity of assumptions and methodologies used by management in analyzing potential run-off scenarios and in predicting our further capital and liquidity needs and the inability to predict with certainty any future scenarios; * uncertainties relating to the ratings accorded to us and our insurance subsidiaries; * uncertainties in our ability to raise equity capital or other sources of funding to support ongoing capital and liquidity needs; * uncertainties relating to future actions that may be taken by creditors, regulators and ceding insurers relating to our ratings and financial condition; * the risk that our risk analysis and underwriting may be inadequate; * changes in expectations regarding future realization of gross deferred tax assets; * exposure to mortality experience which differs from our assumptions; * risks arising from our investment strategy, including risks related to the market value of our investments, fluctuations in interest rates and our need for liquidity; * uncertainties arising from control of our invested assets by third parties; * developments in global financial markets that could affect our investment portfolio and fee income; * changes in the rate of policyholder withdrawals or recapture of reinsurance treaties; * the risk that our retrocessionaires may not honor their obligations to us; * terrorist attacks on the United States and the impact of such attacks on the economy in general and on our business in particular; * political and economic risks in developing countries; * the impact of acquisitions, including our ability to successfully integrate acquired businesses, the competing demands for our capital and the risk of undisclosed liabilities; * risk that an ownership change will result in a limitation on our ability to fully utilize tax net operating losses; * loss of the services of any of our key employees; * losses due to foreign currency exchange rate fluctuations; * uncertainties relating to government and regulatory policies (such as subjecting us to insurance regulation or taxation in additional jurisdictions); * risks relating to recent class action litigations; * the competitive environment in which we operate and associated pricing pressures; and * changes in accounting principles. Investors are also directed to consider the risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. Scottish Re Group Limited Financial Highlights (Stated in Thousands of United States Dollars, Except Share Data) Three months ended Year ended December 31 December 31 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Audited) Total revenue $668,207 $674,980 $2,451,500 $2,297,329 Net operating earnings (loss) available to ordinary shareholders* (228,371) 50,778 (368,348) 130,058 Net income (loss) (231,558) 60,776 (366,714) 130,197 Net income (loss) available to ordinary shareholders (233,823) 58,510 (376,657) 125,439 Net operating earnings (loss) per ordinary share Basic $(3.77) $1.10 $(6.56) $2.97 Diluted $(3.77) $1.03 $(6.56) $2.74 Earnings (loss) per ordinary share Basic $(3.86) $1.26 $(6.70) $2.86 Diluted $(3.86) $1.18 $(6.70) $2.64 Dividends declared per ordinary share $0.00 $0.05 $0.10 $0.20 Weighted average ordinary shares outstanding Basic 60,554,104 46,312,567 56,182,222 43,838,261 Diluted 60,554,104 49,450,464 56,182,222 47,531,116 * Excludes the effects of net realized capital gains and losses and the change in value of embedded derivatives, as adjusted for the related effects upon the amortization of deferred acquisition costs, and taxes related to these items as well as dividends on the perpetual preferred shares and imputed dividend on prepaid variable share forward contract. December 31, December 31, 2006 2005 Book value per ordinary share $15.39 $21.48 Basic book value per ordinary share - excluding other comprehensive income and value of embedded derivatives $15.50 $21.89 Fully converted book value per ordinary share - excluding other comprehensive income and value of embedded derivatives $15.78 $21.17 Scottish Re Group Limited Consolidated Balance Sheets (Stated in Thousands of United States Dollars, Except Share Data) December 31, December 31, 2006 2005 (Unaudited) (Audited) Assets Fixed maturity investments $8,065,524 $5,292,595 Preferred stock 116,933 133,804 Cash and cash equivalents 622,756 1,420,205 Other investments 65,448 54,619 Funds withheld at interest 1,942,079 2,597,416 Total investments 10,812,740 9,498,639 Accrued interest receivable 57,538 44,012 Reinsurance balances and risk fees receivable 481,908 426,838 Deferred acquisition costs 618,737 594,583 Amounts recoverable from reinsurers 554,589 560,005 Present value of in-force business 48,779 54,743 Goodwill - 34,125 Other assets 178,311 87,198 Deferred tax assets - 55,453 Segregated assets 683,470 760,707 Total assets $13,436,072 $12,116,303 Liabilities Reserves for future policy benefits $3,919,901 $3,526,220 Interest sensitive contract liabilities 3,399,410 3,907,573 Collateral finance facilities 3,757,435 1,985,681 Accounts payable and other liabilities 95,260 83,130 Reinsurance balances payable 72,304 175,263 Current income tax payable 48 9,155 Deferred tax liability 169,977 - Long term debt 129,500 244,500 Segregated liabilities 683,470 760,707 Total liabilities 12,227,305 10,692,229 Minority interest 7,910 9,305 Mezzanine equity 143,665 143,057 Shareholders' equity Ordinary shares, par value $0.01 per share: Issued 60,554,104 shares (2005 - 53,391,939) 606 534 Preferred shares, par value $0.01 per share: Issued: 5,000,000 shares (2005 - 5,000,000) 125,000 125,000 Additional paid-in capital 1,050,860 893,767 Accumulated other comprehensive income (loss) 340 (9,991) Retained (deficit) earnings (119,614) 262,402 Total shareholders' equity 1,057,192 1,271,712 Total liabilities, minority interest, mezzanine equity and shareholders' equity $13,436,072 $12,116,303 Scottish Re Group Limited Consolidated Statements of Income (Loss) (Stated in Thousands of United States Dollars) Three months ended Year ended December 31 December 31 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues Premiums earned $494,501 $563,263 $1,841,985 $1,933,930 Investment income, net 177,217 99,672 616,624 355,837 Fee income 3,741 3,106 14,493 12,316 Realized gains (losses) (1,434) (1,835) (27,405) 3,738 Change in value of embedded derivatives, net (5,818) 10,774 5,803 (8,492) Total revenues 668,207 674,980 2,451,500 2,297,329 Benefits and expenses Claims and other policy benefits 467,195 411,612 1,591,472 1,442,505 Interest credited to interest sensitive contract liabilities 32,444 33,879 172,967 132,968 Acquisition costs and other insurance expenses, net 130,541 118,425 409,185 423,775 Operating expenses 42,407 31,595 152,311 115,573 Goodwill impairment 34,125 - 34,125 - Collateral finance facilities expense 70,145 15,675 215,791 48,146 Interest expense 6,175 4,641 23,139 20,738 Total benefits and expenses 783,032 615,827 2,598,990 2,183,705 Income (loss) before income taxes and minority interest (114,825) 59,153 (147,490) 113,624 Income tax benefit (expense) (118,165) 1,202 (220,592) 16,434 Income (loss) before minority interest (232,990) 60,355 (368,082) 130,058 Minority interest 1,432 421 1,368 139 Net income (loss) (231,558) 60,776 (366,714) 130,197 Dividends declared on non-cumulative preferred shares (2,265) (2,266) (9,062) (4,758) Imputed dividend on prepaid variable share forward contract - - (881) - Net income (loss) available to ordinary shareholders $(233,823) $58,510 $(376,657) $125,439 Scottish Re Group Limited Supplemental Information - Net Operating Earnings (Loss) (Stated in Thousands of United States Dollars, Except Share Data) "Net operating earnings (loss) available to ordinary shareholders" is a non-GAAP measurement. The Company determines net operating earnings (loss) available to ordinary shareholders by adjusting net income (loss) available to ordinary shareholders by net realized capital gains and losses and the change in value of embedded derivatives, as adjusted for the related effects upon the amortization of deferred acquisition costs and taxes. While these items may be significant components in understanding and assessing the Company's consolidated financial performance, the Company believes that the presentation of net operating earnings (loss) available to ordinary shareholders enhances the understanding of its results of operations by highlighting earnings attributable to the normal, recurring operation of its reinsurance business. However, net operating earnings (loss) available to ordinary shareholders is not a substitute for net income (loss) determined in accordance with GAAP. Reconciliations to net income (loss) available to ordinary shareholders are provided in the following tables. Three months ended Year ended December 31 December 31 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Audited) Net operating earnings (loss) available to ordinary shareholders Net income (loss) available to ordinary shareholders $(233,823) $58,510 $(376,657) $125,439 Realized losses (gains) 1,434 1,835 27,405 (3,738) Change in value of embedded derivatives, net 5,818 (10,774) (5,803) 8,492 Taxes on realized gains (losses) and change in value of embedded derivatives (1,800) 1,207 (13,293) (135) Net operating earnings (loss) available to ordinary shareholders $(228,371) $50,778 $(368,348) $130,058 Net operating earnings (loss) per share available to ordinary shareholders Basic $(3.77) $1.10 $(6.56) $2.97 Diluted $(3.77) $1.03 $(6.56) $2.74 Weighted average number of ordinary shares outstanding Basic 60,554,104 46,312,567 56,182,222 43,838,261 Diluted 60,554,104 49,450,464 56,182,222 47,531,116 Scottish Re Group Limited Supplemental Information - Segment Operating Results (Stated in Thousands of United States Dollars) Life Reinsurance North America Three months ended Year ended December 31 December 31 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues Premiums earned, net $461,065 $541,679 $1,719,239 $1,814,875 Investment income, net 171,783 94,562 584,359 341,539 Fee income 2,975 2,316 11,491 9,233 Realized gains (losses) 182 (2,369) (19,043) 1,121 Change in value of embedded derivatives, net (5,818) 10,774 5,803 (8,492) Total revenues 630,187 646,962 2,301,849 2,158,276 Benefits and expenses Claims and other policy benefits 443,472 397,777 1,490,346 1,365,599 Interest credited to interest sensitive contract liabilities 32,444 33,879 172,967 132,968 Acquisition costs and other insurance expenses, net 104,967 114,025 360,737 400,992 Operating expenses 14,434 13,974 58,133 48,849 Collateral finance facilities expense 64,910 14,630 205,210 43,113 Interest expense 3,027 2,396 11,613 10,823 Total benefits and expenses 663,254 576,681 2,299,006 2,002,344 Income (loss) before income taxes and minority interest $(33,067) $70,281 $2,843 $155,932 Pre tax operating earnings (loss) Pre-tax income (loss) $(33,067) $70,281 $2,843 $155,932 Realized losses (gains) (182) 2,369 19,043 (1,121) Change in value of embedded derivatives, net 5,818 (10,774) (5,803) 8,492 Pre-tax operating earnings (loss) $(27,431) $61,876 $16,083 $163,303 Scottish Re Group Limited Supplemental Information - Segment Operating Results (continued) (Stated in Thousands of United States Dollars) Life Reinsurance International Three months ended Year ended December 31 December 31 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues Premiums earned, net $33,436 $21,584 $122,746 $119,055 Investment income, net 3,618 3,812 24,106 11,488 Realized gains (losses) (691) 760 (11,569) 1,263 Total revenues 36,363 26,156 135,283 131,806 Benefits and expenses Claims and other policy benefits 23,723 13,835 101,126 76,906 Acquisition costs and other insurance expenses, net 18,934 3,891 37,332 20,722 Operating expenses 9,907 5,414 31,236 25,276 Goodwill impairment 33,758 - 33,758 - Total benefits and expenses 86,322 23,140 203,452 122,904 Income (loss) before income taxes $(49,959) $3,016 $(68,169) $8,902 Pre-tax operating earnings (loss) Pre-tax income (loss) $(49,959) $3,016 $(68,169) $8,902 Realized losses (gains) 691 (760) 11,569 (1,263) Pre-tax operating earnings (loss) $(49,268) $2,256 $(56,600) $7,639 Scottish Re Group Limited Supplemental Information - Segment Operating Results (continued) (Stated in Thousands of United States Dollars) Corporate & Other Three months ended Year ended December 31 December 31 2006 2005 2006 2005 (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues Investment income, net $1,816 $1,298 $8,159 $2,810 Fee income 766 790 3,002 3,083 Realized gains (losses) (925) (226) 3,207 1,354 Total revenues 1,657 1,862 14,368 7,247 Benefits and expenses Acquisition costs and other insurance expenses, net 6,640 509 11,116 2,061 Operating expenses 18,066 12,207 62,942 41,448 Goodwill impairment 367 - 367 - Collateral finance facilities expense 5,235 1,045 10,581 5,033 Interest expense 3,148 2,245 11,526 9,915 Total benefits and expenses 33,456 16,006 96,532 58,457 Loss before income taxes $(31,799) $(14,144) $(82,164) $(51,210) Pre-tax operating loss Pre-tax loss $(31,799) $(14,144) $(82,164) $(51,210) Realized losses (gains) 925 226 (3,207) (1,354) Pre-tax operating loss $(30,874) (13,918) $(85,371) $(52,564) Dean E. Miller Scottish Re Group Limited Tel. # (441) 298-4395 dean.miller@scottishre.com SOURCE Scottish Re Group Limited __________ Contact: Dean E. Miller of Scottish Re Group Limited, +1-441-298-4395, dean.miller@scottishre.com -----END PRIVACY-ENHANCED MESSAGE-----