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ANNRF News Research Annuity and Life Re (Holdings) Ltd,Stock Trading Message Board
Annuity & Life Re First Quarter 2005 Earnings Report
HAMILTON, Bermuda - PRNewswire-FirstCall - May 10
HAMILTON, Bermuda, May 10 /PRNewswire-FirstCall/ -- Annuity and Life Re (Holdings), Ltd. (OTC:ANNRF.OB) (BULLETIN BOARD: ANNRF.OB) today reported financial results for the three months ended March 31, 2005. The Company reported a net loss of $(768,665) or $(0.03) per fully diluted share for the three months ended March 31, 2005, as compared to net income of $834,394 or $0.03 per fully diluted share for the three months ended March 31, 2004. Net income for three months ended March 31, 2004, included a charge of $(365,960) or $(0.01) per fully diluted share for the cumulative effect of adopting the AICPA Statement of Position (SOP) 03-1 effective January 1, 2004.
Net realized investment gains for the three months ended March 31, 2005, were $401,150, as compared with net realized investment gains of $678,925 for the three months ended March 31, 2004. The realized gains were the result of the transfer and sale of securities in the Company's investment portfolio to ceding companies in connection with the Transamerica and Met Life recaptures in the three months ended March 31, 2005 and 2004, respectively.
Gross unrealized losses on the Company's investments were ($121,169) as of March 31, 2005, as compared to gross unrealized gains of $1,266,517 at December 31, 2004. The Company's investment portfolio currently maintains an average credit quality of AA. Cash used by operations for the three months ended March 31, 2005, was $37,057,460, as compared to cash used by operations of $36,869,555 for the three months ended March 31, 2004. The cash used by operations during the three months ended March 31, 2005, includes payments made in connection with the termination and recapture of the Transamerica annuity reinsurance agreement and the novation of the Scottish and F&G life reinsurance agreements to Transamerica. Approximately $39,600,000 was paid to Transamerica in connection with the novation and recapture transactions in the three months ended March 31, 2005.
Annuity and Life Re (Holdings), Ltd. provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity and Life Reassurance, Ltd. and Annuity and Life Reassurance America, Inc.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by the Company or on its behalf. All statements, which address operating performance, events, or developments that the Company expects or anticipates may occur in the future, are forward- looking statements. These statements are made on the basis of management's views and assumptions; as a result, there can be no assurance that management's expectations will necessarily come to pass. The Company cautions that actual results could differ materially from those expressed or implied in forward-looking statements. Important factors that could materially and adversely affect the Company's operations and financial condition and/or cause the Company's actual results of operations or financial condition to differ from those expressed or implied in the Company's forward-looking statements include, but are not necessarily limited to, the Company's ability to meet the obligations associated with the Company's current business and to fund the Company's continuing operations; the Company's ability to pursue strategic alternatives on favorable terms; the loss of a key executive; the Company's ability to obtain adequate financial ratings; the ability of the Company's cedents to manage successfully assets they hold on the Company's behalf; the Company's success in managing its investments; the Company's ability to list its common shares on a national exchange or automated quotation system; changes in mortality, morbidity and claims experience; the Company's ability to make accurate estimates and assumptions regarding future mortality, persistency, lapses, expenses and investment performance based upon historical results and information provided to it by its cedents; the Company's ability to underwrite business; unanticipated withdrawal or surrender activity; changes in market conditions, including changes in interest rate levels; the competitive environment; the impact of recent and possible future terrorist attacks and the U.S. government's response thereto; the Company's ability to attract and retain clients; regulatory changes (such as changes in U.S. tax law and insurance regulation that directly affect the competitive environment for the Company's products); and a prolonged economic downturn. Investors are also directed to consider the risks and uncertainties discussed in documents the Company has filed with the Securities and Exchange Commission, and in particular, the Company's Annual Report on Form 10-K for the year ended December 31, 2004. The Company does not undertake to update any forward- looking statement that may be made from time to time by or on the Company's behalf.
This press release and the attached financial statements are available in the "Press Releases" section of the Company's website at http://www.alre.bm/releases_2005.html . Certain financial information that has been made available to financial analysts is available in the "Financial Reports" section of the Company's website at http://www.alre.bm/reports.html .
ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars)
March 31, 2005 December 31, 2004
Assets (Unaudited)
Cash and cash equivalents $36,497,436 $56,394,484
Fixed income investments at fair
value (amortized cost of $63,976,362
and $80,767,893 at March 31, 2005, and
December 31, 2004 63,855,193 82,034,410
Funds withheld at interest 55,902,525 56,415,386
Accrued investment income 840,696 1,155,762
Receivable for reinsurance ceded 79,524,877 82,433,270
Other reinsurance receivables 4,122,913 4,306,931
Deferred policy acquisition costs 5,926,854 6,084,488
Other assets 363,674 580,625
Total Assets $247,034,168 $289,405,356
Liabilities
Reserves for future policy benefits $109,115,788 $109,860,843
Interest sensitive
contracts liability 56,574,414 57,754,009
Other reinsurance liabilities 14,589,434 49,186,297
Accounts payable and accrued expenses 2,096,101 6,186,995
Total Liabilities 182,375,737 222,988,143
Stockholders' Equity
Preferred shares (par value $1.00;
50,000,000 shares authorized;
no shares outstanding) -- --
Common shares (par value $1.00;
100,000,000 shares authorized;
26,338,528 and 26,338,528 shares
outstanding at March 31, 2005,
and December 31, 2004) 26,338,528 26,338,528
Additional paid-in capital 333,807,041 333,810,766
Stock warrants 1,350,000 1,350,000
Unamortized stock-based compensation (346,600) (490,415)
Accumulated other
comprehensive income (113,947) 1,016,260
Accumulated deficit (296,376,591) (295,607,926)
Total Stockholders' Equity 64,658,431 66,417,213
Total Liabilities and
Stockholders' Equity $247,034,168 $289,405,356
ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in U.S. dollars)
For the Three Months Ended March 31,
2005 2004
Revenues
Net premiums $5,488,266 $14,310,641
Investment income, net
of related expenses 1,666,008 9,250,735
Net realized investment gains 401,150 678,925
Net change in fair value
of embedded derivatives 487,145 607,388
Surrender fees and other revenues 30,636 1,074,932
Total Revenues 8,073,205 25,922,621
Benefits and Expenses
Claims and policy benefits 4,602,443 10,244,658
Interest credited to interest
sensitive products 369,178 3,529,250
Policy acquisition costs and
other insurance expenses 1,356,238 8,180,997
Operating expenses 2,514,011 2,767,362
Total Benefits and Expenses 8,841,870 24,722,267
(Loss) income before cumulative
effect of a change in
accounting principle $(768,665) $1,200,354
Cumulative effect of a change
in accounting principle -- (365,960)
Net (Loss) Income $(768,665) $834,394
(Loss) income per common share before
cumulative effect of a change in
accounting principle
Basic $(0.03) $0.04
Diluted $(0.03) $0.04
Cumulative effect of a change in
accounting principle per
common share
Basic $-- $(0.01)
Diluted $-- $(0.01)
Net (loss) income per common share
Basic $(0.03) $0.03
Diluted $(0.03) $0.03
ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONDENSED CONSOLIDATED STATEMENTS OF SEGMENT INCOME (LOSS)
(Unaudited and in U.S. dollars)
Three Months Ended
March 31, 2005
Life Annuity
Reinsurance Reinsurance Corporate Consolidated
Revenues $5,967,919 $1,193,807 $911,478 $8,073,205
Benefits and
Expenses 5,788,237 756,650 2,296,983 8,841,870
Segment Income
(Loss) $179,682 $437,158 $(1,385,505) $(768,665)
Total Assets $128,305,222 $58,374,414 $60,354,532 $247,034,168
Fully Diluted
Earnings
per Share $0.00 $0.02 $(0.05) $(0.03)
Book Value
per share -- -- -- $2.45
Three Months Ended
March 31, 2004
Revenues $14,615,501 $9,920,074 $1,387,046 $25,922,621
Benefits and
Expenses 14,440,920 8,586,461 1,694,885 24,722,266
Segment Income
(Loss) $174,580 $1,333,613 $(307,839) $1,200,355
Cumulative effect
of adopting
SOP 03-1 -- (365,960) -- (365,960)
Net Segment
Income (Loss) $174,580 $967,653 $(307,839) $834,395
Total Assets $216,526,756 $702,159,200 $84,886,362 $1,003,572,318
Fully Diluted
Earnings
per Share $0.00 $0.04 $(0.01) $0.03
Book Value
per share -- -- -- $5.18
Annuity and Life Re (Holdings), Ltd.
Web site: http://www.alre.bm/
