ANNUITY AND LIFE RE
(HOLDINGS), LTD.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(U.S.
dollars)
September 30, 2004 December 31,
2003
Assets (unaudited)
Cash and cash equivalents $56,933,773 $80,068,310
Fixed maturity investments at fair
value (amortized cost of
$81,880,490 and $115,594,199 at
September 30, 2004 and
December 31, 2003) 83,287,548 117,812,445
Funds withheld at interest 596,544,390 667,824,819
Accrued investment income 1,033,470 1,491,170
Receivable for reinsurance ceded 82,627,663 88,480,172
Other reinsurance receivables 3,656,664 4,580,745
Deferred policy acquisition costs 95,787,457 68,942,628
Other assets 752,990
682,050
Total Assets $920,623,955 $1,029,882,339
Liabilities
Reserves for future policy benefits $151,673,217 $161,105,541
Interest-sensitive contracts
liability 621,979,101 670,717,546
Other reinsurance liabilities 15,381,098 55,826,940
Accounts payable and accrued expenses 5,519,109 7,059,733
Total Liabilities 794,552,525 894,709,760
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; 26,395,928 and
26,454,195 shares outstanding
at September 30, 2004 and
December 31, 2003) 26,395,928 26,454,195
Additional paid-in capital 334,041,944 334,418,029
Stock warrants 1,350,000 1,250,000.00
Unamortized stock-based compensation (781,376) (1,509,022)
Accumulated other comprehensive
income 1,038,094
1,840,849
Accumulated deficit (235,973,160) (227,281,472)
Total Stockholders' Equity 126,071,430 135,172,579
Total Liabilities and
Stockholders' Equity $920,623,955 $1,029,882,339
ANNUITY AND LIFE RE
(HOLDINGS), LTD.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited and in
U.S. dollars)
For the Three Months
Ended For the Nine Months Ended
September
30, September 30,
2004 2003 2004 2003
Revenues
Net premiums $9,906,337
$28,657,263 $34,565,859 $148,586,899
Investment income,
net of related
expenses 4,780,211
16,250,225 17,875,012 30,143,651
Net realized
investment (losses)
gains (84,868)
(52,025) 456,172 6,508,019
Net change in fair
value of embedded
derivatives 565,939
2,808,427 1,692,113 14,845,749
Surrender fees and
other revenues 1,024,405
1,667,997 3,609,905 6,061,022
Total Revenues 16,192,024
49,331,887 58,199,061 206,145,340
Benefits and
Expenses
Claims and policy
benefits 5,669,394
19,075,004 24,683,101 178,589,650
Interest credited to
interest-sensitive
products 5,513,653
7,642,151 10,865,545 16,731,452
Policy acquisition
costs and other
insurance expenses 5,693,745 22,796,448
18,529,269 119,928,722
Operating expenses 2,410,937 3,605,189
12,446,874 15,873,678
Total Benefits and
Expenses 19,287,729
53,118,792 66,524,789 331,123,502
Loss before
cumulative effect
of a change in
accounting
principle (3,095,705)
(3,786,905) (8,325,728) (124,978,162)
Cumulative effect of
a change in
accounting
principle --
-- (365,960) --
Net Loss $(3,095,705) $(3,786,905) $(8,691,688) $(124,978,162)
Loss per common
share before
cumulative effect
of a change in
accounting
principle per
common share
Basic $(0.12) $(0.15)
$(0.32) $(4.83)
Diluted $(0.12) $(0.15)
$(0.32) $(4.83)
Cumulative effect of
a change in
accounting
principle per
common share
Basic $- $-
$(0.01) $-
Diluted
$- $- $(0.01) $-
Net loss per common
share
Basic $(0.12) $(0.15)
$(0.33) $(4.83)
Diluted $(0.12) $(0.15)
$(0.33) $(4.83)
ANNUITY AND LIFE RE
(HOLDINGS), LTD.
CONSOLIDATED STATEMENTS OF
SEGMENT INCOME (LOSS)
(Unaudited and in
U.S. dollars)
Life Annuity
Three Months
Ended September
30, 2003 Reinsurance
Reinsurance Corporate Consolidated
Revenues $30,013,563
$19,107,200 $211,124 $49,331,887
Benefits and
Expenses 29,434,795
22,548,719 1,135,278 53,118,792
Segment Income
(Loss) $578,768
$(3,441,519) $(924,154) $(3,786,905)
Total Assets $273,604,371
$730,598,264 $77,216,650 $1,081,419,285
Fully Diluted
Earnings per
Share
$0.02 $(0.13) $(0.04) $(0.15)
Three Months
Ended September
30, 2004
Revenues $10,620,367
$5,026,576 $545,081 $16,192,024
Benefits and
Expenses 8,016,909
9,781,795 1,489,025 19,287,729
Segment Income
(Loss) $2,603,458
$(4,755,219) $(943,944) $(3,095,705)
Total Assets $197,754,315
$642,979,101 $79,890,539 $920,623,955
Fully Diluted
Earnings per
Share $0.10
$(0.18) $(0.04) $(0.12)
Nine Months
Ended September
30, 2003
Revenues $147,690,979
$50,977,130 $7,477,231 $206,145,340
Benefits and
Expenses 231,596,707
95,353,065 4,173,730 331,123,502
Segment (Loss)
Income $(83,905,728) $(44,375,935) $3,303,501
$(124,978,162)
Total Assets $273,604,371
$730,598,264 $77,216,650 $1,081,419,285
Fully Diluted
Earnings per
Share $(3.25)
$(1.71) $0.13 $(4.83)
Book Value per
share $5.39
Nine Months
Ended September
30, 2004
Revenues $35,750,909
$19,948,919 $2,499,233 $58,199,061
Benefits and
Expenses 32,238,504
24,584,137 9,702,148 66,524,789
Segment Income
(Loss) before
cumulative
effect of a
change in
accounting
principle $3,512,405
$(4,635,218) $(7,202,915)
$(8,325,728)
Cumulative
effect of a
change in
accouting
principle --
(365,960) -- (365,960)
Segment Income
(Loss) $3,512,405
$(5,001,178) $(7,202,915)
$(8,691,688)
Total Assets $197,754,315
$642,979,101 $79,890,539 $920,623,955
Fully Diluted
Earnings per
Share $0.13
$(0.19) $(0.27) $(0.33)
Book Value per
share $4.78