ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars)
June 30, 2005 December 31, 2004
Assets (unaudited)
Cash and cash equivalents $33,637,082 $56,394,484
Fixed income investments
at fair value (amortized
cost of $62,085,120 and
$80,767,893 at June 30,
2005 and December 31, 2004) 62,750,761 82,034,410
Funds withheld at interest 53,305,982 56,415,386
Accrued investment income 870,796 1,155,762
Receivable for investments sold 309,525 -
Receivable for reinsurance ceded 77,982,650 82,433,270
Other reinsurance receivables 2,711,210 4,306,931
Deferred policy acquisition costs 5,683,172 6,084,488
Other assets 585,984 580,625
Total Assets $237,837,162 $289,405,356
Liabilities
Reserves for future
policy benefits $106,589,798 $109,860,843
Interest sensitive contracts
liability 53,810,806 57,754,009
Other reinsurance liabilities 10,471,084 49,186,297
Accounts payable and accrued
expenses 1,949,337 6,186,995
Total Liabilities 172,821,025 222,988,144
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;
26,316,861 and 26,338,528
shares issued and outstanding
at June 30, 2005 and December 31,
2004) 26,316,861 26,338,528
Additional paid-in capital 333,797,708 333,810,766
Stock warrants 1,350,000 1,350,000
Unamortized stock-based
compensation (205,550) (490,415)
Accumulated other comprehensive
income 673,675 1,016,260
Accumulated deficit (296,916,557) (295,607,927)
Total Stockholders' Equity 65,016,137 66,417,212
Total Liabilities and
Stockholders' Equity $237,837,162 $289,405,356
ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in U.S. dollars)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
2005 2004 2005 2004
Revenues
Net premiums $2,927,917 $10,348,881 $8,416,183 $24,659,522
Investment
income, net
of related
expenses 1,609,615 3,844,066 3,275,624 13,094,801
Net realized
investment
gains (6) (137,885) 401,144 541,040
Net change in
fair value of
embedded
derivatives (35,736) 518,786 451,409 1,126,174
Surrender fees
and other
revenues 30,677 1,510,568 61,313 2,585,500
Total Revenues 4,532,467 16,084,416 12,605,673 42,007,037
Benefits and Expenses
Claims and Policy
benefits 1,587,086 8,769,049 6,189,529 19,013,707
Interest credited
To interest
Sensitive
products 257,075 1,822,643 626,253 5,351,892
Policy
acquisition
costs and
other insurance
expenses 1,008,209 4,654,527 2,364,446 12,835,524
Operating
expenses 2,220,065 7,268,575 4,734,076 10,035,937
Total Benefits
and Expenses 5,072,435 22,514,794 13,914,304 47,237,060
Loss before
cumulative
effect of a
change in
accounting
principle $(539,968) $(6,430,378) (1,308,631) (5,230,023)
Cumulative
effect of a
change in
accounting
principle - - - (365,960)
Net Loss $(539,968) $(6,430,378) $(1,308,631) $(5,595,983)
Loss before cumulative
effect of a change in
accounting principle
per common share
Basic $(0.02) $(0.25) $(0.05) $(0.21)
Diluted $(0.02) $(0.25) $(0.05) $(0.21)
Cumulative effect of a
change in accounting
principle per common
share
Basic $- $- $- $(0.01)
Diluted $- $- $- $(0.01)
Net loss per common
share
Basic $(0.02) $(0.25) $(0.05) $(0.22)
Diluted $(0.02) $(0.25) $(0.05) $(0.22)
ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONSOLIDATED STATEMENTS OF SEGMENT INCOME (LOSS)
(Unaudited and in U.S. dollars)
Three Months
Ending June
30, 2005 Life Annuity
Reinsurance Reinsurance Corporate Consolidated
Revenues $3,314,514 $644,128 $573,825 $4,532,467
Benefits and
expenses 2,363,635 686,340 2,022,460 5,072,435
Segment
Income(Loss) $950,879 $(42,212) $(1,448,635) $(539,968)
Total
Assets $121,460,882 $55,510,806 $60,865,474 $237,837,162
Fully Diluted
Earnings per
Share $0.04 $(0.00) $(0.06) $(0.02)
Three Months
Ending June 30,
2004
Revenues $10,515,041 $5,002,269 $567,106 $16,084,416
Benefits and
expenses 9,780,675 6,215,881 6,518,238 22,514,794
Segment
Income(Loss) $734,366 $(1,213,611) $(5,951,132) $(6,430,378)
Total
Assets $220,280,815 $666,102,422 $86,128,401 $972,511,638
Fully Diluted
Earnings per
Share $0.03 $(0.05) $(0.23) $(0.25)
Six Months Ending
June 30, 2005
Revenues $9,282,433 $1,837,937 $1,485,303 $12,605,673
Benefits and
expenses 8,151,872 1,442,989 4,319,443 13,914,304
Segment Income
(Loss) $1,130,561 $394,948 $(2,834,140) $(1,308,631)
Total
Assets $121,460,882 $55,510,806 $60,865,474 $237,837,162
Fully Diluted
Earnings per
Share $0.04 $0.02 $(0.11) $(0.05)
Book Value per
share $2.47
Six Months Ending
June 30, 2004
Revenues $25,130,541 $14,922,344 $1,954,152 $42,007,037
Benefits
and
expenses 24,221,596 14,802,342 8,213,123 47,237,060
Segment
Income
(Loss) $908,946 $120,002 $(6,258,971) $(5,230,023)
Cumulative
Change
due to SOP
03-1
Adoption - (365,960) - $(365,960)
Segment
Income
(Loss) $908,946 $(245,958) $(6,258,971) $(5,595,983)
Total
Assets $220,280,815 $666,102,422 $86,128,401 $972,511,638
Fully
Diluted
Earnings
per Share $0.04 $(0.02) $(0.24) $(0.22)
Book Value
per share $4.81