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Scottish Re Group Limited Posts to its Web Site Second Quarter 2011 Consolidated Financial Statements and Announces an Update o

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  Published in Business and Finance on Wednesday, August 17th 2011 at 14:11 GMT by Market Wire
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HAMILTON, Bermuda--([ BUSINESS WIRE ])--Scottish Re Group Limited ("Scottish Re" or the "Company") (Pink Sheets: SKRRF) announced today that it has posted to its web site its consolidated financial statements for the three month and six month periods ended June 30, 2011. Scottish Re reported consolidated net losses of $181.0 million and $158.9 million for the three and six month periods ended June 30, 2011, respectively, which results were primarily driven by the $153.3 million loss from the consummation on May 27, 2011 of the Orkney I Unwind Transaction (as defined and explained in Note 7 of the Companya�s consolidated financial statements). In addition to the effects of the Orkney I Unwind Transaction, the Companya�s results of operations for the three month period ended June 30, 2011 were also adversely affected by increased death claims on reinsured policies and negative reinsurance administration adjustments associated with certain reinsurance treaties.

While the Orkney I Unwind Transaction generated a U.S. GAAP net loss, it improved the financial strength of the Companya�s principal reinsurance operating entity, Scottish Re (U.S.), Inc. (aSRUSa), and was a factor in the decision by the Delaware Department of Insurance to release SRUS from regulatory supervision on June 23, 2011.

The Companya�s results of operations for the three month and six month periods ended June 30, 2011 compared to consolidated net income of $74.6 million and $174.3 million, respectively, for the three and six month periods ended June 30, 2010. The Companya�s 2010 results were primarily driven by an increase in the market value of the Companya�s invested assets.

The Companya�s consolidated financial statements for the three month and six month periods ended June 30, 2011, are available on the Companya�s web site at [ www.scottishre.com ].

The Company also announced today an update on the status of the previously-announced merger agreement entered into on April 15, 2011 (as the same was approved by the Companya�s shareholders on June 8, 2011, the aMerger Agreementa) with a newly-formed subsidiary of its controlling shareholders, SRGL Acquisition, LDC (an affiliate of Cerberus Capital Management, L.P. (aCerberusa)) and certain affiliates of Massachusetts Mutual Life Insurance Company (aMassMutual Capitala and, together with Cerberus, the aInvestorsa).

As previously announced, the Merger Agreement imposes certain conditions to the obligations of the respective parties to close the merger, all of which have now been satisfied or waived. The Company and the Investors currently are in discussions regarding the scheduling of a closing date for the merger, which is expected to occur prior to the end of August 2011. Upon the closing and effectiveness of the merger, all existing ordinary shares will be cancelled and all shareholders (other than ordinary shareholders that have exercised dissentersa� rights under the laws of the Cayman Islands) will be contacted by the Bank of New York, as paying agent, with information to arrange for payment to such shareholders of the merger consideration of $0.30 per ordinary share.

For additional discussion of the Merger Agreement and the merger, please refer to Notes 9 and 14 of the Companya�s consolidated financial statements for the three month and six month periods ended June 30, 2011.

About Scottish Re

Scottish Re Group Limited is a global life reinsurance specialist with operating businesses in Bermuda, Ireland, and the United States. Its operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited, and Scottish Re (U.S.), Inc. Additional information about Scottish Re Group Limited can be obtained from its web site, [ www.scottishre.com ].