8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 14, 2003

ANNUITY AND LIFE RE (HOLDINGS), LTD.

(Exact Name of Registrant as Specified in Charter)

Bermuda	1-16561	Not Applicable
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Cumberland House, 1 Victoria Street, Hamilton, Bermuda	HM 11
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (441) 296-7667

N/A

(Former Name or Former Address, if Changed Since Last Report)

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(a)	Not applicable.
(b)	Not applicable.
(c)	Exhibits

99.1	Press Release dated August 14, 2003
99.2	Unaudited Supplemental Financial Information

Item 12. Results of Operations and Financial Condition.

     The following information, furnished under “Item 12. Results of Operations and Financial Condition,” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

     On August 14, 2003, the Company issued a press release, which is attached hereto as Exhibit 99.1, and posted on its website unaudited supplemental financial information, which is attached hereto as Exhibit 99.2. Exhibits 99.1 and 99.2 are both incorporated herein by reference. The press release and the supplemental financial information disclosed material non-public information regarding the Company’s results of operations for the three month period ended June 30, 2003.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ANNUITY AND LIFE RE (HOLDINGS), LTD.
Date:	August 14, 2003	By:	/s/ John F. Burke
			John F. Burke Chief Executive Officer and Chief Financial Officer

EXHIBIT INDEX

99.1	Press Release dated August 14, 2003
99.2	Unaudited Supplemental Financial Information

EX-99.1 3 w89379aexv99w1.txt PRESS RELEASE DATED AUGUST 14, 2003 EXHIBIT 99.1 (ANNUITY & LIFE RE LOGO) Cumberland House 1 Victoria Street Hamilton HM 11 P.O. Box HM 98 Hamilton HM AX Bermuda (441) 296-7667 fax (441) 296-7665 FOR IMMEDIATE RELEASE CONTACT: Jay Burke Annuity & Life Re (Holdings), Ltd. 441-296-7667 ANNUITY & LIFE RE JUNE 30, 2003 EARNINGS REPORT Hamilton, Bermuda, August 14, 2003, 6:30 p.m. ET - Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) today reported financial results for the three month period ended June 30, 2003. The Company reported a net loss of $(68,716,440) or $(2.66) per fully diluted share for the three month period ended June 30, 2003 as compared to a net loss of $(20,293,998) or $(0.79) per fully diluted share for the three month period ended June 30, 2002. The loss in the second quarter of 2003 was primarily the result of losses associated with recaptures and terminations of life and annuity reinsurance agreements and adverse claims experience under the Company's life and annuity reinsurance agreements. Net realized investment gains for the three month period ended June 30, 2003 were $4,896,176 or $0.19 per fully diluted share as compared with net realized investment gains of $1,837,672 or $0.07 per fully diluted share for the three month period ended June 30, 2002. The increase in net realized investment gains during the three months ended June 30, 2003 is attributable to the strong credit quality of the Company's portfolio and low interest rates. Jay Burke, Chief Executive Officer and Chief Financial Officer of the Company, commented, "While we expect one or two more companies to recapture their agreements with us in the third quarter, the downsizing of the Company through the recapture and termination of life and annuity reinsurance agreements is essentially complete. During the second quarter, we were able to successfully negotiate the termination of our largest guaranteed minimum death benefit contract, which eliminated a drain on our earnings. With our downsizing essentially completed, we are now shifting our focus toward the future. "On August 5, 2003, we were notified by XL Life Ltd that it intends to recapture its 50% quota share reinsurance contract with us. This caused us to expense approximately $21 million of deferred acquisition costs associated with that contract. We continue to discuss a comprehensive termination and settlement of all of our reinsurance relationships with XL Life and its affiliates. "We made further progress in reducing our unsecured letter of credit facility at Citibank. Its exposure is now $29 million compared to $89 million in the summer of 2002 when we first agreed to reduce or eliminate its exposure. While we were not able to collateralize the credit facility by June 30, 2003, Citibank continues to work with us. We expect further reductions to occur in the coming quarters. "We have also made significant progress in reducing future operating expenses. We have reduced our staffing levels by 40%, and are now turning our efforts toward normalizing our costs associated with outside professional services. "We have completed an analysis of our remaining book of business, including anticipated third quarter recaptures. After repositioning the investment portfolio through the second half of 2003 we expect to see a small profit in 2004. With respect to the annuity business, which now consists of four accounts, while we expect a slight profit, results from this segment have historically been volatile. "Overall, while we still face certain challenges, we have made great strides toward stabilizing the Company and bringing our operating costs in line with the Company's expected premium volume." During the second quarter of 2003, the Company negotiated the recapture and termination of several life reinsurance agreements, an annuity reinsurance agreement and its largest guaranteed minimum death benefit reinsurance agreement. As noted above, the Company was recently notified by XL Life that it intends to recapture its 50% quota share reinsurance contract. In connection with all these recaptures and terminations, the Company incurred losses of approximately $(55,000,000), resulting from the write down of deferred acquisition costs and cash payments made to cedents net of reserve releases associated with the recaptures and terminations. The net loss for the three months ended June 30, 2003 was also affected by adverse claims experience under the Company's life and annuity reinsurance agreements, contributing losses of $(11,400,000). Approximately $(8,500,000) of the loss was related to life and annuity contracts that were recaptured in the second quarter. A reduction in investment income and losses on embedded derivatives also contributed to the Company's net loss for three months ended June 30, 2003. Unrealized gains on the Company's investments were $2,641,227 as of June 30, 2003 compared to $6,162,525 at December 31, 2002. The Company's investment portfolio currently maintains an average credit quality of AA+. Cash used by operations for the six month period ended June 30, 2003 was $86,149,537, compared to cash provided by operations of $18,395,545 for the comparable period ending June 30, 2002. At June 30, 2003, virtually all of the Company's invested assets were pledged as collateral for the benefit of its U.S. based clients and letter of credit providers. Book value per share at June 30, 2003 was $5.52 compared to $10.28 at December 31, 2002. Tangible book value, which is book value excluding deferred acquisition costs was $1.44 per share at June 30, 2003. LIFE SEGMENT RESULTS Life segment loss for the three month period ended June 30, 2003 was $(39,338,329), as compared with segment income of $6,451,436 for the comparable prior period of 2002. The significant segment loss in the second quarter of 2003 is primarily due to a loss of approximately $(28,310,000) relating to the recaptures of life reinsurance agreements by the Company's cedents, reflecting the write down of deferred acquisition costs and cash payments made to cedents net of reserve releases. Approximately $21,000,000 of this amount relates to the anticipated recapture of the 50% quota share reinsurance agreement with XL Life. Adverse mortality experience continued into the second quarter and losses of $(8,480,000) were incurred on the Company's life reinsurance agreements. Reinsurance agreements that have now been recaptured were responsible for approximately $(6,200,000) of this loss. Reduced investment income also contributed to the Company's net loss for three months ended June 30, 2003. This reduced investment income is the result of a lower yields and a lower level of invested assets resulting from recaptures. The Company decided to maintain a high quality portfolio with a large cash position for the first six months of 2003 to maximize the Company's ability to meet collateral requirements of its cedents and letter of credit providers and reduce financial market risk. The Company plans to reposition the portfolio in the second half of 2003. -2- ANNUITY SEGMENT RESULTS Annuity segment loss was $(33,063,939) for the three month period ended June 30, 2003, as compared with a loss of $(29,790,379) for the three month period ended June 30, 2002, reflecting a $(20,400,000) loss related to the termination of the Company's largest guaranteed minimum death benefit reinsurance agreement, $(2,900,000) of losses on that agreement during the quarter, a loss of $(4,100,000) relating to the termination of another annuity reinsurance agreement and embedded derivative losses of $(1,700,000). Conference Call Information August 15, 2003, 9:00 a.m. Eastern Time 719-457-2692 or 800-310-1961, Code # 250023 The call will be available for replay for seven days following the conference call. The replay numbers are: 719-457-0820 or 888-203-1112, Code # 250023 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 reduce or otherwise satisfy the Company's collateral obligations through novations, recaptures or otherwise; the outcome of pending legal proceedings involving the Company; the Company's ability to obtain acceptable 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 maintain the listing of its common shares on the New York Stock Exchange; 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; the loss of a key executive; 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, 2002, as amended. 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 www.alre.bm/releases_2003.html. Certain financial information that has been made available to financial analysts, and which may be discussed on the conference call, is available in the "Financial Reports" section of the Company's website at www.alre.bm/reports.html. -3- ANNUITY AND LIFE RE (HOLDINGS), LTD. CONSOLIDATED BALANCE SHEETS (U.S. DOLLARS)

JUNE 30, 2003 DECEMBER 31, 2002 ------------- ----------------- (UNAUDITED) ASSETS Cash and cash equivalents $ 139,793,317 $ 152,930,908 Fixed income investments at fair value (amortized cost of $82,117,597 and $146,487,903 at June 30, 2003 and December 31, 2002) 85,064,792 153,415,429 Funds withheld at interest 845,456,798 1,427,093,380 Accrued investment income 1,080,806 2,141,338 Receivable for reinsurance ceded 90,396,049 93,669,173 Other reinsurance receivables 6,947,154 25,025,453 Deferred policy acquisition costs 108,570,393 187,913,648 Other assets 1,429,685 2,508,858 --------------- --------------- TOTAL ASSETS $ 1,278,738,994 $ 2,044,698,187 =============== =============== LIABILITIES Reserves for future policy benefits $ 235,720,387 $ 269,619,809 Interest sensitive contracts liability 815,685,167 1,443,143,080 Other reinsurance liabilities 71,046,391 51,139,164 Accounts payable and accrued expenses 9,565,313 12,459,423 --------------- --------------- TOTAL LIABILITIES $ 1,132,017,258 $ 1,776,361,476 --------------- --------------- 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; 26,579,228 and 26,106,328 shares outstanding at June 30, 2003 and December 31, 2002) 26,579,228 26,106,328 Additional paid-in capital 334,887,270 335,334,932 Notes receivable from stock sales -- (1,626,493) Unamortized stock grant compensation (2,318,844) (2,514,693) Stock warrants 1,250,000 -- Accumulated other comprehensive income 2,641,227 6,162,525 (Deficit) (216,317,145) (95,125,888) --------------- --------------- TOTAL STOCKHOLDERS' EQUITY $ 146,721,736 $ 268,336,711 --------------- --------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,278,738,994 $ 2,044,698,187 =============== ===============

-4- ANNUITY AND LIFE RE (HOLDINGS), LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED AND IN U.S. DOLLARS)

FOR THE THREE MONTHS ENDED JUNE 30, FOR THE SIX MONTHS ENDED JUNE 30, ----------------------------------- --------------------------------- 2003 2002 2003 2002 ------------- ------------- ------------- ------------- REVENUES Net premiums $ 58,563,721 $ 92,065,743 $ 119,929,634 $ 170,072,634 Investment income, net of related expenses 5,734,738 26,366,669 13,893,427 50,956,459 Net realized investment gains 4,896,176 1,837,672 6,560,044 1,515,964 Net change in fair value of embedded derivatives (1,717,537) (6,566,805) 12,037,322 (4,976,707) Surrender fees and other revenues 3,002,778 6,161,207 4,393,025 10,057,332 ------------- ------------- ------------- ------------- TOTAL REVENUES $ 70,479,876 $ 119,864,486 $ 156,813,452 $ 227,625,682 ------------- ------------- ------------- ------------- BENEFITS AND EXPENSES Claims and policy benefits $ 84,425,206 $ 74,443,139 $ 159,514,646 $ 133,258,745 Interest credited to interest sensitive products 4,217,542 20,948,167 9,089,301 38,870,513 Policy acquisition costs and other insurance expenses 44,631,210 40,571,869 97,132,274 56,207,987 Collateral costs -- 1,053,037 -- 2,348,741 Operating expenses 5,922,358 3,142,272 12,268,488 6,800,064 ------------- ------------- ------------- ------------- TOTAL BENEFITS AND EXPENSES $ 139,196,316 $ 140,158,484 $ 278,004,709 $ 237,486,050 ------------- ------------- ------------- ------------- NET (LOSS) $ (68,716,440) $ (20,293,998) $(121,191,257) $ (9,860,368) ============= ============= ============= ============= NET (LOSS) PER COMMON SHARE Basic $ (2.66) $ (0.79) $ (4.69) $ (0.38) Diluted $ (2.66) $ (0.79) $ (4.69) $ (0.38)

-5- ANNUITY AND LIFE RE (HOLDINGS), LTD. SEGMENT RESULTS (UNAUDITED AND IN U.S. DOLLARS)

LIFE ANNUITY THREE MONTHS ENDING JUNE 30, 2003 REINSURANCE REINSURANCE CORPORATE CONSOLIDATED --------------- --------------- --------------- --------------- Revenues $ 57,507,429 $ 7,766,799 $ 5,205,648 $ 70,479,876 Benefits and expenses 96,845,758 40,830,738 1,519,821 139,196,316 --------------- --------------- --------------- --------------- Segment (Loss) Income $ (39,338,329) $ (33,063,939) $ 3,685,827 $ (68,716,440) =============== =============== =============== =============== Total Assets $ 396,766,778 $ 849,885,167 $ 32,087,049 $ 1,278,738,994 =============== =============== =============== =============== Fully Diluted Earnings per Share $ (1.59) $ (1.31) $ 0.24 $ (2.66) =============== =============== =============== =============== Book Value per share $ 5.52 =============== THREE MONTHS ENDING JUNE 30, 2002 Revenues $ 94,465,177 $ 21,395,350 $ 4,003,959 $ 119,864,486 Benefits and expenses 88,013,741 51,185,729 959,014 140,158,484 --------------- --------------- --------------- --------------- Segment Income (Loss) $ 6,451,436 $ (29,790,379) $ 3,044,945 $ (20,293,998) =============== =============== =============== =============== Total Assets $ 605,018,193 $ 1,553,294,479 $ 137,994,918 $ 2,296,307,590 =============== =============== =============== =============== Fully Diluted Earnings per Share $ 0.26 $ (1.16) $ 0.11 $ (0.79) =============== =============== =============== =============== Book Value per share $ 15.14 =============== SIX MONTHS ENDING JUNE 30, 2003 Revenues $ 117,677,416 $ 31,869,930 $ 7,266,106 $ 156,813,452 Benefits and expenses 202,161,913 72,804,345 3,038,452 278,004,709 --------------- --------------- --------------- --------------- Segment (Loss) Income $ (84,484,497) $ (40,934,415) $ 4,227,655 $ (121,191,257) =============== =============== =============== =============== Fully Diluted Earnings per Share $ (3.34) $ (1.62) $ 0.26 $ (4.69) =============== =============== =============== =============== Book Value per share $ 5.52 =============== SIX MONTHS ENDING JUNE 30, 2002 Revenues $ 173,611,221 $ 48,311,104 $ 5,703,357 $ 227,625,682 Benefits and expenses 159,970,569 75,183,152 2,332,329 237,486,050 --------------- --------------- --------------- --------------- Segment Income (Loss) $ 13,640,652 $ (26,872,048) $ 3,371,028 $ (9,860,368) =============== =============== =============== =============== Fully Diluted Earnings per Share $ 0.54 $ (1.04) $ 0.12 $ (0.38) =============== =============== =============== =============== Book Value per share $ 15.14 ===============

-6- EX-99.2 4 w89379aexv99w2.txt UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION . . . EXHIBIT 99.2 ANNUITY & LIFE RE (HOLDINGS), LTD. QUARTERLY STATEMENT OF NET INCOME AND OTHER FINANCIAL DATA

6/30/2003 3/31/2003 12/31/2002 9/30/2002 --------- --------- ---------- --------- REVENUES Net Premiums $ 58,563,721 $ 61,365,914 $ 89,090,406 $ 84,934,401 Investment Income 5,734,738 8,158,689 20,055,130 31,127,396 Realized gains(losses) 4,896,176 1,663,868 8,935,951 9,297,351 Net Change in FV of ED's (1,717,537) 13,754,859 (7,591,580) (13,277,823) Other 3,002,778 1,390,247 2,549,743 3,549,362 ------------- ------------- ------------- ------------- Total Revenues 70,479,876 86,333,577 113,039,650 115,630,687 ------------- ------------- ------------- ------------- BENEFITS AND EXPENSES Claims and Benefits 84,425,206 75,089,440 127,768,226 91,381,831 Annuity Interest 4,217,542 4,871,759 14,154,754 18,345,349 Policy Acquisition & Insurance costs 44,631,210 52,501,064 52,177,650 17,492,342 Financing Costs -- -- 6,867,795 3,731,580 Operating Expenses 5,922,358 6,346,130 11,951,126 3,826,602 ------------- ------------- ------------- ------------- Total Benefits and Expenses 139,196,316 138,808,393 212,919,551 134,777,704 Cumulative Effect -- -- -- -- ------------- ------------- ------------- ------------- NET (LOSS) INCOME $ (68,716,440) $ (52,474,816) $ (99,879,901) $ (19,147,017) ============= ============= ============= ============= ADJUSTMENTS TO NET INCOME TO GET TO OPERATING INCOME, EXCLUDING TRANSAMERICA Realized Gains & Losses 4,896,176 1,663,868 8,935,951 9,297,351 Net Change in FV of ED's (3) (1,717,537) 13,754,859 (7,591,580) (13,277,823) Change in DAC Amort from ED's -- (6,953,904) 981,124 5,790,244 Transamerica (102,918) 883,041 (2,799,031) 2,000 ------------- ------------- ------------- ------------- OPERATING (LOSS) INCOME, X-TA $ (71,792,162) $ (61,822,680) $ (99,406,365) $ (20,958,789) ============= ============= ============= ============= NET (LOSS) INCOME PER SHARE Basic Shares 25,841,057 25,796,195 25,755,411 25,733,141 Earnings $ (2.66) $ (2.03) $ (3.88) $ (0.74) Diluted Shares 26,324,716 26,325,845 26,089,620 26,100,766 Earnings $ (2.66) $ (2.03) $ (3.88) $ (0.74) OPERATING (LOSS) INCOME, PER FULLY DILUTED SHARE X-TA (2) $ (2.73) $ (2.35) $ (3.81) $ (0.80) LIFE INSURANCE IN FORCE Face Amount (000's) $ 60,397,300 $ 68,989,300 $ 117,511,100 $ 150,948,700 Premium $ 156,300,000 $ 261,541,595 $ 261,541,595 $ 325,350,000 ANNUITY DEPOSITS (000's) $ 815,685 $ 998,609 $ 1,443,143 $ 1,464,668 EXPENSE RATIO AS A % OF REVENUE, X-CHANGE IN FV OF EMBEDDED DERIVATIVES Current Quarter 8.20% 8.74% 9.91% 2.97% YTD 5.56% 5.21% 4.68% 2.94% BOOK VALUE PER SHARE (1) $ 5.52 $ 8.23 $ 10.28 $ 14.73

6/30/2002 3/31/2002 12/31/01 9/30/01 --------- --------- -------- ------- REVENUES Net Premiums $ 92,065,743 $ 78,006,891 $ 69,837,478 $ 66,813,664 Investment Income 26,366,669 24,589,790 24,194,090 24,239,602 Realized gains(losses) 1,837,672 (321,708) (195,145) 1,078,933 Net Change in FV of ED's (6,566,805) 1,590,098 8,596,369 (5,265,396) Other 6,161,207 3,896,125 5,228,601 5,512,939 ------------- ------------- ------------- ------------- Total Revenues 119,864,486 107,761,196 107,661,393 92,379,742 ------------- ------------- ------------- ------------- BENEFITS AND EXPENSES Claims and Benefits 74,443,139 58,815,606 54,325,087 74,873,807 Annuity Interest 20,948,167 17,922,346 18,768,251 14,401,290 Policy Acquisition & Insurance costs 40,571,869 15,636,118 31,359,643 43,306,421 Financing Costs 1,053,037 1,295,704 1,200,000 -- Operating Expenses 3,142,272 3,657,792 3,719,608 2,478,698 ------------- ------------- ------------- ------------- Total Benefits and Expenses 140,158,484 97,327,566 109,372,589 135,060,216 Cumulative Effect -- -- -- -- ------------- ------------- ------------- ------------- NET (LOSS) INCOME $ (20,293,998) $ 10,433,630 $ (1,711,196) $ (42,680,474) ============= ============= ============= ============= ADJUSTMENTS TO NET INCOME TO GET TO OPERATING INCOME, EXCLUDING TRANSAMERICA Realized Gains & Losses 1,837,672 (321,708) (195,145) 1,078,933 Net Change in FV of ED's (3) (6,566,805) 1,590,098 8,596,369 (5,265,396) Change in DAC Amort from ED's 903,739 598,981 (2,730,908) 269,009 Transamerica (24,123,300) (2,300) (15,778,360) (22,024,398) ------------- ------------- ------------- ------------- OPERATING (LOSS) INCOME, X-TA $ 7,654,696 $ 8,568,559 $ 8,396,848 $ (16,738,622) ============= ============= ============= ============= NET (LOSS) INCOME PER SHARE Basic Shares 25,722,016 25,705,328 25,695,578 25,683,328 Earnings $ (0.79) $ 0.41 $ (0.07) $ (1.66) Diluted Shares 26,755,190 26,968,835 27,813,418 28,534,245 Earnings $ (0.79) $ 0.39 $ (0.07) $ (1.66) OPERATING (LOSS) INCOME, PER FULLY DILUTED SHARE X-TA (2) $ 0.29 $ 0.32 $ 0.30 $ (0.59) LIFE INSURANCE IN FORCE Face Amount (000's) $ 137,182,089 $ 129,238,000 $ 117,400,000 $ 104,000,000 Premium $ 333,800,000 $ 310,400,000 $ 240,100,000 $ 227,000,000 ANNUITY DEPOSITS (000S) $ 1,464,394 $ 1,503,144 $ 1,516,796 $ 1,629,042 EXPENSE RATIO AS A % OF REVENUE, X-CHANGE IN FV OF EMBEDDED DERIVATIVES Current Quarter 2.49% 3.45% 3.75% 2.54% YTD 2.92% 3.45% 3.19% 2.97% BOOK VALUE PER SHARE (1) $ 15.21 $ 15.78 $ 15.65 $ 15.91

6/30/01 3/31/01 12/31/00 9/30/00 --------- --------- ---------- --------- REVENUES Net Premiums $ 61,628,943 $ 53,513,153 $ 49,901,622 $ 44,588,022 Investment Income 19,605,194 23,089,810 60,286,132 23,745,266 Realized gains(losses) 320,629 25,621 (1,133,867) (702,549) Net Change in FV of ED's 1,846,981 (148,927) -- -- Other 4,644,690 3,133,471 1,829,461 1,689,451 ------------- ------------- ------------- ------------- Total Revenues 88,046,437 79,613,128 110,883,348 69,320,190 ------------- ------------- ------------- ------------- BENEFITS AND EXPENSES Claims and Benefits 45,201,447 41,624,668 33,913,597 36,040,180 Annuity Interest 7,797,407 8,291,470 43,692,693 5,322,440 Policy Acquisition & Insurance costs 26,889,334 25,025,150 16,286,966 14,922,217 Financing Costs -- -- -- -- Operating Expenses 2,689,045 2,665,070 3,926,303 2,328,514 ------------- ------------- ------------- ------------- Total Benefits and Expenses 82,577,233 77,606,358 97,819,559 58,613,351 Cumulative Effect -- (3,665,735) -- -- ------------- ------------- ------------- ------------- NET (LOSS) INCOME $ 5,469,204 $ (1,658,965) $ 13,063,789 $ 10,706,839 ============= ============= ============= ============= ADJUSTMENTS TO NET INCOME TO GET TO OPERATING INCOME, EXCLUDING TRANSAMERICA Realized Gains & Losses 320,629 25,621 (1,133,867) (702,549) Net Change in FV of ED's (3) 1,846,981 (3,814,662) -- -- Change in DAC Amort from ED's 257,264 884,451 -- -- Transamerica (7,222,726) (7,020,468) 2,842,156 4,120,238 ------------- ------------- ------------- ------------- OPERATING (LOSS) INCOME, X-TA $ 10,267,056 $ 8,266,093 $ 11,355,500 $ 7,289,150 ============= ============= ============= ============= NET (LOSS) INCOME PER SHARE Basic Shares 25,591,746 25,501,331 25,499,999 25,499,999 Earnings $ 0.21 $ (0.07) $ 0.51 $ 0.42 Diluted Shares 28,211,313 27,960,971 27,676,641 27,419,525 Earnings $ 0.19 $ (0.07) $ 0.47 $ 0.39 OPERATING (LOSS) INCOME, PER FULLY DILUTED SHARE X-TA (2) $ 0.36 $ 0.30 $ 0.41 $ 0.27 LIFE INSURANCE IN FORCE Face Amount (000's) $ 91,105,000 $ 83,205,000 $ 77,016,000 $ 61,419,000 Premium $ 203,600,000 $ 184,900,000 $ 159,000,000 $ 140,600,000 ANNUITY DEPOSITS (000's) $ 1,550,816 $ 1,553,352 $ 1,595,129 $ 1,480,004 EXPENSE RATIO AS A % OF REVENUE, X-CHANGE IN FV OF EMBEDDED DERIVATIVES Current Quarter 3.12% 3.34% 3.54% 3.36% YTD 3.23% 3.34% 3.39% 3.30% BOOK VALUE PER SHARE (1) $ 17.36 $ 17.33 $ 17.13 $ 16.43

6/30/00 3/31/00 12/31/99 9/30/99 --------- --------- ---------- --------- REVENUES Net Premiums $ 37,684,372 $ 36,230,006 $ 43,114,344 $ 21,101,366 Investment Income 25,819,232 26,797,697 26,724,547 19,528,879 Realized gains(losses) (2,417,880) (562,825) (597,464) (793,008) Net Change in FV of ED's -- -- -- -- Other 1,589,357 1,807,601 1,575,505 1,250,961 ------------- ------------- ------------- ------------ Total Revenues 62,675,081 64,272,479 70,816,932 41,088,198 ------------- ------------- ------------- ------------ BENEFITS AND EXPENSES Claims and Benefits 29,898,304 32,958,111 31,447,754 17,232,038 Annuity Interest 8,063,576 8,763,595 9,724,666 4,762,521 Policy Acquisition & Insurance costs 14,919,657 12,856,683 16,751,414 9,052,163 Financing Costs -- -- -- -- Operating Expenses 2,165,313 1,991,214 3,133,536 1,326,416 ------------- ------------- ------------- ------------ Total Benefits and Expenses 55,046,850 56,569,603 61,057,370 32,373,138 Cumulative Effect -- -- -- -- ------------- ------------- ------------- ------------ NET (LOSS) INCOME $ 7,628,231 $ 7,702,876 $ 9,759,562 $ 8,715,060 ============= ============= ============= ============ ADJUSTMENTS TO NET INCOME TO GET TO OPERATING INCOME, EXCLUDING TRANSAMERICA Realized Gains & Losses (2,417,880) (562,825) (597,464) (793,008) Net Change in FV of ED's (3) -- -- -- -- Change in DAC Amort from ED's -- -- -- -- Transamerica 4,011,938 4,008,208 3,446,911 3,429,323 ------------- ------------- ------------- ------------ OPERATING (LOSS) INCOME, X-TA $ 6,034,173 $ 4,257,493 $ 6,910,115 $ 6,078,745 ============= ============= ============= ============ NET (LOSS) INCOME PER SHARE Basic Shares 25,499,999 25,499,999 25,499,999 25,499,999 Earnings $ 0.30 $ 0.30 $ 0.38 $ 0.34 Diluted Shares 27,311,063 27,443,307 27,369,033 27,218,541 Earnings $ 0.28 $ 0.28 $ 0.36 $ 0.32 OPERATING (LOSS) INCOME, PER FULLY DILUTED SHARE X-TA (2) $ 0.22 $ 0.16 $ 0.25 $ 0.22 LIFE INSURANCE IN FORCE Face Amount (000's) $ 55,467,000 $ 52,654,000 $ 45,407,000 $ 36,558,000 Premium $ 136,700,000 $ 131,200,000 $ 110,000,000 $ 79,200,000 ANNUITY DEPOSITS (000's) $ 1,569,619 $ 1,651,256 $ 1,603,383 $ 1,625,983 EXPENSE RATIO AS A % OF REVENUE, X-CHANGE IN FV OF EMBEDDED DERIVATIVES Current Quarter 3.45% 3.10% 4.42% 3.23% YTD 3.27% 3.10% 4.09% 3.89% BOOK VALUE PER SHARE (1) $ 16.02 $ 15.64 $ 15.37 $ 15.18

6/30/99 3/31/99 12/31/98 9/30/98 6/30/98 ------- ------- -------- ------- ------- REVENUES Net Premiums $ 18,372,285 $18,247,102 $17,878,140 $10,065,750 -- Investment Income 20,677,325 18,159,060 14,464,369 5,366,566 4,299,615 Realized gains(losses) (157,755) 263,458 1,505,617 1,018,990 148,674 Net Change in FV of ED's -- -- -- -- -- Other 149,262 239,701 311,243 -- -- ------------ ----------- ----------- ----------- ----------- Total Revenues 39,041,117 36,909,321 34,159,369 16,451,306 4,448,289 ------------ ----------- ----------- ----------- ----------- BENEFITS AND EXPENSES Claims and Benefits 15,507,499 15,765,869 14,897,615 8,399,500 -- Annuity Interest 3,948,668 3,876,829 1,989,000 -- -- Policy Acquisition & Insurance costs 8,991,772 7,405,339 6,341,697 200,175 -- Financing Costs -- -- -- -- -- Operating Expenses 1,846,935 1,378,915 1,705,631 1,191,465 873,278 ------------ ----------- ----------- ----------- ----------- Total Benefits and Expenses 30,294,874 28,426,952 24,933,943 9,791,140 873,278 Cumulative Effect -- -- -- -- -- ------------ ----------- ----------- ----------- ----------- NET (LOSS) INCOME $ 8,746,243 $ 8,482,369 $ 9,225,426 $ 6,660,166 $ 3,575,011 ============ =========== =========== =========== =========== ADJUSTMENTS TO NET INCOME TO GET TO OPERATING INCOME, EXCLUDING TRANSAMERICA Realized Gains & Losses (157,755) 263,458 1,505,617 1,018,990 148,674 Net Change in FV of ED's (3) -- -- -- -- -- Change in DAC Amort from ED's -- -- -- -- -- Transamerica 4,062,300 2,653,060 2,242,565 -- -- ------------ ----------- ----------- ----------- ----------- OPERATING (LOSS) INCOME, X-TA $ 4,841,698 $ 5,565,851 $ 5,477,244 $ 5,641,176 $ 3,426,337 ============ =========== =========== =========== =========== NET (LOSS) INCOME PER SHARE Basic Shares 25,499,999 25,499,999 25,499,999 25,499,999 21,016,483 Earnings $ 0.34 $ 0.33 $ 0.36 $ 0.26 $ 0.17 Diluted Shares 27,114,771 27,181,315 27,373,430 26,629,834 22,405,132 Earnings $ 0.32 $ 0.31 $ 0.34 $ 0.25 $ 0.16 OPERATING (LOSS) INCOME, PER FULLY DILUTED SHARE X-TA (2) $ 0.18 $ 0.20 $ 0.20 $ 0.21 $ 0.15 LIFE INSURANCE IN FORCE Face Amount (000's) $ 31,229,000 $29,960,000 $22,538,000 $15,000,000 -- Premium $ 73,700,000 $73,000,000 $54,900,000 $40,000,000 -- ANNUITY DEPOSITS (000's) $ 1,607,049 $ 1,510,639 $ 1,283,676 $ 1,057,702 -- EXPENSE RATIO AS A % OF REVENUE, X-CHANGE IN FV OF EMBEDDED DERIVATIVES Current Quarter 4.73% 3.74% 4.99% 7.24% 19.63% YTD 4.25% 3.74% 6.85% 9.88% 19.63% BOOK VALUE PER SHARE (1) $ 14.95 $ 14.88 $ 14.72 $ 14.55 $ 14.03

(1) Computed as reported BV divided by outstanding shares. (2) Utilizes fully diluted shares even if they are anti-dilutive. (3) Includes cumulative effect of a change in accounting principle. ANNUITY & LIFE RE SEGMENT PERFORMANCE INFORMATION, RESTATED FOR FAS 133 AND LMIG

DECEMBER 31, 2000 ----------------------------------------------------------------------------------- LIFE REINSURANCE FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER - ---------------- ------------- -------------- ------------- -------------- Life premiums ............................... 34,690,006 36,324,372 42,548,022 47,875,622 Net investment income ....................... 1,466,942 1,605,164 1,498,751 1,467,938 -------------- -------------- -------------- -------------- Total Revenues .............................. 36,156,948 37,929,536 44,046,773 49,343,560 -------------- -------------- -------------- -------------- Benefits .................................... 32,038,096 28,971,653 35,454,847 32,796,883 Expenses .................................... 2,424,402 4,860,553 4,196,248 7,764,144 Financing costs ............................. -- -- -- -- -------------- -------------- -------------- -------------- Total Expenses .............................. 34,462,497 33,832,206 39,651,095 40,561,027 -------------- -------------- -------------- -------------- Life Segment Income (Loss) .................. 1,694,451 4,097,330 4,395,678 8,782,533 ============== ============== ============== ============== Invested assets ............................. 93,223,039 92,321,040 85,898,474 98,719,458 -------------- -------------- -------------- -------------- Total Assets ................................ 132,550,727 241,491,920 269,145,189 291,657,595 ============== ============== ============== ============== Policyholder benefit liabilities ............ 45,067,769 151,407,586 168,560,545 172,096,303 -------------- -------------- -------------- -------------- Total Liabilities ........................... 51,835,227 157,470,420 179,023,689 179,720,125 ============== ============== ============== ============== Shareholders equity ......................... 80,715,500 84,021,500 90,121,500 111,937,470 ============== ============== ============== ============== Segment Return on Equity - Annualized ....... 9.0% 19.9% 20.2% 34.8% ============== ============== ============== ============== ROR ......................................... 4.7% 10.8% 10.0% 17.8% ============== ============== ============== ============== ANNUITY REINSURANCE Annuity premiums and fees ................... 3,347,601 2,949,357 3,729,451 3,855,461 Net investment income ....................... 21,241,480 19,889,025 17,917,534 54,736,268 -------------- -------------- -------------- -------------- Total Revenues .............................. 24,589,081 22,838,382 21,646,985 58,591,729 -------------- -------------- -------------- -------------- Annuity Benefits ............................ 9,683,610 8,990,227 5,907,773 44,809,407 Expenses .................................... 11,176,398 10,884,127 11,616,811 10,125,081 -------------- -------------- -------------- -------------- Total Expenses .............................. 20,860,009 19,874,355 17,524,584 54,934,488 -------------- -------------- -------------- -------------- Annuity Segment Income (Loss), before cumulative effect of FAS 133 ...... 3,729,072 2,964,027 4,122,401 3,657,241 Cumulative effect of FAS 133 ................ -- -- -- -- -------------- -------------- -------------- -------------- Annuity Segment Income (Loss) ............... 3,729,072 2,964,027 4,122,401 3,657,241 ============== ============== ============== ============== Invested assets ............................. 1,549,411,492 1,484,681,045 1,403,461,868 1,499,613,767 -------------- -------------- -------------- -------------- Total Assets ................................ 1,724,828,149 1,643,051,707 1,555,032,266 1,675,647,751 ============== ============== ============== ============== Interest sensitive contract liabilities ..... 1,652,943,649 1,571,873,207 1,482,253,766 1,597,985,221 -------------- -------------- -------------- -------------- Total Liabilities ........................... 1,652,943,649 1,571,873,207 1,482,253,766 1,597,985,221 ============== ============== ============== ============== Shareholders equity ......................... 71,884,500 71,178,500 72,778,500 77,662,530 ============== ============== ============== ============== Segment Return on Equity - Annualized ....... 20.6% 16.6% 22.9% 19.4% ============== ============== ============== ============== Seg inc/Ave. Policyholder Liab - Annualized . 0.9% 0.7% 1.1% 0.9% ============== ============== ============== ==============

DECEMBER 31, 2001 ----------------------------------------------------------------------------------- LIFE REINSURANCE FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER - ---------------- ------------- -------------- ------------- -------------- Life premiums ............................... 51,003,153 59,308,943 63,923,667 67,542,477 Net investment income ....................... 1,399,958 1,704,157 2,027,692 2,877,741 -------------- -------------- -------------- -------------- Total Revenues .............................. 52,403,111 61,013,100 65,951,358 70,420,219 -------------- -------------- -------------- -------------- Benefits .................................... 40,361,817 44,033,754 73,371,548 53,154,853 Expenses .................................... 7,907,171 9,602,197 13,004,348 9,421,985 Financing costs ............................. -- -- -- 1,200,000 -------------- -------------- -------------- -------------- Total Expenses .............................. 48,268,988 53,635,950 86,375,896 63,776,839 -------------- -------------- -------------- -------------- Life Segment Income (Loss) .................. 4,134,123 7,377,149 (20,424,537) 6,643,380 ============== ============== ============== ============== Invested assets ............................. 98,053,528 126,400,607 151,311,682 264,434,485 -------------- -------------- -------------- -------------- Total Assets ................................ 304,343,877 333,362,942 401,683,367 538,181,649 ============== ============== ============== ============== Policyholder benefit liabilities ............ 176,221,387 187,984,169 212,609,621 221,145,594 -------------- -------------- -------------- -------------- Total Liabilities ........................... 184,226,407 203,710,642 255,380,367 375,485,898 ============== ============== ============== ============== Shareholders equity ......................... 120,117,470 129,652,300 146,303,000 162,695,751 ============== ============== ============== ============== Segment Return on Equity - Annualized ....... 14.3% 23.6% -59.2% 17.2% ============== ============== ============== ============== ROR ......................................... 7.9% 12.1% -31.0% 9.4% ============== ============== ============== ============== ANNUITY REINSURANCE Annuity premiums and fees ................... 5,643,471 6,964,689 8,402,936 7,523,602 Net investment income ....................... 17,894,195 15,797,730 13,622,109 27,321,433 -------------- -------------- -------------- -------------- Total Revenues .............................. 23,537,665 22,762,419 22,025,045 34,845,035 -------------- -------------- -------------- -------------- Annuity Benefits ............................ 9,554,321 8,965,100 15,903,549 19,938,485 Expenses .................................... 18,265,791 18,463,065 31,507,297 24,055,706 -------------- -------------- -------------- -------------- Total Expenses .............................. 27,820,111 27,428,166 47,410,846 43,994,191 -------------- -------------- -------------- -------------- Annuity Segment Income (Loss), before cumulative effect of FAS 133 .......... (4,282,446) (4,665,746) (25,385,802) (9,149,155) Cumulative effect of FAS 133 ................ (3,665,735) -- -- -- -------------- -------------- -------------- -------------- Annuity Segment Income (Loss) ............... (7,948,181) (4,665,746) (25,385,802) (9,149,155) ============== ============== ============== ============== Invested assets ............................. 1,458,736,475 1,456,392,079 1,562,593,817 1,492,722,891 -------------- -------------- -------------- -------------- Total Assets ................................ 1,632,014,571 1,630,980,947 1,713,508,054 1,602,020,485 ============== ============== ============== ============== Interest sensitive contract liabilities ..... 1,556,532,041 1,553,833,247 1,631,111,054 1,520,316,236 -------------- -------------- -------------- -------------- Total Liabilities ........................... 1,556,532,041 1,553,833,247 1,631,111,054 1,520,316,236 ============== ============== ============== ============== Shareholders equity ......................... 75,482,530 77,147,700 82,397,000 81,704,249 ============== ============== ============== ============== Segment Return on Equity - Annualized ....... -22.4% -24.5% -127.3% -44.6% ============== ============== ============== ============== Seg inc/Ave. Policyholder Liab - Annualized . -1.1% -1.2% -6.4% -2.3% ============== ============== ============== ==============

DECEMBER 31, 2002 ----------------------------------------------------------------------------------- LIFE REINSURANCE FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER - ---------------- ------------- -------------- ------------- -------------- Life premiums .............................. 75,163,415 89,431,564 82,304,042 86,281,988 Net investment income ...................... 3,982,629 5,033,613 4,404,125 5,581,802 -------------- -------------- -------------- -------------- Total Revenues ............................. 79,146,044 94,465,177 86,708,167 91,863,790 -------------- -------------- -------------- -------------- Benefits ................................... 57,176,440 71,565,974 77,925,339 111,461,759 Expenses ................................... 13,447,202 15,280,408 14,990,085 44,569,012 Financing costs ............................ 1,295,704 1,053,037 3,731,580 6,867,794 -------------- -------------- -------------- -------------- Total Expenses ............................. 71,919,346 87,899,418 96,647,003 162,898,564 -------------- -------------- -------------- -------------- Life Segment Income (Loss) ................. 7,226,698 6,565,759 (9,938,836) (71,034,773) ============== ============== ============== ============== Invested assets ............................ 275,563,872 302,098,565 340,711,970 303,207,491 -------------- -------------- -------------- -------------- Total Assets ............................... 566,428,888 605,018,193 657,422,016 528,577,026 ============== ============== ============== ============== Policyholder benefit liabilities ........... 234,131,629 254,695,355 280,915,909 269,619,809 -------------- -------------- -------------- -------------- Total Liabilities .......................... 388,658,888 419,318,193 452,822,016 322,877,026 ============== ============== ============== ============== Shareholders equity ........................ 177,770,000 185,700,000 204,600,000 205,700,000 ============== ============== ============== ============== Segment Return on Equity - Annualized ...... 17.0% 14.5% -20.4% -138.5% ============== ============== ============== ============== ROR ........................................ 9.1% 7.0% -11.5% -77.3% ============== ============== ============== ============== ANNUITY REINSURANCE Annuity premiums and fees .................. 6,739,601 8,795,385 6,179,721 5,358,161 Net investment income ...................... 20,176,153 12,599,964 12,355,845 6,222,901 -------------- -------------- -------------- -------------- Total Revenues ............................. 26,915,754 21,395,350 18,535,566 11,581,062 -------------- -------------- -------------- -------------- Annuity Benefits ........................... 19,561,512 23,825,333 31,801,841 30,461,221 Expenses ................................... 4,417,842 27,307,389 4,987,368 14,311,626 -------------- -------------- -------------- -------------- Total Expenses ............................. 23,979,353 51,132,722 36,789,209 44,772,847 -------------- -------------- -------------- -------------- Annuity Segment Income (Loss), before cumulative effect of FAS 133 ......... 2,936,401 (29,737,373) (18,253,643) (33,191,785) Cumulative effect of FAS 133 ............... -- -- -- -- -------------- -------------- -------------- -------------- Annuity Segment Income (Loss) .............. 2,936,401 (29,737,373) (18,253,643) (33,191,785) ============== ============== ============== ============== Invested assets ............................ 1,483,747,426 1,471,125,940 1,462,326,418 1,446,104,341 -------------- -------------- -------------- -------------- Total Assets ............................... 1,588,375,551 1,553,294,479 1,549,867,709 1,527,343,080 ============== ============== ============== ============== Interest sensitive contract liabilities .... 1,505,945,551 1,467,194,479 1,464,667,709 1,443,143,080 -------------- -------------- -------------- -------------- Total Liabilities .......................... 1,505,945,551 1,467,194,479 1,464,667,709 1,443,143,080 ============== ============== ============== ============== Shareholders equity ........................ 82,430,000 86,100,000 85,200,000 84,200,000 ============== ============== ============== ============== Segment Return on Equity - Annualized ...... 14.3% -141.2% -85.2% -156.7% ============== ============== ============== ============== Seg inc/Ave. Policyholder Liab - Annualized 0.8% -8.0% -5.0% -9.1% ============== ============== ============== ==============

DECEMBER 31, 2003 ----------------------------------------------------------------------- LIFE REINSURANCE FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER - ---------------- ------------- -------------- ------------- -------------- Life premiums ..................................... 58,575,661 56,053,471 Net investment income ............................. 1,594,325 1,453,958 -------------- -------------- -------------- -------------- Total Revenues .................................... 60,169,987 57,507,429 -------------- -------------- -------------- -------------- Benefits .......................................... 68,573,550 58,156,608 Expenses .......................................... 36,742,604 38,689,150 Financing costs ................................... -- -- -------------- -------------- -------------- -------------- Total Expenses .................................... 105,316,155 96,845,758 -------------- -------------- -------------- -------------- Life Segment Income (Loss) ........................ (45,146,168) (39,338,329) ============== ============== ============== ============== Invested assets ................................... 256,932,453 242,567,939 -------------- -------------- -------------- -------------- Total Assets ...................................... 446,513,145 396,766,778 ============== ============== ============== ============== Policyholder benefit liabilities .................. 256,908,708 235,720,387 -------------- -------------- -------------- -------------- Total Liabilities ................................. 346,213,145 306,766,778 ============== ============== ============== ============== Shareholders equity ............................... 100,300,000 90,000,000 ============== ============== ============== ============== Segment Return on Equity - Annualized ............. -139.2% -165.4% ============== ============== ============== ============== ROR ............................................... -75.0% -68.4% ============== ============== ============== ============== ANNUITY REINSURANCE Annuity premiums and fees ......................... 4,180,500 5,513,028 Net investment income ............................. 19,922,631 2,253,771 -------------- -------------- -------------- -------------- Total Revenues .................................... 24,103,131 7,766,799 -------------- -------------- -------------- -------------- Annuity Benefits .................................. 11,387,649 30,486,140 Expenses .......................................... 20,585,958 10,344,598 -------------- -------------- -------------- -------------- Total Expenses .................................... 31,973,607 40,830,738 -------------- -------------- -------------- -------------- Annuity Segment Income (Loss), before cumulative effect of FAS 133 . (7,870,476) (33,063,939) Cumulative effect of FAS 133 ...................... -- -- -------------- -------------- -------------- -------------- Annuity Segment Income (Loss) ..................... (7,870,476) (33,063,939) ============== ============== ============== ============== Invested assets ................................... 984,719,779 798,170,410 -------------- -------------- -------------- -------------- Total Assets ...................................... 1,043,908,700 849,885,167 ============== ============== ============== ============== Interest sensitive contract liabilities ........... 998,608,700 815,685,167 -------------- -------------- -------------- -------------- Total Liabilities ................................. 998,608,700 815,685,167 ============== ============== ============== ============== Shareholders equity ............................... 45,300,000 34,200,000 ============== ============== ============== ============== Segment Return on Equity - Annualized ............. -57.7% -332.7% ============== ============== ============== ============== Seg inc/Ave. Policyholder Liab - Annualized ....... -2.6% -11.7% ============== ============== ============== ==============

ANNUITY & LIFE RE SEGMENT PERFORMANCE INFORMATION

DECEMBER 31, 2000 ---------------------------------------------------------------------------------- FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER ------------- -------------- ------------- -------------- CORPORATE Net investment income, including realized capital gains and (losses) ......... 3,526,450 1,907,163 3,626,432 2,948,059 Expenses ................................ 1,247,097 1,340,290 1,437,672 2,324,044 -------------- -------------- -------------- -------------- Net income .............................. 2,279,353 566,874 2,188,761 624,015 ============== ============== ============== ============== Invested assets ......................... 244,947,333 254,993,063 259,775,025 253,596,024 -------------- -------------- -------------- -------------- Total Assets ............................ 251,794,745 258,277,877 264,999,434 257,381,545 ============== ============== ============== ============== Total Liabilities ....................... 5,441,098 4,595,910 5,320,890 5,765,769 ============== ============== ============== ============== Shareholders equity ..................... 246,353,647 253,681,967 259,678,544 251,615,776 ============== ============== ============== ============== Segment Return on Equity - Annualized ... 3.7% 0.9% 3.4% 1.0% ============== ============== ============== ============== CONSOLIDATED Net premiums and fees ................... 38,037,607 39,273,729 46,277,473 51,731,083 Net investment income, including realized capital gains and (losses) ......... 26,234,872 23,401,352 23,042,717 59,152,265 -------------- -------------- -------------- -------------- Total Revenues .......................... 64,272,479 62,675,081 69,320,190 110,883,348 -------------- -------------- -------------- -------------- Policyholder Benefits ................... 41,721,706 37,961,880 41,362,620 77,606,290 Expenses ................................ 14,847,897 17,084,970 17,250,731 20,213,269 Financing costs ......................... -- -- -- -- -------------- -------------- -------------- -------------- Total benefits and expenses ............. 56,569,603 55,046,850 58,613,351 97,819,559 -------------- -------------- -------------- -------------- Net income (loss), before cumulative effect of FAS 133 ................... 7,702,876 7,628,231 10,706,839 13,063,789 Cumulative effect of FAS 133 ............ -- -- -- -- -------------- -------------- -------------- -------------- Net Income (Loss) ....................... 7,702,876 7,628,231 10,706,839 13,063,789 ============== ============== ============== ============== Invested assets, including funds withheld 1,887,581,864 1,831,995,148 1,749,135,367 1,851,929,249 -------------- -------------- -------------- -------------- Total Assets ............................ 2,109,173,621 2,142,821,504 2,089,176,889 2,224,686,891 ============== ============== ============== ============== Policyholder benefit and interest sensitive contract liabilities ...... 1,698,011,418 1,723,280,793 1,650,814,311 1,770,081,524 -------------- -------------- -------------- -------------- Total Liabilities ....................... 1,710,219,974 1,733,939,537 1,666,598,345 1,783,471,115 ============== ============== ============== ============== Shareholders equity ..................... 398,953,647 408,881,967 422,578,544 441,215,776 ============== ============== ============== ============== Segment Return on Equity - Annualized ... 7.8% 7.6% 10.3% 12.1% ============== ============== ============== ==============

DECEMBER 31, 2001 ------------------------------------------------------------------------------------ FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER ------------- -------------- ------------- -------------- CORPORATE Net investment income, including realized capital gains and (losses) ......... 3,672,352 4,270,917 4,403,338 2,396,139 Expenses ................................ 1,517,258 1,513,117 1,273,474 1,601,558 ------------- -------------- -------------- -------------- Net income .............................. 2,155,093 2,757,800 3,129,864 794,581 ============= ============== ============== ============== Invested assets ......................... 258,975,192 261,316,480 213,182,175 156,312,422 ------------- -------------- -------------- -------------- Total Assets ............................ 262,947,177 270,959,673 218,103,053 170,570,456 ============= ============== ============== ============== Total Liabilities ....................... 5,378,378 10,742,871 18,157,941 12,781,614 ============= ============== ============== ============== Shareholders equity ..................... 257,568,799 260,216,802 199,945,112 157,788,842 ============= ============== ============== ============== Segment Return on Equity - Annualized ... 3.4% 4.3% 5.4% 1.8% ============= ============== ============== ============== CONSOLIDATED Net premiums and fees ................... 56,646,624 66,273,633 72,326,603 75,066,079 Net investment income, including realized capital gains and (losses) ......... 22,966,504 21,772,804 20,053,139 32,595,314 ------------- -------------- -------------- -------------- Total Revenues .......................... 79,613,128 88,046,437 92,379,742 107,661,393 ------------- -------------- -------------- -------------- Policyholder Benefits ................... 49,916,138 52,998,854 89,275,097 73,093,339 Expenses ................................ 27,690,220 29,578,379 45,785,119 35,079,249 Financing costs ......................... -- -- -- 1,200,000 ------------- -------------- -------------- -------------- Total benefits and expenses ............. 77,606,358 82,577,233 135,060,216 109,372,588 ------------- -------------- -------------- -------------- Net income (loss), before cumulative effect of FAS 133 ................... 2,006,770 5,469,204 (42,680,474) (1,711,195) Cumulative effect of FAS 133 ............ (3,665,735) -- -- -- ------------- -------------- -------------- -------------- Net Income (Loss) ....................... (1,658,965) 5,469,204 (42,680,474) (1,711,195) ============= ============== ============== ============== Invested assets, including funds withheld 1,815,765,195 1,844,109,166 1,927,087,675 1,913,469,798 ------------- -------------- -------------- -------------- Total Assets ............................ 2,199,305,625 2,235,303,562 2,333,294,474 2,310,772,590 ============= ============== ============== ============== Policyholder benefit and interest sensitive contract liabilities ...... 1,732,753,428 1,741,817,416 1,843,720,675 1,741,461,830 ------------- -------------- -------------- -------------- Total Liabilities ....................... 1,746,136,826 1,768,286,760 1,904,649,362 1,908,583,748 ============= ============== ============== ============== Shareholders equity ..................... 453,168,799 467,016,802 428,645,112 402,188,842 ============= ============== ============== ============== Segment Return on Equity - Annualized ... 1.8% 4.8% -38.1% -1.6% ============= ============== ============== ==============

DECEMBER 31, 2002 ------------------------------------------------------------------------------------ FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER ------------- -------------- ------------- -------------- CORPORATE Net investment income, including realized capital gains and (losses) ......... 1,699,398 4,003,959 10,386,955 9,594,797 Expenses ................................ 1,428,867 1,126,344 1,341,492 5,248,138 ------------- -------------- -------------- -------------- Net income .............................. 270,532 2,877,615 9,045,463 4,346,658 ============= ============== ============== ============== Invested assets ......................... 155,554,854 131,230,105 87,295,212 (15,872,115) ------------- -------------- -------------- -------------- Total Assets ............................ 161,250,407 137,994,918 113,368,735 (11,221,919) ============= ============== ============== ============== Total Liabilities ....................... 15,698,416 18,604,634 23,926,436 10,341,370 ============= ============== ============== ============== Shareholders equity ..................... 145,551,991 119,390,284 89,442,299 (21,563,289) ============= ============== ============== ============== Segment Return on Equity - Annualized ... 0.7% 8.7% 34.7% 51.2% ============= ============== ============== ============== CONSOLIDATED Net premiums and fees ................... 81,903,016 98,226,950 88,483,763 91,640,149 Net investment income, including realized capital gains and (losses) ......... 25,858,180 21,637,536 27,146,925 21,399,501 ------------- -------------- -------------- -------------- Total Revenues .......................... 107,761,196 119,864,485 115,630,688 113,039,650 ------------- -------------- -------------- -------------- Policyholder Benefits ................... 76,737,951 95,391,307 109,727,180 141,922,980 Expenses ................................ 19,293,910 43,714,140 21,318,944 64,128,777 Financing costs ......................... 1,295,704 1,053,037 3,731,580 6,867,794 ------------- -------------- -------------- -------------- Total benefits and expenses ............. 97,327,566 140,158,484 134,777,704 212,919,551 ------------- -------------- -------------- -------------- Net income (loss), before cumulative effect of FAS 133 ................... 10,433,630 (20,293,999) (19,147,016) (99,879,901) Cumulative effect of FAS 133 ............ -- -- -- -- ------------- -------------- -------------- -------------- Net Income (Loss) ....................... 10,433,630 (20,293,999) (19,147,016) (99,879,901) ============= ============== ============== ============== Invested assets, including funds withheld 1,914,866,152 1,904,454,610 1,890,333,600 1,733,439,717 ------------- -------------- -------------- -------------- Total Assets ............................ 2,316,054,846 2,296,307,590 2,320,658,460 2,044,698,187 ============= ============== ============== ============== Policyholder benefit and interest sensitive contract liabilities ...... 1,740,077,180 1,721,889,834 1,745,583,618 1,712,762,889 ------------- -------------- -------------- -------------- Total Liabilities ....................... 1,910,302,855 1,905,117,306 1,941,416,161 1,776,361,476 ============= ============== ============== ============== Shareholders equity ..................... 405,751,991 391,190,284 379,242,299 268,336,711 ============= ============== ============== ============== Segment Return on Equity - Annualized ... 10.3% -20.4% -19.9% -123.4% ============= ============== ============== ==============

DECEMBER 31, 2003 -------------------------------------------------------------------------- FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER ------------- -------------- ------------- -------------- CORPORATE Net investment income, including realized capital gains and (losses) ......... 2,060,459 5,205,648 Expenses ................................ 1,518,631 1,519,821 ------------- -------------- ------------- -------------- Net income .............................. 541,828 3,685,827 ============= ============== ============= ============== Invested assets ......................... 76,740,945 29,576,558 ------------- -------------- ------------- -------------- Total Assets ............................ 82,205,050 32,087,049 ============= ============== ============= ============== Total Liabilities ....................... 11,587,846 9,565,313 ============= ============== ============= ============== Shareholders equity ..................... 70,617,204 22,521,736 ============= ============== ============= ============== Segment Return on Equity - Annualized ... 3.7% 31.7% ============= ============== ============= ============== CONSOLIDATED Net premiums and fees ................... 62,756,161 61,566,499 Net investment income, including realized capital gains and (losses) ......... 23,577,416 8,913,377 ------------- -------------- ------------- -------------- Total Revenues .......................... 86,333,577 70,479,876 ------------- -------------- ------------- -------------- Policyholder Benefits ................... 79,961,199 88,642,748 Expenses ................................ 58,847,194 50,553,568 Financing costs ......................... -- -- ------------- -------------- ------------- -------------- Total benefits and expenses ............. 138,808,393 139,196,316 ------------- -------------- ------------- -------------- Net income (loss), before cumulative effect of FAS 133 ................... (52,474,816) (68,716,440) Cumulative effect of FAS 133 ............ -- -- ------------- -------------- ------------- -------------- Net Income (Loss) ....................... (52,474,816) (68,716,440) ============= ============== ============= ============== Invested assets, including funds withheld 1,318,393,177 1,070,314,907 ------------- -------------- ------------- -------------- Total Assets ............................ 1,572,626,895 1,278,738,994 ============= ============== ============= ============== Policyholder benefit and interest sensitive contract liabilities ...... 1,255,517,408 1,051,405,554 ------------- -------------- ------------- -------------- Total Liabilities ....................... 1,356,409,691 1,132,017,258 ============= ============== ============= ============== Shareholders equity ..................... 216,217,204 146,721,736 ============= ============== ============= ============== Segment Return on Equity - Annualized ... -86.6% -151.5% ============= ============== ============= ==============

-----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

                                                                    EXHIBIT 99.1

(ANNUITY & LIFE RE LOGO)                                        Cumberland House
                                                               1 Victoria Street
                                                                  Hamilton HM 11
                                                                  P.O. Box HM 98
                                                                  Hamilton HM AX
                                                                         Bermuda
                                                                  (441) 296-7667
                                                              fax (441) 296-7665

FOR IMMEDIATE RELEASE

CONTACT:  Jay Burke
          Annuity & Life Re (Holdings), Ltd.
          441-296-7667

ANNUITY & LIFE RE JUNE 30, 2003 EARNINGS REPORT

Hamilton, Bermuda, August 14, 2003, 6:30 p.m. ET - Annuity and Life Re
(Holdings), Ltd. (NYSE: ANR) today reported financial results for the three
month period ended June 30, 2003. The Company reported a net loss of
$(68,716,440) or $(2.66) per fully diluted share for the three month period
ended June 30, 2003 as compared to a net loss of $(20,293,998) or $(0.79) per
fully diluted share for the three month period ended June 30, 2002. The loss in
the second quarter of 2003 was primarily the result of losses associated with
recaptures and terminations of life and annuity reinsurance agreements and
adverse claims experience under the Company's life and annuity reinsurance
agreements.

Net realized investment gains for the three month period ended June 30, 2003
were $4,896,176 or $0.19 per fully diluted share as compared with net realized
investment gains of $1,837,672 or $0.07 per fully diluted share for the three
month period ended June 30, 2002. The increase in net realized investment gains
during the three months ended June 30, 2003 is attributable to the strong credit
quality of the Company's portfolio and low interest rates.

Jay Burke, Chief Executive Officer and Chief Financial Officer of the Company,
commented,

"While we expect one or two more companies to recapture their agreements with us
in the third quarter, the downsizing of the Company through the recapture and
termination of life and annuity reinsurance agreements is essentially complete.
During the second quarter, we were able to successfully negotiate the
termination of our largest guaranteed minimum death benefit contract, which
eliminated a drain on our earnings. With our downsizing essentially completed,
we are now shifting our focus toward the future.

"On August 5, 2003, we were notified by XL Life Ltd that it intends to recapture
its 50% quota share reinsurance contract with us. This caused us to expense
approximately $21 million of deferred acquisition costs associated with that
contract. We continue to discuss a comprehensive termination and settlement of
all of our reinsurance relationships with XL Life and its affiliates.

"We made further progress in reducing our unsecured letter of credit facility at
Citibank. Its exposure is now $29 million compared to $89 million in the summer
of 2002 when we first agreed to reduce or eliminate its exposure. While we were
not able to collateralize the credit facility by June 30, 2003, Citibank
continues to work with us. We expect further reductions to occur in the coming
quarters.

"We have also made significant progress in reducing future operating expenses.
We have reduced our staffing levels by 40%, and are now turning our efforts
toward normalizing our costs associated with outside professional services.

"We have completed an analysis of our remaining book of business, including
anticipated third quarter recaptures. After repositioning the investment
portfolio through the second half of 2003 we expect to see a small profit in
2004. With respect to the annuity business, which now consists of four accounts,
while we expect a slight profit, results from this segment have historically
been volatile.

"Overall, while we still face certain challenges, we have made great strides
toward stabilizing the Company and bringing our operating costs in line with the
Company's expected premium volume."

During the second quarter of 2003, the Company negotiated the recapture and
termination of several life reinsurance agreements, an annuity reinsurance
agreement and its largest guaranteed minimum death benefit reinsurance
agreement. As noted above, the Company was recently notified by XL Life that it
intends to recapture its 50% quota share reinsurance contract. In connection
with all these recaptures and terminations, the Company incurred losses of
approximately $(55,000,000), resulting from the write down of deferred
acquisition costs and cash payments made to cedents net of reserve releases
associated with the recaptures and terminations.

The net loss for the three months ended June 30, 2003 was also affected by
adverse claims experience under the Company's life and annuity reinsurance
agreements, contributing losses of $(11,400,000). Approximately $(8,500,000) of
the loss was related to life and annuity contracts that were recaptured in the
second quarter.

A reduction in investment income and losses on embedded derivatives also
contributed to the Company's net loss for three months ended June 30, 2003.

Unrealized gains on the Company's investments were $2,641,227 as of June 30,
2003 compared to $6,162,525 at December 31, 2002. The Company's investment
portfolio currently maintains an average credit quality of AA+. Cash used by
operations for the six month period ended June 30, 2003 was $86,149,537,
compared to cash provided by operations of $18,395,545 for the comparable period
ending June 30, 2002. At June 30, 2003, virtually all of the Company's invested
assets were pledged as collateral for the benefit of its U.S. based clients and
letter of credit providers. Book value per share at June 30, 2003 was $5.52
compared to $10.28 at December 31, 2002. Tangible book value, which is book
value excluding deferred acquisition costs was $1.44 per share at June 30, 2003.

LIFE SEGMENT RESULTS

Life segment loss for the three month period ended June 30, 2003 was
$(39,338,329), as compared with segment income of $6,451,436 for the comparable
prior period of 2002. The significant segment loss in the second quarter of 2003
is primarily due to a loss of approximately $(28,310,000) relating to the
recaptures of life reinsurance agreements by the Company's cedents, reflecting
the write down of deferred acquisition costs and cash payments made to cedents
net of reserve releases. Approximately $21,000,000 of this amount relates to the
anticipated recapture of the 50% quota share reinsurance agreement with XL Life.

Adverse mortality experience continued into the second quarter and losses of
$(8,480,000) were incurred on the Company's life reinsurance agreements.
Reinsurance agreements that have now been recaptured were responsible for
approximately $(6,200,000) of this loss.

Reduced investment income also contributed to the Company's net loss for three
months ended June 30, 2003. This reduced investment income is the result of a
lower yields and a lower level of invested assets resulting from recaptures. The
Company decided to maintain a high quality portfolio with a large cash position
for the first six months of 2003 to maximize the Company's ability to meet
collateral requirements of its cedents and letter of credit providers and
reduce financial market risk. The Company plans to reposition the portfolio in
the second half of 2003.


                                      -2-

ANNUITY SEGMENT RESULTS

Annuity segment loss was $(33,063,939) for the three month period ended June 30,
2003, as compared with a loss of $(29,790,379) for the three month period ended
June 30, 2002, reflecting a $(20,400,000) loss related to the termination of the
Company's largest guaranteed minimum death benefit reinsurance agreement,
$(2,900,000) of losses on that agreement during the quarter, a loss of
$(4,100,000) relating to the termination of another annuity reinsurance
agreement and embedded derivative losses of $(1,700,000).

Conference Call Information

August 15, 2003, 9:00 a.m. Eastern Time
719-457-2692 or 800-310-1961, Code # 250023

The call will be available for replay for seven days following the conference
call. The replay numbers are: 719-457-0820 or 888-203-1112, Code # 250023

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 reduce or otherwise satisfy the Company's collateral
obligations through novations, recaptures or otherwise; the outcome of pending
legal proceedings involving the Company; the Company's ability to obtain
acceptable 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 maintain the listing of its
common shares on the New York Stock Exchange; 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; the loss of a key
executive; 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, 2002, as
amended. 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
www.alre.bm/releases_2003.html. Certain financial information that has been made
available to financial analysts, and which may be discussed on the conference
call, is available in the "Financial Reports" section of the Company's website
at www.alre.bm/reports.html.

                                      -3-

                      ANNUITY AND LIFE RE (HOLDINGS), LTD.
                           CONSOLIDATED BALANCE SHEETS
                                 (U.S. DOLLARS)




                                                                 JUNE 30, 2003        DECEMBER 31, 2002
                                                                 -------------        -----------------
                                                                  (UNAUDITED)
                                                                                 
ASSETS
Cash and cash equivalents                                       $   139,793,317        $   152,930,908
Fixed income investments at fair value (amortized cost of
  $82,117,597 and $146,487,903 at June 30, 2003 and
  December 31, 2002)                                                 85,064,792            153,415,429
Funds withheld at interest                                          845,456,798          1,427,093,380
Accrued investment income                                             1,080,806              2,141,338
Receivable for reinsurance ceded                                     90,396,049             93,669,173
Other reinsurance receivables                                         6,947,154             25,025,453
Deferred policy acquisition costs                                   108,570,393            187,913,648
Other assets                                                          1,429,685              2,508,858
                                                                ---------------        ---------------
    TOTAL ASSETS                                                $ 1,278,738,994        $ 2,044,698,187
                                                                ===============        ===============

LIABILITIES

Reserves for future policy benefits                             $   235,720,387        $   269,619,809
Interest sensitive contracts liability                              815,685,167          1,443,143,080
Other reinsurance liabilities                                        71,046,391             51,139,164
Accounts payable and accrued expenses                                 9,565,313             12,459,423
                                                                ---------------        ---------------
    TOTAL LIABILITIES                                           $ 1,132,017,258        $ 1,776,361,476
                                                                ---------------        ---------------

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; 26,579,228 and 26,106,328 shares outstanding
  at June 30, 2003 and December 31, 2002)                            26,579,228             26,106,328
Additional paid-in capital                                          334,887,270            335,334,932
Notes receivable from stock sales                                          --               (1,626,493)
Unamortized stock grant compensation                                 (2,318,844)            (2,514,693)
Stock warrants                                                        1,250,000                   --
Accumulated other comprehensive income                                2,641,227              6,162,525
(Deficit)                                                          (216,317,145)           (95,125,888)
                                                                ---------------        ---------------
    TOTAL STOCKHOLDERS' EQUITY                                  $   146,721,736        $   268,336,711
                                                                ---------------        ---------------
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                  $ 1,278,738,994        $ 2,044,698,187
                                                                ===============        ===============



                                      -4-

                      ANNUITY AND LIFE RE (HOLDINGS), LTD.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                         (UNAUDITED AND IN U.S. DOLLARS)




                                                        FOR THE THREE MONTHS ENDED JUNE 30,     FOR THE SIX MONTHS ENDED JUNE 30,
                                                        -----------------------------------     ---------------------------------
                                                               2003               2002               2003               2002
                                                          -------------      -------------      -------------      -------------
                                                                                                       
REVENUES

Net premiums                                              $  58,563,721      $  92,065,743      $ 119,929,634      $ 170,072,634
Investment income, net of related expenses                    5,734,738         26,366,669         13,893,427         50,956,459
Net realized investment gains                                 4,896,176          1,837,672          6,560,044          1,515,964
Net change in fair value of embedded derivatives             (1,717,537)        (6,566,805)        12,037,322         (4,976,707)
Surrender fees and other revenues                             3,002,778          6,161,207          4,393,025         10,057,332
                                                          -------------      -------------      -------------      -------------
TOTAL REVENUES                                            $  70,479,876      $ 119,864,486      $ 156,813,452      $ 227,625,682
                                                          -------------      -------------      -------------      -------------

BENEFITS AND EXPENSES

Claims and policy benefits                                $  84,425,206      $  74,443,139      $ 159,514,646      $ 133,258,745
Interest credited to interest sensitive products              4,217,542         20,948,167          9,089,301         38,870,513
Policy acquisition costs and other insurance expenses        44,631,210         40,571,869         97,132,274         56,207,987
Collateral costs                                                   --            1,053,037               --            2,348,741
Operating expenses                                            5,922,358          3,142,272         12,268,488          6,800,064
                                                          -------------      -------------      -------------      -------------

TOTAL BENEFITS AND EXPENSES                               $ 139,196,316      $ 140,158,484      $ 278,004,709      $ 237,486,050
                                                          -------------      -------------      -------------      -------------

NET (LOSS)                                                $ (68,716,440)     $ (20,293,998)     $(121,191,257)     $  (9,860,368)
                                                          =============      =============      =============      =============


NET (LOSS) PER COMMON SHARE

    Basic                                                 $       (2.66)     $       (0.79)     $       (4.69)     $       (0.38)

    Diluted                                               $       (2.66)     $       (0.79)     $       (4.69)     $       (0.38)


                                      -5-

                      ANNUITY AND LIFE RE (HOLDINGS), LTD.
                                 SEGMENT RESULTS
                         (UNAUDITED AND IN U.S. DOLLARS)




                                             LIFE                  ANNUITY
THREE MONTHS ENDING JUNE 30, 2003         REINSURANCE            REINSURANCE             CORPORATE            CONSOLIDATED
                                        ---------------        ---------------        ---------------       ---------------
                                                                                                
Revenues                                $    57,507,429        $     7,766,799        $     5,205,648       $    70,479,876
Benefits and expenses                        96,845,758             40,830,738              1,519,821           139,196,316
                                        ---------------        ---------------        ---------------       ---------------

Segment (Loss) Income                   $   (39,338,329)       $   (33,063,939)       $     3,685,827       $   (68,716,440)
                                        ===============        ===============        ===============       ===============

Total Assets                            $   396,766,778        $   849,885,167        $    32,087,049       $ 1,278,738,994
                                        ===============        ===============        ===============       ===============

Fully Diluted Earnings per Share        $         (1.59)       $         (1.31)       $          0.24       $         (2.66)
                                        ===============        ===============        ===============       ===============

Book Value per share                                                                                        $          5.52
                                                                                                            ===============

THREE MONTHS ENDING JUNE 30, 2002

Revenues                                $    94,465,177        $    21,395,350        $     4,003,959       $   119,864,486
Benefits and expenses                        88,013,741             51,185,729                959,014           140,158,484
                                        ---------------        ---------------        ---------------       ---------------

Segment Income (Loss)                   $     6,451,436        $   (29,790,379)       $     3,044,945       $   (20,293,998)
                                        ===============        ===============        ===============       ===============

Total Assets                            $   605,018,193        $ 1,553,294,479        $   137,994,918       $ 2,296,307,590
                                        ===============        ===============        ===============       ===============

Fully Diluted Earnings per Share        $          0.26        $         (1.16)       $          0.11       $         (0.79)
                                        ===============        ===============        ===============       ===============


Book Value per share                                                                                        $         15.14
                                                                                                            ===============


SIX MONTHS ENDING JUNE 30, 2003

Revenues                                $   117,677,416        $    31,869,930        $     7,266,106       $   156,813,452
Benefits and expenses                       202,161,913             72,804,345              3,038,452           278,004,709
                                        ---------------        ---------------        ---------------       ---------------

Segment (Loss) Income                   $   (84,484,497)       $   (40,934,415)       $     4,227,655       $  (121,191,257)
                                        ===============        ===============        ===============       ===============

Fully Diluted Earnings per Share        $         (3.34)       $         (1.62)       $          0.26       $         (4.69)
                                        ===============        ===============        ===============       ===============

Book Value per share                                                                                        $          5.52
                                                                                                            ===============

SIX MONTHS ENDING JUNE 30, 2002

Revenues                                $   173,611,221        $    48,311,104        $     5,703,357       $   227,625,682
Benefits and expenses                       159,970,569             75,183,152              2,332,329           237,486,050
                                        ---------------        ---------------        ---------------       ---------------

Segment Income (Loss)                   $    13,640,652        $   (26,872,048)       $     3,371,028       $    (9,860,368)
                                        ===============        ===============        ===============       ===============

Fully Diluted Earnings per Share        $          0.54        $         (1.04)       $          0.12       $         (0.38)
                                        ===============        ===============        ===============       ===============

Book Value per share                                                                                        $         15.14
                                                                                                            ===============



                                      -6-

EX-99.2

                                                                               .
                                                                               .
                                                                               .
                                                                    EXHIBIT 99.2

                       ANNUITY & LIFE RE (HOLDINGS), LTD.
           QUARTERLY STATEMENT OF NET INCOME AND OTHER FINANCIAL DATA





                                                 6/30/2003              3/31/2003            12/31/2002            9/30/2002
                                                 ---------              ---------            ----------            ---------
REVENUES
                                                                                                     
Net Premiums                                   $  58,563,721         $  61,365,914         $  89,090,406         $  84,934,401
Investment Income                                  5,734,738             8,158,689            20,055,130            31,127,396
Realized gains(losses)                             4,896,176             1,663,868             8,935,951             9,297,351
Net Change in FV of ED's                          (1,717,537)           13,754,859            (7,591,580)          (13,277,823)
Other                                              3,002,778             1,390,247             2,549,743             3,549,362
                                               -------------         -------------         -------------         -------------
Total Revenues                                    70,479,876            86,333,577           113,039,650           115,630,687
                                               -------------         -------------         -------------         -------------
BENEFITS AND EXPENSES
Claims and Benefits                               84,425,206            75,089,440           127,768,226            91,381,831
Annuity Interest                                   4,217,542             4,871,759            14,154,754            18,345,349
Policy Acquisition &
    Insurance costs                               44,631,210            52,501,064            52,177,650            17,492,342
Financing Costs                                           --                    --             6,867,795             3,731,580
Operating Expenses                                 5,922,358             6,346,130            11,951,126             3,826,602
                                               -------------         -------------         -------------         -------------
Total Benefits and Expenses                      139,196,316           138,808,393           212,919,551           134,777,704
Cumulative Effect                                         --                    --                    --                    --
                                               -------------         -------------         -------------         -------------
NET (LOSS) INCOME                              $ (68,716,440)        $ (52,474,816)        $ (99,879,901)        $ (19,147,017)
                                               =============         =============         =============         =============
ADJUSTMENTS TO NET INCOME TO GET
  TO OPERATING INCOME, EXCLUDING
  TRANSAMERICA
Realized Gains & Losses                            4,896,176             1,663,868             8,935,951             9,297,351
Net Change in FV of ED's (3)                      (1,717,537)           13,754,859            (7,591,580)          (13,277,823)
Change in DAC Amort from ED's                             --            (6,953,904)              981,124             5,790,244
Transamerica                                        (102,918)              883,041            (2,799,031)                2,000
                                               -------------         -------------         -------------         -------------
OPERATING (LOSS) INCOME, X-TA                  $ (71,792,162)        $ (61,822,680)        $ (99,406,365)        $ (20,958,789)
                                               =============         =============         =============         =============
NET (LOSS) INCOME PER SHARE
Basic
  Shares                                          25,841,057            25,796,195            25,755,411            25,733,141
  Earnings                                     $       (2.66)        $       (2.03)        $       (3.88)        $       (0.74)
Diluted
  Shares                                          26,324,716            26,325,845            26,089,620            26,100,766
  Earnings                                     $       (2.66)        $       (2.03)        $       (3.88)        $       (0.74)
OPERATING (LOSS) INCOME, PER
   FULLY DILUTED SHARE X-TA (2)                $       (2.73)        $       (2.35)        $       (3.81)        $       (0.80)
LIFE INSURANCE IN FORCE
   Face Amount (000's)                         $  60,397,300         $  68,989,300         $ 117,511,100         $ 150,948,700
   Premium                                     $ 156,300,000         $ 261,541,595         $ 261,541,595         $ 325,350,000
ANNUITY DEPOSITS (000's)                       $     815,685         $     998,609         $   1,443,143         $   1,464,668
EXPENSE RATIO AS A % OF REVENUE,
  X-CHANGE IN FV OF EMBEDDED
  DERIVATIVES
  Current Quarter                                       8.20%                 8.74%                 9.91%                 2.97%
  YTD                                                   5.56%                 5.21%                 4.68%                 2.94%
BOOK VALUE PER SHARE (1)                       $        5.52         $        8.23         $       10.28         $       14.73






                                                 6/30/2002            3/31/2002                12/31/01             9/30/01
                                                 ---------            ---------                --------             -------
                                                                                                     
REVENUES

Net Premiums                                   $  92,065,743         $  78,006,891         $  69,837,478         $  66,813,664
Investment Income                                 26,366,669            24,589,790            24,194,090            24,239,602
Realized gains(losses)                             1,837,672              (321,708)             (195,145)            1,078,933
Net Change in FV of ED's                          (6,566,805)            1,590,098             8,596,369            (5,265,396)
Other                                              6,161,207             3,896,125             5,228,601             5,512,939
                                               -------------         -------------         -------------         -------------
Total Revenues                                   119,864,486           107,761,196           107,661,393            92,379,742
                                               -------------         -------------         -------------         -------------
BENEFITS AND EXPENSES
Claims and Benefits                               74,443,139            58,815,606            54,325,087            74,873,807
Annuity Interest                                  20,948,167            17,922,346            18,768,251            14,401,290
Policy Acquisition &
    Insurance costs                               40,571,869            15,636,118            31,359,643            43,306,421
Financing Costs                                    1,053,037             1,295,704             1,200,000                    --
Operating Expenses                                 3,142,272             3,657,792             3,719,608             2,478,698
                                               -------------         -------------         -------------         -------------
Total Benefits and Expenses                      140,158,484            97,327,566           109,372,589           135,060,216
Cumulative Effect                                         --                    --                    --                    --
                                               -------------         -------------         -------------         -------------
NET (LOSS) INCOME                              $ (20,293,998)        $  10,433,630         $  (1,711,196)        $ (42,680,474)
                                               =============         =============         =============         =============
ADJUSTMENTS TO NET INCOME TO GET
  TO OPERATING INCOME, EXCLUDING
  TRANSAMERICA
Realized Gains & Losses                            1,837,672              (321,708)             (195,145)            1,078,933
Net Change in FV of ED's (3)                      (6,566,805)            1,590,098             8,596,369            (5,265,396)
Change in DAC Amort from ED's                        903,739               598,981            (2,730,908)              269,009
Transamerica                                     (24,123,300)               (2,300)          (15,778,360)          (22,024,398)
                                               -------------         -------------         -------------         -------------
OPERATING (LOSS) INCOME, X-TA                  $   7,654,696         $   8,568,559         $   8,396,848         $ (16,738,622)
                                               =============         =============         =============         =============
NET (LOSS) INCOME PER SHARE
Basic
  Shares                                          25,722,016            25,705,328            25,695,578            25,683,328
  Earnings                                     $       (0.79)        $        0.41         $       (0.07)        $       (1.66)
Diluted
  Shares                                          26,755,190            26,968,835            27,813,418            28,534,245
  Earnings                                     $       (0.79)        $        0.39         $       (0.07)        $       (1.66)
OPERATING (LOSS) INCOME, PER
   FULLY DILUTED SHARE X-TA (2)                $        0.29         $        0.32         $        0.30         $       (0.59)
LIFE INSURANCE IN FORCE
   Face Amount (000's)                         $ 137,182,089         $ 129,238,000         $ 117,400,000         $ 104,000,000
   Premium                                     $ 333,800,000         $ 310,400,000         $ 240,100,000         $ 227,000,000
ANNUITY DEPOSITS (000S)                        $   1,464,394         $   1,503,144         $   1,516,796         $   1,629,042
EXPENSE RATIO AS A % OF REVENUE,
    X-CHANGE IN FV OF EMBEDDED
    DERIVATIVES
  Current Quarter                                       2.49%                 3.45%                 3.75%                 2.54%
  YTD                                                   2.92%                 3.45%                 3.19%                 2.97%
BOOK VALUE PER SHARE (1)                       $       15.21         $       15.78         $       15.65         $       15.91





                                                  6/30/01             3/31/01                12/31/00               9/30/00
                                                 ---------           ---------              ----------             ---------

                                                                                                     
REVENUES

Net Premiums                                   $  61,628,943         $  53,513,153         $  49,901,622         $  44,588,022
Investment Income                                 19,605,194            23,089,810            60,286,132            23,745,266
Realized gains(losses)                               320,629                25,621            (1,133,867)             (702,549)
Net Change in FV of ED's                           1,846,981              (148,927)                   --                    --
Other                                              4,644,690             3,133,471             1,829,461             1,689,451
                                               -------------         -------------         -------------         -------------
Total Revenues                                    88,046,437            79,613,128           110,883,348            69,320,190
                                               -------------         -------------         -------------         -------------
BENEFITS AND EXPENSES
Claims and Benefits                               45,201,447            41,624,668            33,913,597            36,040,180
Annuity Interest                                   7,797,407             8,291,470            43,692,693             5,322,440
Policy Acquisition &
    Insurance costs                               26,889,334            25,025,150            16,286,966            14,922,217
Financing Costs                                           --                    --                    --                    --
Operating Expenses                                 2,689,045             2,665,070             3,926,303             2,328,514
                                               -------------         -------------         -------------         -------------
Total Benefits and Expenses                       82,577,233            77,606,358            97,819,559            58,613,351
Cumulative Effect                                         --            (3,665,735)                   --                    --
                                               -------------         -------------         -------------         -------------
NET (LOSS) INCOME                              $   5,469,204         $  (1,658,965)        $  13,063,789         $  10,706,839
                                               =============         =============         =============         =============
ADJUSTMENTS TO NET INCOME TO GET
  TO OPERATING INCOME, EXCLUDING
  TRANSAMERICA
Realized Gains & Losses                              320,629                25,621            (1,133,867)             (702,549)
Net Change in FV of ED's (3)                       1,846,981            (3,814,662)                   --                    --
Change in DAC Amort from ED's                        257,264               884,451                    --                    --
Transamerica                                      (7,222,726)           (7,020,468)            2,842,156             4,120,238
                                               -------------         -------------         -------------         -------------
OPERATING (LOSS) INCOME, X-TA                  $  10,267,056         $   8,266,093         $  11,355,500         $   7,289,150
                                               =============         =============         =============         =============
NET (LOSS) INCOME PER SHARE
Basic
  Shares                                          25,591,746            25,501,331            25,499,999            25,499,999
  Earnings                                     $        0.21         $       (0.07)        $        0.51         $        0.42
Diluted
  Shares                                          28,211,313            27,960,971            27,676,641            27,419,525
  Earnings                                     $        0.19         $       (0.07)        $        0.47         $        0.39
OPERATING (LOSS) INCOME, PER
   FULLY DILUTED SHARE X-TA (2)                $        0.36         $        0.30         $        0.41         $        0.27
LIFE INSURANCE IN FORCE
   Face Amount (000's)                         $  91,105,000         $  83,205,000         $  77,016,000         $  61,419,000
   Premium                                     $ 203,600,000         $ 184,900,000         $ 159,000,000         $ 140,600,000
ANNUITY DEPOSITS (000's)                       $   1,550,816         $   1,553,352         $   1,595,129         $   1,480,004
EXPENSE RATIO AS A % OF REVENUE,
  X-CHANGE IN FV OF EMBEDDED
  DERIVATIVES
  Current Quarter                                       3.12%                 3.34%                 3.54%                 3.36%
  YTD                                                   3.23%                 3.34%                 3.39%                 3.30%
BOOK VALUE PER SHARE (1)                       $       17.36         $       17.33         $       17.13         $       16.43






                                                   6/30/00              3/31/00                12/31/99               9/30/99
                                                  ---------            ---------              ----------             ---------
                                                                                                     
REVENUES

Net Premiums                                   $  37,684,372         $  36,230,006         $  43,114,344         $ 21,101,366
Investment Income                                 25,819,232            26,797,697            26,724,547           19,528,879
Realized gains(losses)                            (2,417,880)             (562,825)             (597,464)            (793,008)
Net Change in FV of ED's                                  --                    --                    --                   --
Other                                              1,589,357             1,807,601             1,575,505            1,250,961
                                               -------------         -------------         -------------         ------------
Total Revenues                                    62,675,081            64,272,479            70,816,932           41,088,198
                                               -------------         -------------         -------------         ------------
BENEFITS AND EXPENSES
Claims and Benefits                               29,898,304            32,958,111            31,447,754           17,232,038
Annuity Interest                                   8,063,576             8,763,595             9,724,666            4,762,521
Policy Acquisition &
    Insurance costs                               14,919,657            12,856,683            16,751,414            9,052,163
Financing Costs                                           --                    --                    --                   --
Operating Expenses                                 2,165,313             1,991,214             3,133,536            1,326,416
                                               -------------         -------------         -------------         ------------
Total Benefits and Expenses                       55,046,850            56,569,603            61,057,370           32,373,138
Cumulative Effect                                         --                    --                    --                   --
                                               -------------         -------------         -------------         ------------
NET (LOSS) INCOME                              $   7,628,231         $   7,702,876         $   9,759,562         $  8,715,060
                                               =============         =============         =============         ============
ADJUSTMENTS TO NET INCOME TO GET
  TO OPERATING INCOME, EXCLUDING
  TRANSAMERICA
Realized Gains & Losses                           (2,417,880)             (562,825)             (597,464)            (793,008)
Net Change in FV of ED's (3)                              --                    --                    --                   --
Change in DAC Amort from ED's                             --                    --                    --                   --
Transamerica                                       4,011,938             4,008,208             3,446,911            3,429,323
                                               -------------         -------------         -------------         ------------
OPERATING (LOSS) INCOME, X-TA                  $   6,034,173         $   4,257,493         $   6,910,115         $  6,078,745
                                               =============         =============         =============         ============
NET (LOSS) INCOME PER SHARE
Basic
  Shares                                          25,499,999            25,499,999            25,499,999           25,499,999
  Earnings                                     $        0.30         $        0.30         $        0.38         $       0.34
Diluted
  Shares                                          27,311,063            27,443,307            27,369,033           27,218,541
  Earnings                                     $        0.28         $        0.28         $        0.36         $       0.32
OPERATING (LOSS) INCOME, PER
   FULLY DILUTED SHARE X-TA (2)                $        0.22         $        0.16         $        0.25         $       0.22
LIFE INSURANCE IN FORCE
   Face Amount (000's)                         $  55,467,000         $  52,654,000         $  45,407,000         $ 36,558,000
   Premium                                     $ 136,700,000         $ 131,200,000         $ 110,000,000         $ 79,200,000
ANNUITY DEPOSITS (000's)                       $   1,569,619         $   1,651,256         $   1,603,383         $  1,625,983
EXPENSE RATIO AS A % OF REVENUE,
  X-CHANGE IN FV OF EMBEDDED
  DERIVATIVES
  Current Quarter                                       3.45%                 3.10%                 4.42%                3.23%
  YTD                                                   3.27%                 3.10%                 4.09%                3.89%
BOOK VALUE PER SHARE (1)                       $       16.02         $       15.64         $       15.37         $      15.18







                                          6/30/99             3/31/99           12/31/98            9/30/98            6/30/98
                                          -------             -------           --------            -------            -------
                                                                                                      
REVENUES

Net Premiums                           $ 18,372,285         $18,247,102        $17,878,140        $10,065,750                 --
Investment Income                        20,677,325          18,159,060         14,464,369          5,366,566          4,299,615
Realized gains(losses)                     (157,755)            263,458          1,505,617          1,018,990            148,674
Net Change in FV of ED's                         --                  --                 --                 --                 --
Other                                       149,262             239,701            311,243                 --                 --
                                       ------------         -----------        -----------        -----------        -----------
Total Revenues                           39,041,117          36,909,321         34,159,369         16,451,306          4,448,289
                                       ------------         -----------        -----------        -----------        -----------
BENEFITS AND EXPENSES
Claims and Benefits                      15,507,499          15,765,869         14,897,615          8,399,500                 --
Annuity Interest                          3,948,668           3,876,829          1,989,000                 --                 --
Policy Acquisition &
    Insurance costs                       8,991,772           7,405,339          6,341,697            200,175                 --
Financing Costs                                  --                  --                 --                 --                 --
Operating Expenses                        1,846,935           1,378,915          1,705,631          1,191,465            873,278
                                       ------------         -----------        -----------        -----------        -----------
Total Benefits and Expenses              30,294,874          28,426,952         24,933,943          9,791,140            873,278
Cumulative Effect                                --                  --                 --                 --                 --
                                       ------------         -----------        -----------        -----------        -----------
NET (LOSS) INCOME                      $  8,746,243         $ 8,482,369        $ 9,225,426        $ 6,660,166        $ 3,575,011
                                       ============         ===========        ===========        ===========        ===========
ADJUSTMENTS TO NET INCOME TO GET
  TO OPERATING INCOME, EXCLUDING
  TRANSAMERICA
Realized Gains & Losses                    (157,755)            263,458          1,505,617          1,018,990            148,674
Net Change in FV of ED's (3)                     --                  --                 --                 --                 --
Change in DAC Amort from ED's                    --                  --                 --                 --                 --
Transamerica                              4,062,300           2,653,060          2,242,565                 --                 --
                                       ------------         -----------        -----------        -----------        -----------
OPERATING (LOSS) INCOME, X-TA          $  4,841,698         $ 5,565,851        $ 5,477,244        $ 5,641,176        $ 3,426,337
                                       ============         ===========        ===========        ===========        ===========
NET (LOSS) INCOME PER SHARE
Basic
  Shares                                 25,499,999          25,499,999         25,499,999         25,499,999         21,016,483
  Earnings                             $       0.34         $      0.33        $      0.36        $      0.26        $      0.17
Diluted
  Shares                                 27,114,771          27,181,315         27,373,430         26,629,834         22,405,132
  Earnings                             $       0.32         $      0.31        $      0.34        $      0.25        $      0.16
OPERATING (LOSS) INCOME, PER
   FULLY DILUTED SHARE X-TA (2)        $       0.18         $      0.20        $      0.20        $      0.21        $      0.15
LIFE INSURANCE IN FORCE
   Face Amount (000's)                 $ 31,229,000         $29,960,000        $22,538,000        $15,000,000                 --
   Premium                             $ 73,700,000         $73,000,000        $54,900,000        $40,000,000                 --
ANNUITY DEPOSITS (000's)               $  1,607,049         $ 1,510,639        $ 1,283,676        $ 1,057,702                 --
EXPENSE RATIO AS A % OF REVENUE,
   X-CHANGE IN FV OF EMBEDDED
   DERIVATIVES
  Current Quarter                              4.73%               3.74%              4.99%              7.24%             19.63%
  YTD                                          4.25%               3.74%              6.85%              9.88%             19.63%
BOOK VALUE PER SHARE (1)               $      14.95         $     14.88        $     14.72        $     14.55        $     14.03


(1)   Computed as reported BV divided by outstanding shares.

(2)   Utilizes fully diluted shares even if they are anti-dilutive.

(3)   Includes cumulative effect of a change in accounting principle.



                               ANNUITY & LIFE RE
         SEGMENT PERFORMANCE INFORMATION, RESTATED FOR FAS 133 AND LMIG



                                                                                 DECEMBER 31, 2000
                                                -----------------------------------------------------------------------------------
LIFE REINSURANCE                                FIRST QUARTER          SECOND QUARTER         THIRD QUARTER          FOURTH QUARTER
- ----------------                                -------------          --------------         -------------          --------------
                                                                                                         
Life premiums ...............................       34,690,006             36,324,372             42,548,022             47,875,622
Net investment income .......................        1,466,942              1,605,164              1,498,751              1,467,938
                                                --------------         --------------         --------------         --------------
Total Revenues ..............................       36,156,948             37,929,536             44,046,773             49,343,560
                                                --------------         --------------         --------------         --------------

Benefits ....................................       32,038,096             28,971,653             35,454,847             32,796,883
Expenses ....................................        2,424,402              4,860,553              4,196,248              7,764,144
Financing costs .............................             --                     --                     --                     --
                                                --------------         --------------         --------------         --------------
Total Expenses ..............................       34,462,497             33,832,206             39,651,095             40,561,027
                                                --------------         --------------         --------------         --------------

Life Segment Income (Loss) ..................        1,694,451              4,097,330              4,395,678              8,782,533
                                                ==============         ==============         ==============         ==============

Invested assets .............................       93,223,039             92,321,040             85,898,474             98,719,458
                                                --------------         --------------         --------------         --------------

Total Assets ................................      132,550,727            241,491,920            269,145,189            291,657,595
                                                ==============         ==============         ==============         ==============

Policyholder benefit liabilities ............       45,067,769            151,407,586            168,560,545            172,096,303
                                                --------------         --------------         --------------         --------------

Total Liabilities ...........................       51,835,227            157,470,420            179,023,689            179,720,125
                                                ==============         ==============         ==============         ==============

Shareholders equity .........................       80,715,500             84,021,500             90,121,500            111,937,470
                                                ==============         ==============         ==============         ==============

Segment Return on Equity - Annualized .......              9.0%                  19.9%                  20.2%                  34.8%
                                                ==============         ==============         ==============         ==============

ROR .........................................              4.7%                  10.8%                  10.0%                  17.8%
                                                ==============         ==============         ==============         ==============

ANNUITY REINSURANCE

Annuity premiums and fees ...................        3,347,601              2,949,357              3,729,451              3,855,461
Net investment income .......................       21,241,480             19,889,025             17,917,534             54,736,268
                                                --------------         --------------         --------------         --------------
Total Revenues ..............................       24,589,081             22,838,382             21,646,985             58,591,729
                                                --------------         --------------         --------------         --------------

Annuity Benefits ............................        9,683,610              8,990,227              5,907,773             44,809,407
Expenses ....................................       11,176,398             10,884,127             11,616,811             10,125,081
                                                --------------         --------------         --------------         --------------
Total Expenses ..............................       20,860,009             19,874,355             17,524,584             54,934,488
                                                --------------         --------------         --------------         --------------

Annuity Segment Income (Loss), before
          cumulative effect of FAS 133 ......        3,729,072              2,964,027              4,122,401              3,657,241
Cumulative effect of FAS 133 ................             --                     --                     --                     --
                                                --------------         --------------         --------------         --------------

Annuity Segment Income (Loss) ...............        3,729,072              2,964,027              4,122,401              3,657,241
                                                ==============         ==============         ==============         ==============

Invested assets .............................    1,549,411,492          1,484,681,045          1,403,461,868          1,499,613,767
                                                --------------         --------------         --------------         --------------

Total Assets ................................    1,724,828,149          1,643,051,707          1,555,032,266          1,675,647,751
                                                ==============         ==============         ==============         ==============

Interest sensitive contract liabilities .....    1,652,943,649          1,571,873,207          1,482,253,766          1,597,985,221
                                                --------------         --------------         --------------         --------------

Total Liabilities ...........................    1,652,943,649          1,571,873,207          1,482,253,766          1,597,985,221
                                                ==============         ==============         ==============         ==============

Shareholders equity .........................       71,884,500             71,178,500             72,778,500             77,662,530
                                                ==============         ==============         ==============         ==============

Segment Return on Equity - Annualized .......             20.6%                  16.6%                  22.9%                  19.4%
                                                ==============         ==============         ==============         ==============

Seg inc/Ave. Policyholder Liab - Annualized .              0.9%                   0.7%                   1.1%                   0.9%
                                                ==============         ==============         ==============         ==============





                                                                                 DECEMBER 31, 2001
                                                -----------------------------------------------------------------------------------
LIFE REINSURANCE                                FIRST QUARTER          SECOND QUARTER           THIRD QUARTER        FOURTH QUARTER
- ----------------                                -------------          --------------           -------------        --------------
                                                                                                         
Life premiums ...............................      51,003,153              59,308,943              63,923,667            67,542,477
Net investment income .......................       1,399,958               1,704,157               2,027,692             2,877,741
                                               --------------          --------------          --------------        --------------
Total Revenues ..............................      52,403,111              61,013,100              65,951,358            70,420,219
                                               --------------          --------------          --------------        --------------

Benefits ....................................      40,361,817              44,033,754              73,371,548            53,154,853
Expenses ....................................       7,907,171               9,602,197              13,004,348             9,421,985
Financing costs .............................            --                      --                      --               1,200,000
                                               --------------          --------------          --------------        --------------
Total Expenses ..............................      48,268,988              53,635,950              86,375,896            63,776,839
                                               --------------          --------------          --------------        --------------

Life Segment Income (Loss) ..................       4,134,123               7,377,149             (20,424,537)            6,643,380
                                               ==============          ==============          ==============        ==============

Invested assets .............................      98,053,528             126,400,607             151,311,682           264,434,485
                                               --------------          --------------          --------------        --------------

Total Assets ................................     304,343,877             333,362,942             401,683,367           538,181,649
                                               ==============          ==============          ==============        ==============

Policyholder benefit liabilities ............     176,221,387             187,984,169             212,609,621           221,145,594
                                               --------------          --------------          --------------        --------------

Total Liabilities ...........................     184,226,407             203,710,642             255,380,367           375,485,898
                                               ==============          ==============          ==============        ==============

Shareholders equity .........................     120,117,470             129,652,300             146,303,000           162,695,751
                                               ==============          ==============          ==============        ==============

Segment Return on Equity - Annualized .......            14.3%                   23.6%                 -59.2%                  17.2%
                                               ==============          ==============          ==============        ==============

ROR .........................................             7.9%                   12.1%                 -31.0%                   9.4%
                                               ==============          ==============          ==============        ==============

ANNUITY REINSURANCE

Annuity premiums and fees ...................       5,643,471               6,964,689               8,402,936             7,523,602
Net investment income .......................      17,894,195              15,797,730              13,622,109            27,321,433
                                               --------------          --------------          --------------        --------------
Total Revenues ..............................      23,537,665              22,762,419              22,025,045            34,845,035
                                               --------------          --------------          --------------        --------------

Annuity Benefits ............................       9,554,321               8,965,100              15,903,549            19,938,485
Expenses ....................................      18,265,791              18,463,065              31,507,297            24,055,706
                                               --------------          --------------          --------------        --------------
Total Expenses ..............................      27,820,111              27,428,166              47,410,846            43,994,191
                                               --------------          --------------          --------------        --------------

Annuity Segment Income (Loss), before
      cumulative effect of FAS 133 ..........      (4,282,446)             (4,665,746)            (25,385,802)           (9,149,155)
Cumulative effect of FAS 133 ................      (3,665,735)                     --                      --                    --
                                               --------------          --------------          --------------        --------------

Annuity Segment Income (Loss) ...............      (7,948,181)             (4,665,746)            (25,385,802)           (9,149,155)
                                               ==============          ==============          ==============        ==============

Invested assets .............................   1,458,736,475           1,456,392,079           1,562,593,817         1,492,722,891
                                               --------------          --------------          --------------        --------------

Total Assets ................................   1,632,014,571           1,630,980,947           1,713,508,054         1,602,020,485
                                               ==============          ==============          ==============        ==============

Interest sensitive contract liabilities .....   1,556,532,041           1,553,833,247           1,631,111,054         1,520,316,236
                                               --------------          --------------          --------------        --------------

Total Liabilities ...........................   1,556,532,041           1,553,833,247           1,631,111,054         1,520,316,236
                                               ==============          ==============          ==============        ==============

Shareholders equity .........................      75,482,530              77,147,700              82,397,000            81,704,249
                                               ==============          ==============          ==============        ==============

Segment Return on Equity - Annualized .......           -22.4%                  -24.5%                 -127.3%                -44.6%
                                               ==============          ==============          ==============        ==============

Seg inc/Ave. Policyholder Liab - Annualized .            -1.1%                   -1.2%                   -6.4%                 -2.3%
                                               ==============          ==============          ==============        ==============





                                                                               DECEMBER 31, 2002
                                               -----------------------------------------------------------------------------------
LIFE REINSURANCE                               FIRST QUARTER          SECOND QUARTER          THIRD QUARTER         FOURTH QUARTER
- ----------------                               -------------          --------------          -------------         --------------
                                                                                                        
Life premiums ..............................      75,163,415             89,431,564              82,304,042             86,281,988
Net investment income ......................       3,982,629              5,033,613               4,404,125              5,581,802
                                              --------------         --------------          --------------         --------------
Total Revenues .............................      79,146,044             94,465,177              86,708,167             91,863,790
                                              --------------         --------------          --------------         --------------

Benefits ...................................      57,176,440             71,565,974              77,925,339            111,461,759
Expenses ...................................      13,447,202             15,280,408              14,990,085             44,569,012
Financing costs ............................       1,295,704              1,053,037               3,731,580              6,867,794
                                              --------------         --------------          --------------         --------------
Total Expenses .............................      71,919,346             87,899,418              96,647,003            162,898,564
                                              --------------         --------------          --------------         --------------

Life Segment Income (Loss) .................       7,226,698              6,565,759              (9,938,836)           (71,034,773)
                                              ==============         ==============          ==============         ==============

Invested assets ............................     275,563,872            302,098,565             340,711,970            303,207,491
                                              --------------         --------------          --------------         --------------

Total Assets ...............................     566,428,888            605,018,193             657,422,016            528,577,026
                                              ==============         ==============          ==============         ==============

Policyholder benefit liabilities ...........     234,131,629            254,695,355             280,915,909            269,619,809
                                              --------------         --------------          --------------         --------------

Total Liabilities ..........................     388,658,888            419,318,193             452,822,016            322,877,026
                                              ==============         ==============          ==============         ==============

Shareholders equity ........................     177,770,000            185,700,000             204,600,000            205,700,000
                                              ==============         ==============          ==============         ==============

Segment Return on Equity - Annualized ......            17.0%                  14.5%                  -20.4%                -138.5%
                                              ==============         ==============          ==============         ==============

ROR ........................................             9.1%                   7.0%                  -11.5%                 -77.3%
                                              ==============         ==============          ==============         ==============

ANNUITY REINSURANCE

Annuity premiums and fees ..................       6,739,601              8,795,385               6,179,721              5,358,161
Net investment income ......................      20,176,153             12,599,964              12,355,845              6,222,901
                                              --------------         --------------          --------------         --------------
Total Revenues .............................      26,915,754             21,395,350              18,535,566             11,581,062
                                              --------------         --------------          --------------         --------------

Annuity Benefits ...........................      19,561,512             23,825,333              31,801,841             30,461,221
Expenses ...................................       4,417,842             27,307,389               4,987,368             14,311,626
                                              --------------         --------------          --------------         --------------
Total Expenses .............................      23,979,353             51,132,722              36,789,209             44,772,847
                                              --------------         --------------          --------------         --------------

Annuity Segment Income (Loss), before
      cumulative effect of FAS 133 .........       2,936,401            (29,737,373)            (18,253,643)           (33,191,785)
Cumulative effect of FAS 133 ...............            --                     --                      --                     --
                                              --------------         --------------          --------------         --------------

Annuity Segment Income (Loss) ..............       2,936,401            (29,737,373)            (18,253,643)           (33,191,785)
                                              ==============         ==============          ==============         ==============

Invested assets ............................   1,483,747,426          1,471,125,940           1,462,326,418          1,446,104,341
                                              --------------         --------------          --------------         --------------

Total Assets ...............................   1,588,375,551          1,553,294,479           1,549,867,709          1,527,343,080
                                              ==============         ==============          ==============         ==============

Interest sensitive contract liabilities ....   1,505,945,551          1,467,194,479           1,464,667,709          1,443,143,080
                                              --------------         --------------          --------------         --------------

Total Liabilities ..........................   1,505,945,551          1,467,194,479           1,464,667,709          1,443,143,080
                                              ==============         ==============          ==============         ==============

Shareholders equity ........................      82,430,000             86,100,000              85,200,000             84,200,000
                                              ==============         ==============          ==============         ==============

Segment Return on Equity - Annualized ......            14.3%                -141.2%                  -85.2%                -156.7%
                                              ==============         ==============          ==============         ==============

Seg inc/Ave. Policyholder Liab - Annualized              0.8%                  -8.0%                   -5.0%                  -9.1%
                                              ==============         ==============          ==============         ==============






                                                                                        DECEMBER 31, 2003
                                                            -----------------------------------------------------------------------
LIFE REINSURANCE                                            FIRST QUARTER         SECOND QUARTER     THIRD QUARTER   FOURTH QUARTER
- ----------------                                            -------------         --------------     -------------   --------------

                                                                                                         
Life premiums .....................................            58,575,661             56,053,471
Net investment income .............................             1,594,325              1,453,958
                                                           --------------         --------------     --------------   --------------
Total Revenues ....................................            60,169,987             57,507,429
                                                           --------------         --------------     --------------   --------------

Benefits ..........................................            68,573,550             58,156,608
Expenses ..........................................            36,742,604             38,689,150
Financing costs ...................................                  --                     --
                                                           --------------         --------------     --------------   --------------
Total Expenses ....................................           105,316,155             96,845,758
                                                           --------------         --------------     --------------   --------------

Life Segment Income (Loss) ........................           (45,146,168)           (39,338,329)
                                                           ==============         ==============     ==============   ==============

Invested assets ...................................           256,932,453            242,567,939
                                                           --------------         --------------     --------------   --------------

Total Assets ......................................           446,513,145            396,766,778
                                                           ==============         ==============     ==============   ==============

Policyholder benefit liabilities ..................           256,908,708            235,720,387
                                                           --------------         --------------     --------------   --------------

Total Liabilities .................................           346,213,145            306,766,778
                                                           ==============         ==============     ==============   ==============

Shareholders equity ...............................           100,300,000             90,000,000
                                                           ==============         ==============     ==============   ==============

Segment Return on Equity - Annualized .............                -139.2%                -165.4%
                                                           ==============         ==============     ==============   ==============

ROR ...............................................                 -75.0%                 -68.4%
                                                           ==============         ==============     ==============   ==============

ANNUITY REINSURANCE

Annuity premiums and fees .........................             4,180,500              5,513,028
Net investment income .............................            19,922,631              2,253,771
                                                           --------------         --------------     --------------   --------------
Total Revenues ....................................            24,103,131              7,766,799
                                                           --------------         --------------     --------------   --------------

Annuity Benefits ..................................            11,387,649             30,486,140
Expenses ..........................................            20,585,958             10,344,598
                                                           --------------         --------------     --------------   --------------
Total Expenses ....................................            31,973,607             40,830,738
                                                           --------------         --------------     --------------   --------------

Annuity Segment Income (Loss), before
                     cumulative effect of FAS 133 .            (7,870,476)           (33,063,939)
Cumulative effect of FAS 133 ......................                    --                     --
                                                           --------------         --------------     --------------   --------------

Annuity Segment Income (Loss) .....................            (7,870,476)           (33,063,939)
                                                           ==============         ==============     ==============   ==============

Invested assets ...................................           984,719,779            798,170,410
                                                           --------------         --------------     --------------   --------------

Total Assets ......................................         1,043,908,700            849,885,167
                                                           ==============         ==============     ==============   ==============

Interest sensitive contract liabilities ...........           998,608,700            815,685,167
                                                           --------------         --------------     --------------   --------------

Total Liabilities .................................           998,608,700            815,685,167
                                                           ==============         ==============     ==============   ==============

Shareholders equity ...............................            45,300,000             34,200,000
                                                           ==============         ==============     ==============   ==============

Segment Return on Equity - Annualized .............                 -57.7%                -332.7%
                                                           ==============         ==============     ==============   ==============

Seg inc/Ave. Policyholder Liab - Annualized .......                  -2.6%                 -11.7%
                                                           ==============         ==============     ==============   ==============


                              ANNUITY & LIFE RE
                        SEGMENT PERFORMANCE INFORMATION



                                                                            DECEMBER 31, 2000
                                            ----------------------------------------------------------------------------------
                                            FIRST QUARTER         SECOND QUARTER         THIRD QUARTER          FOURTH QUARTER
                                            -------------         --------------         -------------          --------------
                                                                                                    
CORPORATE

Net investment income, including realized
     capital gains and (losses) .........        3,526,450              1,907,163              3,626,432              2,948,059
Expenses ................................        1,247,097              1,340,290              1,437,672              2,324,044
                                            --------------         --------------         --------------         --------------

Net income ..............................        2,279,353                566,874              2,188,761                624,015
                                            ==============         ==============         ==============         ==============

Invested assets .........................      244,947,333            254,993,063            259,775,025            253,596,024
                                            --------------         --------------         --------------         --------------

Total Assets ............................      251,794,745            258,277,877            264,999,434            257,381,545
                                            ==============         ==============         ==============         ==============

Total Liabilities .......................        5,441,098              4,595,910              5,320,890              5,765,769
                                            ==============         ==============         ==============         ==============

Shareholders equity .....................      246,353,647            253,681,967            259,678,544            251,615,776
                                            ==============         ==============         ==============         ==============

Segment Return on Equity - Annualized ...              3.7%                  0.9%                   3.4%                   1.0%
                                            ==============        ==============         ==============         ==============

CONSOLIDATED

Net premiums and fees ...................       38,037,607             39,273,729             46,277,473             51,731,083
Net investment income, including realized
     capital gains and (losses) .........       26,234,872             23,401,352             23,042,717             59,152,265
                                            --------------         --------------         --------------         --------------
Total Revenues ..........................       64,272,479             62,675,081             69,320,190            110,883,348
                                            --------------         --------------         --------------         --------------

Policyholder Benefits ...................       41,721,706             37,961,880             41,362,620             77,606,290
Expenses ................................       14,847,897             17,084,970             17,250,731             20,213,269
Financing costs .........................              --                     --                     --                     --
                                            --------------         --------------         --------------         --------------
Total benefits and expenses .............       56,569,603             55,046,850             58,613,351             97,819,559
                                            --------------         --------------         --------------         --------------

Net income (loss), before cumulative
    effect of FAS 133 ...................        7,702,876              7,628,231             10,706,839             13,063,789
Cumulative effect of FAS 133 ............               --                     --                     --                     --
                                            --------------         --------------         --------------         --------------

Net Income (Loss) .......................        7,702,876              7,628,231             10,706,839             13,063,789
                                            ==============         ==============         ==============         ==============

Invested assets, including funds withheld    1,887,581,864          1,831,995,148          1,749,135,367          1,851,929,249
                                            --------------         --------------         --------------         --------------

Total Assets ............................    2,109,173,621          2,142,821,504          2,089,176,889          2,224,686,891
                                            ==============         ==============         ==============         ==============

Policyholder benefit and interest
    sensitive contract liabilities ......    1,698,011,418          1,723,280,793          1,650,814,311          1,770,081,524
                                            --------------         --------------         --------------         --------------

Total Liabilities .......................    1,710,219,974          1,733,939,537          1,666,598,345          1,783,471,115
                                            ==============         ==============         ==============         ==============

Shareholders equity .....................      398,953,647            408,881,967            422,578,544            441,215,776
                                            ==============         ==============         ==============         ==============

Segment Return on Equity - Annualized ...              7.8%                   7.6%                  10.3%                  12.1%
                                            ==============         ==============         ==============         ==============





                                                                         DECEMBER 31, 2001
                                            ------------------------------------------------------------------------------------
                                            FIRST QUARTER          SECOND QUARTER         THIRD QUARTER           FOURTH QUARTER
                                            -------------          --------------         -------------           --------------
                                                                                                      
CORPORATE

Net investment income, including realized
     capital gains and (losses) .........       3,672,352               4,270,917              4,403,338               2,396,139
Expenses ................................       1,517,258               1,513,117              1,273,474               1,601,558
                                            -------------          --------------         --------------          --------------

Net income ..............................       2,155,093               2,757,800              3,129,864                 794,581
                                            =============          ==============         ==============          ==============

Invested assets .........................     258,975,192             261,316,480            213,182,175             156,312,422
                                            -------------          --------------         --------------          --------------

Total Assets ............................     262,947,177             270,959,673            218,103,053             170,570,456
                                            =============          ==============         ==============          ==============

Total Liabilities .......................       5,378,378              10,742,871             18,157,941              12,781,614
                                            =============          ==============         ==============          ==============

Shareholders equity .....................     257,568,799             260,216,802            199,945,112             157,788,842
                                            =============          ==============         ==============          ==============

Segment Return on Equity - Annualized ...             3.4%                    4.3%                   5.4%                    1.8%
                                            =============          ==============         ==============          ==============

CONSOLIDATED

Net premiums and fees ...................      56,646,624              66,273,633             72,326,603              75,066,079
Net investment income, including realized
     capital gains and (losses) .........      22,966,504              21,772,804             20,053,139              32,595,314
                                            -------------          --------------         --------------          --------------
Total Revenues ..........................      79,613,128              88,046,437             92,379,742             107,661,393
                                            -------------          --------------         --------------          --------------

Policyholder Benefits ...................      49,916,138              52,998,854             89,275,097              73,093,339
Expenses ................................      27,690,220              29,578,379             45,785,119              35,079,249
Financing costs .........................              --                      --                     --               1,200,000
                                            -------------          --------------         --------------          --------------
Total benefits and expenses .............      77,606,358              82,577,233            135,060,216             109,372,588
                                            -------------          --------------         --------------          --------------

Net income (loss), before cumulative
    effect of FAS 133 ...................       2,006,770               5,469,204            (42,680,474)             (1,711,195)
Cumulative effect of FAS 133 ............      (3,665,735)                     --                     --                      --
                                            -------------          --------------         --------------          --------------

Net Income (Loss) .......................      (1,658,965)              5,469,204            (42,680,474)             (1,711,195)
                                            =============          ==============         ==============          ==============

Invested assets, including funds withheld   1,815,765,195           1,844,109,166          1,927,087,675           1,913,469,798
                                            -------------          --------------         --------------          --------------

Total Assets ............................   2,199,305,625           2,235,303,562          2,333,294,474           2,310,772,590
                                            =============          ==============         ==============          ==============

Policyholder benefit and interest
    sensitive contract liabilities ......   1,732,753,428           1,741,817,416          1,843,720,675           1,741,461,830
                                            -------------          --------------         --------------          --------------

Total Liabilities .......................   1,746,136,826           1,768,286,760          1,904,649,362           1,908,583,748
                                            =============          ==============         ==============          ==============

Shareholders equity .....................     453,168,799             467,016,802            428,645,112             402,188,842
                                            =============          ==============         ==============          ==============

Segment Return on Equity - Annualized ...             1.8%                    4.8%                 -38.1%                   -1.6%
                                            =============          ==============         ==============          ==============






                                                                             DECEMBER 31, 2002
                                            ------------------------------------------------------------------------------------
                                            FIRST QUARTER         SECOND QUARTER          THIRD QUARTER           FOURTH QUARTER
                                            -------------         --------------          -------------           --------------
                                                                                                      
CORPORATE

Net investment income, including realized
     capital gains and (losses) .........       1,699,398              4,003,959              10,386,955               9,594,797
Expenses ................................       1,428,867              1,126,344               1,341,492               5,248,138
                                            -------------         --------------          --------------          --------------

Net income ..............................         270,532              2,877,615               9,045,463               4,346,658
                                            =============         ==============          ==============          ==============

Invested assets .........................     155,554,854            131,230,105              87,295,212             (15,872,115)
                                            -------------         --------------          --------------          --------------

Total Assets ............................     161,250,407            137,994,918             113,368,735             (11,221,919)
                                            =============         ==============          ==============          ==============

Total Liabilities .......................      15,698,416             18,604,634              23,926,436              10,341,370
                                            =============         ==============          ==============          ==============

Shareholders equity .....................     145,551,991            119,390,284              89,442,299             (21,563,289)
                                            =============         ==============          ==============          ==============

Segment Return on Equity - Annualized ...             0.7%                   8.7%                   34.7%                   51.2%
                                            =============         ==============          ==============          ==============

CONSOLIDATED

Net premiums and fees ...................      81,903,016             98,226,950              88,483,763              91,640,149
Net investment income, including realized
     capital gains and (losses) .........      25,858,180             21,637,536              27,146,925              21,399,501
                                            -------------         --------------          --------------          --------------
Total Revenues ..........................     107,761,196            119,864,485             115,630,688             113,039,650
                                            -------------         --------------          --------------          --------------

Policyholder Benefits ...................      76,737,951             95,391,307             109,727,180             141,922,980
Expenses ................................      19,293,910             43,714,140              21,318,944              64,128,777
Financing costs .........................       1,295,704              1,053,037               3,731,580               6,867,794
                                            -------------         --------------          --------------          --------------
Total benefits and expenses .............      97,327,566            140,158,484             134,777,704             212,919,551
                                            -------------         --------------          --------------          --------------

Net income (loss), before cumulative
    effect of FAS 133 ...................      10,433,630            (20,293,999)            (19,147,016)            (99,879,901)
Cumulative effect of FAS 133 ............              --                     --                      --                      --
                                            -------------         --------------          --------------          --------------

Net Income (Loss) .......................      10,433,630            (20,293,999)            (19,147,016)            (99,879,901)
                                            =============         ==============          ==============          ==============

Invested assets, including funds withheld   1,914,866,152          1,904,454,610           1,890,333,600           1,733,439,717
                                            -------------         --------------          --------------          --------------

Total Assets ............................   2,316,054,846          2,296,307,590           2,320,658,460           2,044,698,187
                                            =============         ==============          ==============          ==============

Policyholder benefit and interest
    sensitive contract liabilities ......   1,740,077,180          1,721,889,834           1,745,583,618           1,712,762,889
                                            -------------         --------------          --------------          --------------

Total Liabilities .......................   1,910,302,855          1,905,117,306           1,941,416,161           1,776,361,476
                                            =============         ==============          ==============          ==============

Shareholders equity .....................     405,751,991            391,190,284             379,242,299             268,336,711
                                            =============         ==============          ==============          ==============

Segment Return on Equity - Annualized ...            10.3%                 -20.4%                  -19.9%                 -123.4%
                                            =============         ==============          ==============          ==============






                                                                            DECEMBER 31, 2003
                                            --------------------------------------------------------------------------
                                            FIRST QUARTER           SECOND QUARTER     THIRD QUARTER    FOURTH QUARTER
                                            -------------           --------------     -------------    --------------
                                                                                            
CORPORATE

Net investment income, including realized
     capital gains and (losses) .........       2,060,459               5,205,648
Expenses ................................       1,518,631               1,519,821
                                            -------------          --------------     -------------    --------------

Net income ..............................         541,828               3,685,827
                                            =============          ==============     =============    ==============

Invested assets .........................      76,740,945              29,576,558
                                            -------------          --------------     -------------    --------------

Total Assets ............................      82,205,050              32,087,049
                                            =============          ==============     =============    ==============

Total Liabilities .......................      11,587,846               9,565,313
                                            =============          ==============     =============    ==============

Shareholders equity .....................      70,617,204              22,521,736
                                            =============          ==============     =============    ==============

Segment Return on Equity - Annualized ...             3.7%                   31.7%
                                            =============          ==============     =============    ==============

CONSOLIDATED

Net premiums and fees ...................      62,756,161              61,566,499
Net investment income, including realized
     capital gains and (losses) .........      23,577,416               8,913,377
                                            -------------          --------------     -------------    --------------
Total Revenues ..........................      86,333,577              70,479,876
                                            -------------          --------------     -------------    --------------

Policyholder Benefits ...................      79,961,199              88,642,748
Expenses ................................      58,847,194              50,553,568
Financing costs .........................              --                      --
                                            -------------          --------------     -------------    --------------
Total benefits and expenses .............     138,808,393             139,196,316
                                            -------------          --------------     -------------    --------------

Net income (loss), before cumulative
    effect of FAS 133 ...................     (52,474,816)            (68,716,440)
Cumulative effect of FAS 133 ............              --                      --
                                            -------------          --------------     -------------    --------------

Net Income (Loss) .......................     (52,474,816)            (68,716,440)
                                            =============          ==============     =============    ==============

Invested assets, including funds withheld   1,318,393,177           1,070,314,907
                                            -------------          --------------     -------------    --------------

Total Assets ............................   1,572,626,895           1,278,738,994
                                            =============          ==============     =============    ==============

Policyholder benefit and interest
    sensitive contract liabilities ......   1,255,517,408           1,051,405,554
                                            -------------          --------------     -------------    --------------

Total Liabilities .......................   1,356,409,691           1,132,017,258
                                            =============          ==============     =============    ==============

Shareholders equity .....................     216,217,204             146,721,736
                                            =============          ==============     =============    ==============

Segment Return on Equity - Annualized ...           -86.6%                 -151.5%
                                            =============          ==============     =============    ==============