8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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)     November 8, 2004

Annuity and Life Re (Holdings), Ltd.

(Exact Name of Registrant as Specified in its Charter)

Bermuda	1-16561	66-0619270
	(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

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

PRESS RELEASE DATED NOVEMBER 8, 2004

UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION

Item 2.02. Results of Operations and Financial Condition.

     The following information, furnished under “Item 2.02. 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 November 8, 2004, Annuity and Life Re (Holdings), Ltd. (the “Company”) issued a press release, which is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release disclosed the Company’s financial results for the three month period ended September 30, 2004. Also on November 8, 2004, the Company posted on its website unaudited supplemental financial information, which is attached hereto as Exhibit 99.2 and incorporated herein by reference.

SIGNATURES

     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: November 8, 2004		By:	/s/ John W. Lockwood
		John W. Lockwood Chief Financial Officer

EXHIBIT INDEX

99.1	Press Release dated November 8, 2004
99.2	Unaudited Supplemental Financial Information

EX-99.1

Exhibit 99.1

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:  John Lockwood
Annuity & Life Re (Holdings), Ltd.
441-296-7667

ANNUITY & LIFE RE SEPTEMBER 2004 EARNINGS REPORT

Hamilton, Bermuda, November 8, 2004, 6:00 p.m. ET – Annuity and Life Re (Holdings), Ltd. (ANNRF.OB) today reported financial results for the three month period ended September 30, 2004. The Company reported a net loss of $(3,095,705) or $(0.12) per fully diluted share for the three month period ended September 30, 2004, as compared to a net loss of $(3,786,905) or $(0.15) per fully diluted share for the three month period ended September 30, 2003. The third quarter 2004 loss includes a $2.4 million charge related to the recapture of the Company’s GMDB/GMIB agreement with GIGNA, a net loss of $2.1 million from the Company’s annuity reinsurance agreement with Transamerica, a loss of $0.7 million from the Company’s second largest life reinsurance agreement and a loss of $0.3 million from the Company’s second largest annuity reinsurance agreement. These losses were partially offset by income from some of the Company’s other remaining life reinsurance agreements, including income of approximately $2.1 million from the Company’s largest life reinsurance agreement.

Net realized investment losses for the three month period ended September 30, 2004 were $(84,868), as compared with net realized investment losses of $(52,025) for the three month period ended September 30, 2003.

Unrealized gains on the Company’s investments were $1,038,094 as of September 30, 2004, as compared to gains of $1,840,849 at December 31, 2003. The Company’s investment portfolio currently maintains an average credit quality of AA. Cash used by operations for the nine months ended September 30, 2004 was $57,327,851 as compared to cash used by operations of $97,859,548 for the nine month period ended September 30, 2003. The cash used by operations in the nine months ended September 30, 2004 includes payments made in connection with the settlement of the Met Life recapture, payments made to Transamerica under an annuity reinsurance agreement and payments made to CIGNA related to the recapture of the Company’s GMDB/GMIB reinsurance agreement with CIGNA.

Book value per share at September 30, 2004 was $4.78, as compared to $5.11 at December 31, 2003. The Company adopted SOP 03-1 effective as of January 1, 2004, which required it to increase its liabilities by approximately $36.6 million and its deferred acquisition costs by approximately $36.2 million. As a result, the Company’s tangible book value, which is GAAP book value less deferred acquisition costs, declined from $2.50 per share at December 31, 2003 to $1.12 as of January 1, 2004. Tangible book value per share has increased to $1.15 at September 30, 2004.

Jay Burke, the Company’s Chief Executive Officer, commented:

“We are very pleased that the Company and CIGNA were able to work together to resolve the long standing problems with the GMDB/GMIB agreement. We still have the Transamerica annuity reinsurance agreement, which continues to negatively impact the

Company’s operating results and cash position, but we are seeking to work with Transamerica to find a mutually acceptable resolution to the problems created by that agreement.”

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; the Company’s ability to pursue strategic alternatives on favorable terms; the outcome of pending legal proceedings involving the Company; the Company’s ability to obtain adequate financial ratings; the ability of the Company’s cedents to manage successfully assets they hold on the Company’s behalf; the Company’s success in managing its investments; the Company’s ability to list its common shares on a national exchange or automated quotation system; changes in mortality, morbidity and claims experience; the Company’s ability to make accurate estimates and assumptions regarding future mortality, persistency, lapses, expenses and investment performance based upon historical results and information provided to it by its cedents; the Company’s ability to underwrite business; unanticipated withdrawal or surrender activity; changes in market conditions, including changes in interest rate levels; the competitive environment; the impact of recent and possible future terrorist attacks and the U.S. government’s response thereto; the Company’s ability to attract and retain clients; 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, 2003, 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_2004.html. Certain financial information that has been made available to financial analysts is available in the “Financial Reports” section of the Company’s website at www.alre.bm/reports.html.

-2-

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

	September 30, 2004			December 31, 2003
Assets	(unaudited)
Cash and cash equivalents	$	56,933,773		$	80,068,310
Fixed maturity investments at fair value (amortized cost of $81,880,490 and $115,594,199 at September 30, 2004 and December 31, 2003)		83,287,548			117,812,445
Funds withheld at interest		596,544,390			667,824,819
Accrued investment income		1,033,470			1,491,170
Receivable for reinsurance ceded		82,627,663			88,480,172
Other reinsurance receivables		3,656,664			4,580,745
Deferred policy acquisition costs		95,787,457			68,942,628
Other assets		752,990			682,050
Total Assets	$	920,623,955		$	1,029,882,339
Liabilities
Reserves for future policy benefits	$	151,673,217		$	161,105,541
Interest sensitive contracts liability		621,979,101			670,717,546
Other reinsurance liabilities		15,381,098			55,826,940
Accounts payable and accrued expenses		5,519,109			7,059,733
Total Liabilities		794,552,525			894,709,760
Stockholders’ Equity
Preferred shares (par value $1.00; 50,000,000 shares authorized; no shares outstanding)		—			—
Common shares (par value $1.00; 100,000,000 shares authorized; 26,395,928 and 26,454,195 shares outstanding at September 30, 2004 and December 31, 2003)		26,395,928			26,454,195
Additional paid-in capital		334,041,944			334,418,029
Stock warrants		1,350,000			1,250,000.00
Unamortized stock-based compensation		(781,376	)		(1,509,022	)
Accumulated other comprehensive income		1,038,094			1,840,849
Accumulated deficit		(235,973,160	)		(227,281,472	)
Total Stockholders’ Equity	$	126,071,430		$	135,172,579
Total Liabilities and Stockholders’ Equity	$	920,623,955		$	1,029,882,339

-3-

ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in U.S. dollars)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2004			2003			2004			2003
Revenues
Net premiums	$	9,906,337		$	28,657,263		$	34,565,859		$	148,586,899
Investment income, net of related expenses		4,780,211			16,250,225			17,875,012			30,143,651
Net realized investment (losses) gains		(84,868	)		(52,025	)		456,172			6,508,019
Net change in fair value of embedded derivatives		565,939			2,808,427			1,692,113			14,845,749
Surrender fees and other revenues		1,024,405			1,667,997			3,609,905			6,061,022
Total Revenues		16,192,024			49,331,887			58,199,061			206,145,340
Benefits and Expenses
Claims and policy benefits		5,669,394			19,075,004			24,683,101			178,589,650
Interest credited to interest sensitive products		5,513,653			7,642,151			10,865,545			16,731,452
Policy acquisition costs and other insurance expenses		5,693,745			22,796,448			18,529,269			119,928,722
Operating expenses		2,410,937			3,605,189			12,446,874			15,873,678
Total Benefits and Expenses		19,287,729			53,118,792			66,524,789			331,123,502
Loss before cumulative effect of a change in accounting principle		(3,095,705	)		(3,786,905	)		(8,325,728	)		(124,978,162	)
Cumulative effect of a change in accounting principle		—			—			(365,960	)		—
Net Loss	$	(3,095,705	)	$	(3,786,905	)	$	(8,691,688	)	$	(124,978,162	)
Loss per common share before cumulative effect of a change in accounting principle per common share
Basic	$	(0.12	)	$	(0.15	)	$	(0.32	)	$	(4.83	)
Diluted	$	(0.12	)	$	(0.15	)	$	(0.32	)	$	(4.83	)
Cumulative effect of a change in accounting principle per common share
Basic	$	—		$	—		$	(0.01	)	$	—
Diluted	$	—		$	—		$	(0.01	)	$	—
Net Loss per common share
Basic	$	(0.12	)	$	(0.15	)	$	(0.33	)	$	(4.83	)
Diluted	$	(0.12	)	$	(0.15	)	$	(0.33	)	$	(4.83	)

-4-

ANNUITY AND LIFE RE (HOLDINGS), LTD.
CONSOLIDATED STATEMENTS OF SEGMENT INCOME (LOSS)
(Unaudited and in U.S. dollars)

	Life			Annuity
	Reinsurance			Reinsurance			Corporate			Consolidated
Three Months Ended September 30, 2003
Revenues	$	30,013,563		$	19,107,200		$	211,124		$	49,331,887
Benefits and Expenses		29,434,795			22,548,719			1,135,278			53,118,792
Segment Income (Loss)	$	578,768		$	(3,441,519	)	$	(924,154	)	$	(3,786,905	)
Total Assets	$	273,604,371		$	730,598,264		$	77,216,650		$	1,081,419,285
Fully Diluted Earnings per Share	$	0.02		$	(0.13	)	$	(0.04	)	$	(0.15	)
Three Months Ended September 30, 2004
Revenues	$	10,620,367		$	5,026,576		$	545,081		$	16,192,024
Benefits and Expenses		8,016,909			9,781,795			1,489,025			19,287,729
Segment Income (Loss)	$	2,603,458		$	(4,755,219	)	$	(943,944	)	$	(3,095,705	)
Total Assets	$	197,754,315		$	642,979,101		$	79,890,539		$	920,623,955
Fully Diluted Earnings per Share	$	0.10		$	(0.18	)	$	(0.04	)	$	(0.12	)
Nine Months Ended September 30, 2003
Revenues	$	147,690,979		$	50,977,130		$	7,477,231		$	206,145,340
Benefits and Expenses		231,596,707			95,353,065			4,173,730			331,123,502
Segment (Loss) Income	$	(83,905,728	)	$	(44,375,935	)	$	3,303,501		$	(124,978,162	)
Total Assets	$	273,604,371		$	730,598,264		$	77,216,650		$	1,081,419,285
Fully Diluted Earnings per Share	$	(3.25	)	$	(1.71	)	$	0.13		$	(4.83	)
Book Value per share										$	5.39
Nine Months Ended September 30, 2004
Revenues	$	35,750,909		$	19,948,919		$	2,499,233		$	58,199,061
Benefits and Expenses		32,238,504			24,584,137			9,702,148			66,524,789
Segment Income (Loss) before cumulative effect of a change in accounting principle	$	3,512,405		$	(4,635,218	)	$	(7,202,915	)	$	(8,325,728	)
Cumulative effect of a change in accounting principle		—			(365,960	)		—		$	(365,960	)
Segment Income (Loss)	$	3,512,405		$	(5,001,178	)	$	(7,202,915	)	$	(8,691,688	)
Total Assets	$	197,754,315		$	642,979,101		$	79,890,539		$	920,623,955
Fully Diluted Earnings per Share	$	0.13		$	(0.19	)	$	(0.27	)	$	(0.33	)
Book Value per share										$	4.78

-5-

EX-99.2

Exhibit 99.2

Annuity & Life Re (Holdings), Ltd.
Quarterly Statement of Net Income and Other Financial Data

	9/30/2004			6/30/2004			3/31/2004			12/31/2003			9/30/2003			6/30/2003			3/31/2003			12/31/2002			9/30/2002
Revenues
Net Premiums	$	9,906,337		$	10,348,881		$	14,310,641		$	18,385,942		$	28,657,263		$	58,563,721		$	61,365,914		$	89,090,406		$	84,934,401
Investment Income		4,780,211			3,844,066			9,250,735			(1,101,429	)		16,250,225			5,734,738			8,158,689			20,055,130			31,127,396
Realized gains (losses)		(84,868	)		(137,885	)		678,925			(101,432	)		(52,025	)		4,896,176			1,663,868			8,935,951			9,297,351
Net Change in FV of ED’s		565,939			518,786			607,388			1,846,939			2,808,427			(1,717,537	)		13,754,859			(7,591,580	)		(13,277,823	)
Other Revenue		1,024,405			1,510,568			1,074,932			1,235,993			1,667,997			3,002,778			1,390,247			2,549,743			3,549,362
Total Revenues	$	16,192,024		$	16,084,416			25,922,621			20,266,013			49,331,887			70,479,876			86,333,577			113,039,650			115,630,687
Benefits and Expenses
Claims and Benefits	$	5,669,394		$	8,769,049		$	10,244,658		$	19,413,255			19,075,004			84,425,206			75,089,440			127,768,226			91,381,831
Annuity Interest		5,513,653			1,822,643			3,529,250			(2,750,729	)		7,642,151			4,217,542			4,871,759			14,154,754			18,345,349
Policy Acquisition & Insurance costs		5,693,745			4,654,527			8,180,997			8,620,567			22,796,448			44,631,210			52,501,064			52,177,650			17,492,342
Financing Costs		—			—			—			—			—			—			—			6,867,795			3,731,580
Operating Expenses		2,410,937			7,268,575			2,767,362			2,160,343			3,605,189			5,922,358			6,346,130			11,951,126			3,826,602
Total Benefits and Expenses	$	19,287,729		$	22,514,794			24,722,267			27,443,436			53,118,792			139,196,316			138,808,393			212,919,551			134,777,704
Cumulative Effect		—			—			(365,960	)		—			—			—			—			—			—
Net Income (Loss)	$	(3,095,705	)	$	(6,430,378	)	$	834,394		$	(7,177,423	)	$	(3,786,905	)	$	(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		(84,868	)		(137,885	)		678,925			(101,432	)		(52,025	)		4,896,176			1,663,868			8,935,951			9,297,351
Net Change in FV of ED’s (3)		565,939			518,786			607,388			1,846,939			2,808,427			(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
Shareholder lawsuit settlement		—			(5,000,000	)		—			—			—			—			—			—			—
Transamerica		(2,058,655	)		(1,779,533	)		930,342			602,126			(4,449,469	)		(102,918	)		883,041			(2,799,031	)		2,000
Operating (Loss) Income, X-TA	$	(1,518,121	)	$	(31,746	)	$	(1,382,261	)	$	(9,525,056	)	$	(2,093,838	)	$	(71,792,162	)	$	(61,822,680	)	$	(99,406,365	)	$	(20,958,789	)
Net Income (Loss) per Share
Basic
Shares		25,945,328			25,874,495			25,786,161			25,957,081			25,893,861			25,841,057			25,796,195			25,755,411			25,733,141
Earnings	$	(0.12	)	$	(0.25	)	$	0.03		$	(0.28	)	$	(0.15	)	$	(2.66	)	$	(2.03	)	$	(3.88	)	$	(0.74	)
Diluted
Shares		25,945,328			25,874,495			26,126,451			25,957,081			25,893,861			26,324,716			26,325,845			26,089,620			26,100,766
Earnings	$	(0.12	)	$	(0.25	)	$	0.03		$	(0.28	)	$	(0.15	)	$	(2.66	)	$	(2.03	)	$	(3.88	)	$	(0.74	)
Operating (Loss) Income, per fully diluted share X-TA (2)	$	(0.06	)	$	(0.00	)	$	(0.05	)	$	(0.37	)	$	(0.08	)	$	(2.73	)	$	(2.35	)	$	(3.81	)	$	(0.80	)
Life Insurance In force
Face Amount (000’s)	$	15,340,800		$	16,446,500		$	16,695,700		$	17,510,100		$	30,488,600		$	60,397,300		$	68,989,300		$	117,511,100		$	150,948,700
Premium	$	44,000,000		$	51,200,000		$	56,000,000		$	54,580,000		$	96,281,000		$	156,300,000		$	261,541,595		$	261,541,595		$	325,350,000
Annuity Deposits (000s)	$	621,979		$	643,402		$	677,459		$	670,718		$	704,798		$	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		15.43	%		46.70	%		10.93	%		11.73	%		7.75	%		8.20	%		8.74	%		9.91	%		2.97	%
YTD		22.03	%		24.55	%		10.93	%		8.60	%		8.30	%		8.47	%		8.74	%		4.68	%		2.94	%
Book Value per Share (1)	$	4.78		$	4.81		$	5.18		$	5.11		$	5.39		$	5.52		$	8.23		$	10.28		$	14.73

[Additional columns below]

(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.

[Continued from above table, first column(s) repeated]

	6/30/2002			3/31/2002			12/31/01			9/30/01			6/30/01			3/31/01			12/31/00			9/30/00			6/30/00
Revenues
Net Premiums	$	92,065,743		$	78,006,891		$	69,837,478		$	66,813,664		$	61,628,943		$	53,513,153		$	49,901,622		$	44,588,022		$	37,684,372
Investment Income		26,366,669			24,589,790			24,194,090			24,239,602			19,605,194			23,089,810			60,286,132			23,745,266			25,819,232
Realized gains (losses)		1,837,672			(321,708	)		(195,145	)		1,078,933			320,629			25,621			(1,133,867	)		(702,549	)		(2,417,880	)
Net Change in FV of ED’s		(6,566,805	)		1,590,098			8,596,369			(5,265,396	)		1,846,981			(148,927	)
Other Revenue		6,161,207			3,896,125			5,228,601			5,512,939			4,644,690			3,133,471			1,829,461			1,689,451			1,589,357
Total Revenues		119,864,486			107,761,196			107,661,393			92,379,742			88,046,437			79,613,128			110,883,348			69,320,190			62,675,081
Benefits and Expenses
Claims and Benefits		74,443,139			58,815,606			54,325,087			74,873,807			45,201,447			41,624,668			33,913,597			36,040,180			29,898,304
Annuity Interest		20,948,167			17,922,346			18,768,251			14,401,290			7,797,407			8,291,470			43,692,693			5,322,440			8,063,576
Policy Acquisition & Insurance costs		40,571,869			15,636,118			31,359,643			43,306,421			26,889,334			25,025,150			16,286,966			14,922,217			14,919,657
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			2,689,045			2,665,070			3,926,303			2,328,514			2,165,313
Total Benefits and Expenses		140,158,484			97,327,566			109,372,589			135,060,216			82,577,233			77,606,358			97,819,559			58,613,351			55,046,850
Cumulative Effect		—			—			—			—			—			(3,665,735	)		—			—			—
Net Income (Loss)	$	(20,293,998	)	$	10,433,630		$	(1,711,196	)	$	(42,680,474	)	$	5,469,204		$	(1,658,965	)	$	13,063,789		$	10,706,839		$	7,628,231
Adjustments to Net Income to Get to Operating Income, Excluding Transamerica
Realized Gains & Losses		1,837,672			(321,708	)		(195,145	)		1,078,933			320,629			25,621			(1,133,867	)		(702,549	)		(2,417,880	)
Net Change in FV of ED’s (3)		(6,566,805	)		1,590,098			8,596,369			(5,265,396	)		1,846,981			(3,814,662	)		—			—			—
Change in DAC Amort from ED’s		903,739			598,981			(2,730,908	)		269,009			257,264			884,451			—			—			—
Shareholder lawsuit settlement		—			—			—			—			—			—			—			—			—
Transamerica		(24,123,300	)		(2,300	)		(15,778,360	)		(22,024,398	)		(7,222,726	)		(7,020,468	)		2,842,156			4,120,238			4,011,938
Operating (Loss) Income, X-TA	$	7,654,696		$	8,568,559		$	8,396,848		$	(16,738,622	)	$	10,267,056		$	8,266,093		$	11,355,500		$	7,289,150		$	6,034,173
Net Income (Loss) per Share
Basic
Shares		25,722,016			25,705,328			25,695,578			25,683,328			25,591,746			25,501,331			25,499,999			25,499,999			25,499,999
Earnings	$	(0.79	)	$	0.41		$	(0.07	)	$	(1.66	)	$	0.21		$	(0.07	)	$	0.51		$	0.42		$	0.30
Diluted
Shares		26,755,190			26,968,835			27,813,418			28,534,245			28,211,313			27,960,971			27,676,641			27,419,525			27,311,063
Earnings	$	(0.79	)	$	0.39		$	(0.07	)	$	(1.66	)	$	0.19		$	(0.07	)	$	0.47		$	0.39		$	0.28
Operating (Loss) Income, per fully diluted share X-TA (2)	$	0.29		$	0.32		$	0.30		$	(0.59	)	$	0.36		$	0.30		$	0.41		$	0.27		$	0.22
Life Insurance In force
Face Amount (000’s)	$	137,182,089		$	129,238,000		$	117,400,000		$	104,000,000		$	91,105,000		$	83,205,000		$	77,016,000		$	61,419,000		$	55,467,000
Premium	$	333,800,000		$	310,400,000		$	240,100,000		$	227,000,000		$	203,600,000		$	184,900,000		$	159,000,000		$	140,600,000		$	136,700,000
Annuity Deposits (000s)	$	1,464,394		$	1,503,144		$	1,516,796		$	1,629,042		$	1,550,816		$	1,553,352		$	1,595,129		$	1,480,004		$	1,569,619
Expense Ratio as a % of Revenue, x-Change in FV of Embedded Derivatives
Current Quarter		2.49	%		3.45	%		3.75	%		2.54	%		3.12	%		3.34	%		3.54	%		3.36	%		3.45	%
YTD		2.92	%		3.45	%		3.19	%		2.97	%		3.23	%		3.34	%		3.39	%		3.30	%		3.27	%
Book Value per Share (1)	$	15.21		$	15.78		$	15.65		$	15.91		$	17.36		$	17.33		$	17.13		$	16.43		$	16.02

[Additional columns below]

(1)	Computed as reported BV divided by outstanding shares.
(2)	Utilizies fully diluted shares even if they are anti-dilutive.
(3)	Includes cumulative effect of a change in accounting principle.

[Continued from above table, first column(s) repeated]

	3/31/00			12/31/99			9/30/99			6/30/99			3/31/99			12/31/98			9/30/98			6/30/98
Revenues
Net Premiums	$	36,230,006		$	43,114,344		$	21,101,366		$	18,372,285		$	18,247,102		$	17,878,140		$	10,065,750
Investment Income		26,797,697			26,724,547			19,528,879			20,677,325			18,159,060			14,464,369			5,366,566			4,299,615
Realized gains (losses)		(562,825	)		(597,464	)		(793,008	)		(157,755	)		263,458			1,505,617			1,018,990			148,674
Net Change in FV of ED’s Other Revenue		1,807,601			1,575,505			1,250,961			149,262			239,701			311,243
Total Revenues		64,272,479			70,816,932			41,088,198			39,041,117			36,909,321			34,159,369			16,451,306			4,448,289
Benefits and Expenses
Claims and Benefits		32,958,111			31,447,754			17,232,038			15,507,499			15,765,869			14,897,615			8,399,500
Annuity Interest		8,763,595			9,724,666			4,762,521			3,948,668			3,876,829			1,989,000
Policy Acquisition & Insurance costs		12,856,683			16,751,414			9,052,163			8,991,772			7,405,339			6,341,697			200,175
Financing Costs		—			—			—			—			—			—			—			—
Operating Expenses		1,991,214			3,133,536			1,326,416			1,846,935			1,378,915			1,705,631			1,191,465			873,278
Total Benefits and Expenses		56,569,603			61,057,370			32,373,138			30,294,874			28,426,952			24,933,943			9,791,140			873,278
Cumulative Effect		—			—			—			—			—			—			—			—
Net Income (Loss)	$	7,702,876		$	9,759,562		$	8,715,060		$	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		(562,825	)		(597,464	)		(793,008	)		(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		—			—			—			—			—			—			—			—
Shareholder lawsuit settlement		—			—			—			—			—			—			—			—
Transamerica		4,008,208			3,446,911			3,429,323			4,062,300			2,653,060			2,242,565			—			—
Operating (Loss) Income, X-TA	$	4,257,493		$	6,910,115		$	6,078,745		$	4,841,698		$	5,565,851		$	5,477,244		$	5,641,176		$	3,426,337
Net Income (Loss) per Share
Basic
Shares		25,499,999			25,499,999			25,499,999			25,499,999			25,499,999			25,499,999			25,499,999			21,016,483
Earnings	$	0.30		$	0.38		$	0.34		$	0.34		$	0.33		$	0.36		$	0.26		$	0.17
Diluted
Shares		27,443,307			27,369,033			27,218,541			27,114,771			27,181,315			27,373,430			26,629,834			22,405,132
Earnings	$	0.28		$	0.36		$	0.32		$	0.32		$	0.31		$	0.34		$	0.25		$	0.16
Operating (Loss) Income, per fully diluted share X-TA (2)	$	0.16		$	0.25		$	0.22		$	0.18		$	0.20		$	0.20		$	0.21		$	0.15
Life Insurance In force
Face Amount (000’s)	$	52,654,000		$	45,407,000		$	36,558,000		$	31,229,000		$	29,960,000		$	22,538,000		$	15,000,000
Premium	$	131,200,000		$	110,000,000		$	79,200,000		$	73,700,000		$	73,000,000		$	54,900,000		$	40,000,000
Annuity Deposits (000s)	$	1,651,256		$	1,603,383		$	1,625,983		$	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		3.10	%		4.42	%		3.23	%		4.73	%		3.74	%		4.99	%		7.24	%		19.63	%
YTD		3.10	%		4.09	%		3.89	%		4.25	%		3.74	%		6.85	%		9.88	%		19.63	%
Book Value per Share (1)	$	15.64		$	15.37		$	15.18		$	14.95		$	14.88		$	14.72		$	14.55		$	14.03

(1)	Computed as reported BV divided by outstanding shares.
(2)	Utilizies fully diluted shares even if they are anti-dilutive.
(3)	Includes cumulative effect of a change in accounting principle.