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) August 4, 2005

Annuity and Life Re (Holdings), Ltd.

(Exact Name of Registrant as Specified in its Charter)

Bermuda	1-16561	66-0619270
(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

(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))

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 August 4, 2005, 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 June 30, 2005. On August 5, 2005, the Company posted on its website unaudited supplemental financial information, which is attached hereto as Exhibit 99.2 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(a) Financial statements of businesses acquired.

Not applicable.

(b) Pro forma financial information.

Not applicable.

(c) Exhibits.

99.1 Press Release dated August 4, 2005

99.2 Unaudited Supplemental Financial Information

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: August 5, 2005		By:	/s/ John W. Lockwood
			John W. Lockwood
			Chief Financial Officer

EXHIBIT INDEX

99.1 Press Release dated August 4, 2005

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 SECOND QUARTER 2005 EARNINGS REPORT

Hamilton, Bermuda, August 4, 2005 6:00 p.m. EST – Annuity and Life Re (Holdings), Ltd. (ANNRF.OB) today reported financial results for the three months ended June 30, 2005. The Company reported a net loss of $(539,968) or $(0.02) per fully diluted share for the three months ended June 30, 2005, as compared to a net loss of $(6,430,378) or $(0.25) per fully diluted share for the three months ended June 30, 2004. The second quarter 2004 loss included a $5 million charge for the cost of settling the shareholder class action lawsuit against the Company and certain of its present and former officers and directors. Net realized investment losses for the three months ended June 30, 2005 and June 30, 2004 were $(6) and $(137,885), respectively.

Gross unrealized gains on the Company’s investments were $673,675 as of June 30, 2005, as compared to gross unrealized gains of $1,266,517 at December 31, 2004. The Company’s investment portfolio currently maintains an average credit quality of AA. Cash used by operations for the six months ended June 30, 2005 was $41,566,790 as compared to cash used by operations of $28,450,290 for the six months ended June 30, 2004. The cash used by operations during the six months ended June 30, 2005 included payments made in connection with the recapture and settlement of the Transamerica annuity reinsurance agreement and the novation of the Scottish and F&G life reinsurance agreements to Transamerica. Approximately $39,600,000 was paid to Transamerica in connection with these novation and recapture transactions in the six months ended June 30, 2005.

*************************************************************************************************************

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 pursue strategic alternatives on favorable terms; the loss of a key executive; the outcome of pending legal

proceedings involving the Company; 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; 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; 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; 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, 2004. 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_2005.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.

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ANNUITY AND LIFE RE (HOLDINGS), LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars)

	June 30, 2005			December 31, 2004
	(unaudited)
Assets
Cash and cash equivalents	$	33,637,082		$	56,394,484
Fixed maturity investments at fair value (amortized cost of $62,085,120 and $80,767,893 at June 30, 2005 and December 31, 2004)		62,750,761			82,034,410
Funds withheld at interest		53,305,982			56,415,386
Accrued investment income		870,796			1,155,762
Receivable for investments sold		309,525			—
Receivable for reinsurance ceded		77,982,650			82,433,270
Other reinsurance receivables		2,711,210			4,306,931
Deferred policy acquisition costs		5,683,172			6,084,488
Other assets		585,984			580,625
Total Assets	$	237,837,162		$	289,405,356
Liabilities
Reserves for future policy benefits	$	106,589,798		$	109,860,843
Interest sensitive contracts liability		53,810,806			57,754,009
Other reinsurance liabilities		10,471,084			49,186,297
Accounts payable and accrued expenses		1,949,337			6,186,995
Total Liabilities		172,821,025			222,988,144
Stockholders’ Equity
Preferred shares (par value $1.00; 50,000,000 shares authorized; no shares outstanding)		—			—
Common shares (par value $1.00; 100,000,000 shares authorized; 26,316,861 and 26,338,528 shares issued and outstanding at June 30, 2005 and December 31, 2004)		26,316,861			26,338,528
Additional paid-in capital		333,797,708			333,810,766
Stock warrants		1,350,000			1,350,000
Unamortized stock-based compensation		(205,550	)		(490,415	)
Accumulated other comprehensive income		673,675			1,016,260
Accumulated deficit		(296,916,557	)		(295,607,927	)
Total Stockholders’ Equity		65,016,137			66,417,212
Total Liabilities and Stockholders’ Equity	$	237,837,162		$	289,405,356

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ANNUITY AND LIFE RE (HOLDINGS), LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in U.S. dollars)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2005			2004			2005			2004
Revenues
Net premiums	$	2,927,917		$	10,348,881		$	8,416,183		$	24,659,522
Investment income, net of related expenses		1,609,615			3,844,066			3,275,624			13,094,801
Net realized investment (losses) gains		(6	)		(137,885	)		401,144			541,040
Net change in fair value of embedded derivatives		(35,736	)		518,786			451,409			1,126,174
Surrender fees and other revenues		30,677			1,510,568			61,313			2,585,500
Total Revenues		4,532,467			16,084,416			12,605,673			42,007,037
Benefits and Expenses
Claims and policy benefits		1,587,086			8,769,049			6,189,529			19,013,707
Interest credited to interest sensitive products		257,075			1,822,643			626,253			5,351,892
Policy acquisition costs and other insurance expenses		1,008,209			4,654,527			2,364,446			12,835,524
Operating expenses		2,220,065			7,268,575			4,734,076			10,035,937
Total Benefits and Expenses		5,072,435			22,514,794			13,914,304			47,237,060
Loss before cumulative effect of a change in accounting principle	$	(539,968	)	$	(6,430,378	)		(1,308,631	)		(5,230,023	)
Cumulative effect of a change in accounting principle		—			—			—			(365,960	)
Net Loss	$	(539,968	)	$	(6,430,378	)	$	(1,308,631	)	$	(5,595,983	)
Loss before cumulative effect of a change in accounting principle per common share
Basic	$	(0.02	)	$	(0.25	)	$	(0.05	)	$	(0.21	)
Diluted	$	(0.02	)	$	(0.25	)	$	(0.05	)	$	(0.21	)
Cumulative effect of a change in accounting principle per common share
Basic	$	—		$	—		$	—		$	(0.01	)
Diluted	$	—		$	—		$	—		$	(0.01	)
Net loss per common share
Basic	$	(0.02	)	$	(0.25	)	$	(0.05	)	$	(0.22	)
Diluted	$	(0.02	)	$	(0.25	)	$	(0.05	)	$	(0.22	)

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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 Ending June 30, 2005
Revenues	$	3,314,514	$	644,128		$	573,825		$	4,532,467
Benefits and expenses		2,363,635		686,340			2,022,460			5,072,435
Segment Income (Loss)	$	950,879	$	(42,212	)	$	(1,448,635	)	$	(539,968	)
Total Assets	$	121,460,882	$	55,510,806		$	60,865,474		$	237,837,162
Fully Diluted Earnings per Share	$	0.04	$	(0.00	)	$	(0.06	)	$	(0.02	)
Three Months Ending June 30, 2004
Revenues	$	10,515,041	$	5,002,269		$	567,106		$	16,084,416
Benefits and expenses		9,780,675		6,215,881			6,518,238			22,514,794
Segment Income (Loss)	$	734,366	$	(1,213,612	)	$	(5,951,132	)	$	(6,430,378	)
Total Assets	$	220,280,815	$	666,102,422		$	86,128,401		$	972,511,638
Fully Diluted Earnings per Share	$	0.03	$	(0.05	)	$	(0.23	)	$	(0.25	)
Six Months Ending June 30, 2005
Revenues	$	9,282,433	$	1,837,937		$	1,485,303		$	12,605,673
Benefits and expenses		8,151,872		1,442,989			4,319,443			13,914,304
Segment Income (Loss)	$	1,130,561	$	394,948		$	(2,834,140	)	$	(1,308,631	)
Total Assets	$	121,460,882	$	55,510,806		$	60,865,474		$	237,837,162
Fully Diluted Earnings per Share	$	0.04	$	0.02		$	(0.11	)	$	(0.05	)
Book Value per share									$	2.47
Six Months Ending June 30, 2004
Revenues	$	25,130,541	$	14,922,344		$	1,954,152		$	42,007,037
Benefits and expenses		24,221,596		14,802,342			8,213,123			47,237,060
Segment Income (Loss)	$	908,946	$	120,002		$	(6,258,971	)	$	(5,230,023	)
Cumulative Change due to SOP 03-1 Adoption		—		(365,960	)		—		$	(365,960	)
Segment Income (Loss)	$	908,946	$	(245,958	)	$	(6,258,971	)	$	(5,595,983	)
Total Assets	$	220,280,815	$	666,102,422		$	86,128,401		$	972,511,638
Fully Diluted Earnings per Share	$	0.04	$	(0.02	)	$	(0.24	)	$	(0.22	)
Book Value per share									$	4.81

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EX-99.2

Exhibit 99.2

Annuity & Life Re (Holdings), Ltd.

Quarterly Statement of Net Income and Other Financial Data

	6/30/2005			3/31/2005			12/31/2004			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			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			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	$	2,927,917		$	5,488,266		$	13,731,847		$	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		$	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		$	36,230,006		$	43,114,344		$	21,101,366		$	18,372,285		$	18,247,102		$	17,878,140		$	10,065,750
Investment Income		1,609,615			1,666,008			3,822,551			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			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			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)		(6	)		401,150			(16,636	)		(84,868	)		(137,885	)		678,925			(101,432	)		(52,025	)		4,896,176			1,663,868			8,935,951			9,297,351			1,837,672			(321,708	)		(195,145	)		1,078,933			320,629			25,621			(1,133,867	)		(702,549	)		(2,417,880	)		(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		(35,736	)		487,145			488,957			565,939			518,786			607,388			1,846,939			2,808,427			(1,717,537	)		13,754,859			(7,591,580	)		(13,277,823	)		(6,566,805	)		1,590,098			8,596,369			(5,265,396	)		1,846,981			(148,927	)
Other Revenue		30,677			30,636			865,786			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			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			1,807,601			1,575,505			1,250,961			149,262			239,701			311,243
Total Revenues	$	4,532,467		$	8,073,205		$	18,892,505		$	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			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			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	$	1,587,086		$	4,602,443		$	(10,581,972	)	$	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			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			32,958,111			31,447,754			17,232,038			15,507,499			15,765,869			14,897,615			8,399,500
Annuity Interest		257,075			369,178			(5,466,086	)		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			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			8,763,595			9,724,666			4,762,521			3,948,668			3,876,829			1,989,000
Policy Acquisition & Insurance costs		1,008,209			1,356,238			92,393,679			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			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			12,856,683			16,751,414			9,052,163			8,991,772			7,405,339			6,341,697			200,175
Financing Costs		—			—			—			—			—			—			—			—			—			—			6,867,795			3,731,580			1,053,037			1,295,704			1,200,000			—			—			—			—			—			—			—			—			—			—			—			—			—
Operating Expenses		2,220,065			2,514,011			2,181,650			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			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			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	$	5,072,435		$	8,841,870		$	78,527,271		$	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			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			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		—			—			—			—			—			(365,960	)		—			—			—			—			—			—			—			—			—			—			—			(3,665,735	)		—			—			—			—			—			—			—			—			—			—
Net (Loss) Income	$	(539,968	)	$	(768,665	)	$	(59,634,766	)	$	(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	)	$	(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		$	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		(6	)		401,150			(16,636	)		(84,868	)		(137,885	)		678,925			(101,432	)		(52,025	)		4,896,176			1,663,868			8,935,951			9,297,351			1,837,672			(321,708	)		(195,145	)		1,078,933			320,629			25,621			(1,133,867	)		(702,549	)		(2,417,880	)		(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)		(35,736	)		487,145			488,957			565,939			518,786			607,388			1,846,939			2,808,427			(1,717,537	)		13,754,859			(7,591,580	)		(13,277,823	)		(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		—			—			—			—			—			—			—			—			—			(6,953,904	)		981,124			5,790,244			903,739			598,981			(2,730,908	)		269,009			257,264			884,451			—			—			—			—			—			—			—			—			—			—			—
Shareholder lawsuit settlement		—			—			—			—			(5,000,000	)		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Transamerica annuity contract		—			—			(54,760,434	)		(2,058,655	)		(1,779,533	)		930,342			602,126			(4,449,469	)		(102,918	)		883,041			(2,799,031	)		2,000			(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			4,008,208			3,446,911			3,429,323			4,062,300			2,653,060			2,242,565			—			—
Transamerica SOP adjustment		—			—			—			—			—			(2,244,720	)
Operating (Loss) Income, X-TA	$	(504,226	)	$	(1,656,960	)	$	(5,346,653	)	$	(1,518,121	)	$	(31,746	)	$	862,459		$	(9,525,056	)	$	(2,093,838	)	$	(71,792,162	)	$	(61,822,680	)	$	(99,406,365	)	$	(20,958,789	)	$	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		$	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		26,107,695			26,014,845			25,961,161			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			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			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	$	(0.02	)	$	(0.03	)	$	(2.30	)	$	(0.12	)	$	(0.25	)	$	0.03		$	(0.28	)	$	(0.15	)	$	(2.66	)	$	(2.03	)	$	(3.88	)	$	(0.74	)	$	(0.79	)	$	0.41		$	(0.07	)	$	(1.66	)	$	0.21		$	(0.07	)	$	0.51		$	0.42		$	0.30		$	0.30		$	0.38		$	0.34		$	0.34		$	0.33		$	0.36		$	0.26		$	0.17
Diluted
Shares		26,107,695			26,014,845			25,961,161			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			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			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	$	(0.02	)	$	(0.03	)	$	(2.30	)	$	(0.12	)	$	(0.25	)	$	0.03		$	(0.28	)	$	(0.15	)	$	(2.66	)	$	(2.03	)	$	(3.88	)	$	(0.74	)	$	(0.79	)	$	0.39		$	(0.07	)	$	(1.66	)	$	0.19		$	(0.07	)	$	0.47		$	0.39		$	0.28		$	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)	$	(0.02	)	$	(0.06	)	$	(0.21	)	$	(0.06	)	$	(0.00	)	$	0.03		$	(0.37	)	$	(0.08	)	$	(2.73	)	$	(2.35	)	$	(3.81	)	$	(0.80	)	$	0.29		$	0.32		$	0.30		$	(0.59	)	$	0.36		$	0.30		$	0.41		$	0.27		$	0.22		$	0.16		$	0.25		$	0.22		$	0.18		$	0.20		$	0.20		$	0.21		$	0.15
Life Insurance In force
Face Amount (000’s)	$	2,187,700		$	2,276,700		$	2,344,200		$	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		$	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		$	52,654,000		$	45,407,000		$	36,558,000		$	31,229,000		$	29,960,000		$	22,538,000		$	15,000,000
Premium	$	13,900,000		$	16,100,000		$	17,200,000		$	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		$	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		$	131,200,000		$	110,000,000		$	79,200,000		$	73,700,000		$	73,000,000		$	54,900,000		$	40,000,000
Annuity Deposits (000s)	$	53,811		$	56,574		$	57,754		$	621,979		$	643,402		$	677,459		$	670,718		$	704,798		$	815,685		$	998,609		$	1,443,143		$	1,464,668		$	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		$	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		48.60	%		33.14	%		11.85	%		15.43	%		46.70	%		10.93	%		11.73	%		7.75	%		8.20	%		8.74	%		9.91	%		2.97	%		2.49	%		3.45	%		3.75	%		2.54	%		3.12	%		3.34	%		3.54	%		3.36	%		3.45	%		3.10	%		4.42	%		3.23	%		4.73	%		3.74	%		4.99	%		7.24	%		19.63	%
YTD		38.95	%		33.14	%		19.53	%		22.03	%		24.55	%		10.93	%		8.60	%		8.30	%		8.47	%		8.74	%		4.68	%		2.94	%		2.92	%		3.45	%		3.19	%		2.97	%		3.23	%		3.34	%		3.39	%		3.30	%		3.27	%		3.10	%		4.09	%		3.89	%		4.25	%		3.74	%		6.85	%		9.88	%		19.63	%
Book Value per Share (1)	$	2.47		$	2.45		$	2.52		$	4.78		$	4.81		$	5.18		$	5.11		$	5.39		$	5.52		$	8.23		$	10.28		$	14.73		$	15.21		$	15.78		$	15.65		$	15.91		$	17.36		$	17.33		$	17.13		$	16.43		$	16.02		$	15.64		$	15.37		$	15.18		$	14.95		$	14.88		$	14.72		$	14.55		$	14.03

(1)	Computed as reported BV divided by oustanding shares.
(2)	Utilizies 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												December 31, 2001												December 31, 2002												December 31, 2003												December 31, 2004												December 31, 2005
Life Reinsurance	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter
Life premiums		34,690,006			36,324,372			42,548,022			47,875,622			51,003,153			59,308,943			63,923,667			67,542,477			75,163,415			89,431,564			82,304,042			86,281,988			58,575,661			56,053,471			28,035,629			17,750,914			13,665,652			9,691,437			9,906,337			13,731,847			5,488,266			2,927,917
Net investment income		1,466,942			1,605,164			1,498,751			1,467,938			1,399,958			1,704,157			2,027,692			2,877,741			3,982,629			5,033,613			4,404,125			5,581,802			1,594,325			1,453,958			1,977,934			891,141			949,848			823,604			714,030			670,269			479,654			386,597
Total Revenues		36,156,948			37,929,536			44,046,773			49,343,560			52,403,111			61,013,100			65,951,358			70,420,219			79,146,044			94,465,177			86,708,167			91,863,790			60,169,987			57,507,429			30,013,563			18,642,054			14,615,501			10,515,041			10,620,367			14,402,116			5,967,919			3,314,514
Policyholder Benefits		32,038,096			28,971,653			35,454,847			32,796,883			40,361,817			44,033,754			73,371,548			53,154,853			57,176,440			71,565,974			77,925,339			111,461,759			68,573,550			58,156,608			17,741,449			18,180,838			10,126,936			8,598,049			3,321,096			(10,581,972	)		4,602,443			1,587,086
Expenses		2,424,402			4,860,553			4,196,248			7,764,144			7,907,171			9,602,197			13,004,348			9,421,985			13,447,202			15,280,408			14,990,085			44,569,012			36,742,604			38,689,150			11,693,345			6,991,763			4,313,985			1,182,626			4,695,812			28,614,588			1,185,795			776,549
Financing costs		—			—			—			—			—			—			—			1,200,000			1,295,704			1,053,037			3,731,580			6,867,794			—			—			—			—			—			—			—			—			—			—
Total Expenses		34,462,497			33,832,206			39,651,095			40,561,027			48,268,988			53,635,950			86,375,896			63,776,839			71,919,346			87,899,418			96,647,003			162,898,564			105,316,155			96,845,758			29,434,795			25,172,601			14,440,920			9,780,675			8,016,909			18,032,616			5,788,237			2,363,635
Life Segment Income (Loss)		1,694,451			4,097,330			4,395,678			8,782,533			4,134,123			7,377,149			(20,424,537	)		6,643,380			7,226,698			6,565,759			(9,938,836	)		(71,034,773	)		(45,146,168	)		(39,338,329	)		578,769			(6,530,547	)		174,580			734,366			2,603,459			(3,630,500	)		179,682			950,879
Invested assets		93,223,039			92,321,040			85,898,474			98,719,458			98,053,528			126,400,607			151,311,682			264,434,485			275,563,872			302,098,565			340,711,970			303,207,491			256,932,453			242,567,939			141,914,107			126,796,271			93,133,674			101,043,377			82,596,960			74,273,340			41,820,244			37,845,733
Total Assets		132,550,727			241,491,920			269,145,189			291,657,595			304,343,877			333,362,942			401,683,367			538,181,649			566,428,888			605,018,193			657,422,016			528,577,026			446,513,145			396,766,778			273,604,371			250,732,481			216,526,757			220,280,815			197,754,315			163,747,140			128,305,222			121,460,882
Policyholder benefit liabilities		45,067,769			151,407,586			168,560,545			172,096,303			176,221,387			187,984,169			212,609,621			221,145,594			234,131,629			254,695,355			280,915,909			269,619,809			256,908,708			235,720,387			187,391,334			161,105,541			161,055,848			163,175,277			151,673,217			109,860,843			109,115,788			106,589,798
Total Liabilities		51,835,227			157,470,420			179,023,689			179,720,125			184,226,407			203,710,642			255,380,367			375,485,898			388,658,888			419,318,193			452,822,016			322,877,026			346,213,145			306,766,778			225,404,371			216,932,481			184,226,757			187,980,815			167,054,315			159,047,140			123,705,222			117,060,882
Shareholders equity		80,715,500			84,021,500			90,121,500			111,937,470			120,117,470			129,652,300			146,303,000			162,695,751			177,770,000			185,700,000			204,600,000			205,700,000			100,300,000			90,000,000			48,200,000			33,800,000			32,300,000			32,300,000			30,700,000			4,700,000			4,600,000			4,400,000
Segment Return on Equity — Annualized		9.0	%		19.9	%		20.2	%		34.8	%		14.3	%		23.6	%		-59.2	%		17.2	%		17.0	%		14.5	%		-20.4	%		-138.5	%		-139.2	%		-165.4	%		3.4	%		-63.7	%		2.1	%		9.1	%		33.1	%		-82.0	%		15.5	%		84.5	%
ROR		4.7	%		10.8	%		10.0	%		17.8	%		7.9	%		12.1	%		-31.0	%		9.4	%		9.1	%		7.0	%		-11.5	%		-77.3	%		-75.0	%		-68.4	%		1.9	%		-35.0	%		1.2	%		7.0	%		24.5	%		-25.2	%		3.0	%		28.7	%
Annuity Reinsurance
Annuity premiums and fees		3,347,601			2,949,357			3,729,451			3,855,461			5,643,471			6,964,689			8,402,936			7,523,602			6,739,601			8,795,385			6,179,721			5,358,161			4,180,500			5,513,028			2,289,632			1,871,021			1,719,921			2,168,012			1,024,405			865,786			30,636			30,677
Net investment income		21,241,480			19,889,025			17,917,534			54,736,268			17,894,195			15,797,730			13,622,109			27,321,433			20,176,153			12,599,964			12,355,845			6,222,901			19,922,631			2,253,771			16,817,569			(725,732	)		8,200,153			2,834,257			4,002,171			3,032,491			1,163,171			613,451
Total Revenues		24,589,081			22,838,382			21,646,985			58,591,729			23,537,665			22,762,419			22,025,045			34,845,035			26,915,754			21,395,350			18,535,566			11,581,062			24,103,131			7,766,799			19,107,200			1,145,289			9,920,074			5,002,269			5,026,576			3,898,277			1,193,807			644,128
Annuity Benefits		9,683,610			8,990,227			5,907,773			44,809,407			9,554,321			8,965,100			15,903,549			19,938,485			19,561,512			23,825,333			31,801,841			30,461,221			11,387,649			30,486,140			8,975,705			(1,518,312	)		3,646,972			1,993,643			7,861,951			(5,466,085	)		369,178			257,075
Expenses		11,176,398			10,884,127			11,616,811			10,125,081			18,265,791			18,463,065			31,507,297			24,055,706			4,417,842			27,307,389			4,987,368			14,311,626			20,585,958			10,344,598			13,573,014			2,658,605			4,939,490			4,222,238			1,919,844			64,387,875			387,471			429,264
Total Expenses		20,860,009			19,874,355			17,524,584			54,934,488			27,820,111			27,428,166			47,410,846			43,994,191			23,979,353			51,132,722			36,789,209			44,772,847			31,973,607			40,830,738			22,548,719			1,140,293			8,586,461			6,215,881			9,781,795			58,921,790			756,650			686,339
Annuity Segment Income (Loss), before cumulative effect of FAS 133/SOP03-1		3,729,072			2,964,027			4,122,401			3,657,241			(4,282,446	)		(4,665,746	)		(25,385,802	)		(9,149,155	)		2,936,401			(29,737,373	)		(18,253,643	)		(33,191,785	)		(7,870,476	)		(33,063,939	)		(3,441,519	)		4,996			1,333,613			(1,213,611	)		(4,755,219	)		(55,023,513	)		437,158			(42,211	)
Cumulative effect of FAS 133/SOP03-1		—			—			—			—			(3,665,735	)		—			—			—			—			—			—			—			—			—			—			—			(365,960	)		—			—			—			—			—
Annuity Segment Income (Loss)		3,729,072			2,964,027			4,122,401			3,657,241			(7,948,181	)		(4,665,746	)		(25,385,802	)		(9,149,155	)		2,936,401			(29,737,373	)		(18,253,643	)		(33,191,785	)		(7,870,476	)		(33,063,939	)		(3,441,519	)		4,996			967,653			(1,213,611	)		(4,755,219	)		(55,023,513	)		437,158			(42,211	)
Invested assets		1,549,411,492			1,484,681,045			1,403,461,868			1,499,613,767			1,458,736,475			1,456,392,079			1,562,593,817			1,492,722,891			1,483,747,426			1,471,125,940			1,462,326,418			1,446,104,341			984,719,779			798,170,410			691,161,997			657,250,211			631,385,390			598,468,291			576,064,672			56,203,120			55,284,748			52,748,923
Total Assets		1,724,828,149			1,643,051,707			1,555,032,266			1,675,647,751			1,632,014,571			1,630,980,947			1,713,508,054			1,602,020,485			1,588,375,551			1,553,294,479			1,549,867,709			1,527,343,080			1,043,908,700			849,885,167			730,598,264			695,317,546			702,159,200			666,102,422			642,979,101			59,554,009			58,374,414			55,510,806
Interest sensitive contract liabilities		1,652,943,649			1,571,873,207			1,482,253,766			1,597,985,221			1,556,532,041			1,553,833,247			1,631,111,054			1,520,316,236			1,505,945,551			1,467,194,479			1,464,667,709			1,443,143,080			998,608,700			815,685,167			704,798,264			670,717,546			677,459,200			643,402,422			621,979,101			57,754,009			56,574,414			53,810,806
Total Liabilities		1,652,943,649			1,571,873,207			1,482,253,766			1,597,985,221			1,556,532,041			1,553,833,247			1,631,111,054			1,520,316,236			1,505,945,551			1,467,194,479			1,464,667,709			1,443,143,080			998,608,700			815,685,167			704,798,264			670,717,546			677,459,200			643,402,422			621,979,101			57,754,009			56,574,414			53,810,806
Shareholders equity		71,884,500			71,178,500			72,778,500			77,662,530			75,482,530			77,147,700			82,397,000			81,704,249			82,430,000			86,100,000			85,200,000			84,200,000			45,300,000			34,200,000			25,800,000			24,600,000			24,700,000			22,700,000			21,000,000			1,800,000			1,800,000			1,700,000
Segment Return on Equity — Annualized		20.6	%		16.6	%		22.9	%		19.4	%		-22.4	%		-24.5	%		-127.3	%		-44.6	%		14.3	%		-141.2	%		-85.2	%		-156.7	%		-57.7	%		-332.7	%		-45.9	%		0.1	%		21.6	%		-20.5	%		-87.1	%		-1930.6	%		97.1	%		-9.6	%
Seg inc/Ave. Policyholder Liab — Annualized		0.9	%		0.7	%		1.1	%		0.9	%		-1.1	%		-1.2	%		-6.4	%		-2.3	%		0.8	%		-8.0	%		-5.0	%		-9.1	%		-2.6	%		-14.6	%		-1.8	%		0.0	%		0.8	%		-0.7	%		-3.0	%		-64.8	%		3.1	%		-0.3	%

Annuity & Life Re

Segment Performance Information

	December 31, 2000												December 31, 2001												December 31, 2002												December 31, 2003												December 31, 2004												December 31, 2005
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter
Corporate
Net investment income, including realized realized capital gains and (losses)		3,526,450			1,907,163			3,626,432			2,948,059			3,672,352			4,270,917			4,403,338			2,396,139			1,699,398			4,003,959			10,386,955			9,594,797			2,060,459			5,205,648			211,124			478,670			1,387,046			567,106			545,081			592,112			911,478			573,825
Expenses		1,247,097			1,340,290			1,437,672			2,324,044			1,517,258			1,513,117			1,273,474			1,601,558			1,428,867			1,126,344			1,341,492			5,248,138			1,518,631			1,519,821			1,135,278			1,130,542			1,694,885			6,518,238			1,489,025			1,572,865			2,296,983			2,022,460
Net income		2,279,353			566,874			2,188,761			624,015			2,155,093			2,757,800			3,129,864			794,581			270,532			2,877,615			9,045,463			4,346,658			541,828			3,685,827			(924,154	)		(651,872	)		(307,839	)		(5,951,132	)		(943,944	)		(980,753	)		(1,385,505	)		(1,448,635	)
Invested assets		244,947,333			254,993,063			259,775,025			253,596,024			258,975,192			261,316,480			213,182,175			156,312,422			155,554,854			131,230,105			87,295,212			(15,872,115	)		76,740,945			29,576,558			75,167,532			81,659,092			82,300,712			83,911,530			78,104,079			64,367,820			59,150,162			59,099,169
Total Assets		251,794,745			258,277,877			264,999,434			257,381,545			262,947,177			270,959,673			218,103,053			170,570,456			161,250,407			137,994,918			113,368,735			(11,221,919	)		82,205,050			32,087,049			77,216,650			83,832,312			84,886,361			86,128,401			79,890,539			66,104,207			60,354,532			60,865,474
Total Liabilities		5,441,098			4,595,910			5,320,890			5,765,769			5,378,378			10,742,871			18,157,941			12,781,614			15,698,416			18,604,634			23,926,436			10,341,370			11,587,846			9,565,313			8,637,124			7,059,733			4,951,505			14,063,895			5,519,109			6,186,995			2,096,101			1,949,337
Shareholders equity		246,353,647			253,681,967			259,678,544			251,615,776			257,568,799			260,216,802			199,945,112			157,788,842			145,551,991			119,390,284			89,442,299			(21,563,289	)		70,617,204			22,521,736			68,579,526			76,772,579			79,934,856			72,064,506			74,371,430			59,917,212			58,258,431			58,916,137
Segment Return on Equity — Annualized		3.7	%		0.9	%		3.4	%		1.0	%		3.4	%		4.3	%		5.4	%		1.8	%		0.7	%		8.7	%		34.7	%		51.2	%		3.7	%		31.7	%		-8.1	%		-3.6	%		-1.6	%		-31.3	%		-5.2	%		-5.8	%		-9.4	%		-9.9	%
Consolidated
Net premiums and fees		38,037,607			39,273,729			46,277,473			51,731,083			56,646,624			66,273,633			72,326,603			75,066,079			81,903,016			98,226,950			88,483,763			91,640,149			62,756,161			61,566,499			30,325,261			19,621,935			15,385,573			11,859,449			10,930,742			14,597,633			5,518,902			2,958,594
Net investment income, including realized capital gains and (losses)		26,234,872			23,401,352			23,042,717			59,152,265			22,966,504			21,772,804			20,053,139			32,595,314			25,858,180			21,637,536			27,146,925			21,399,501			23,577,416			8,913,377			19,006,627			644,078			10,537,048			4,224,967			5,261,282			4,294,871			2,554,303			1,573,873
Total Revenues		64,272,479			62,675,081			69,320,190			110,883,348			79,613,128			88,046,437			92,379,742			107,661,393			107,761,196			119,864,485			115,630,688			113,039,650			86,333,577			70,479,876			49,331,887			20,266,013			25,922,621			16,084,416			16,192,024			18,892,505			8,073,205			4,532,467
Policyholder Benefits		41,721,706			37,961,880			41,362,620			77,606,290			49,916,138			52,998,854			89,275,097			73,093,339			76,737,951			95,391,307			109,727,180			141,922,980			79,961,199			88,642,748			26,717,155			16,662,526			13,773,908			10,591,692			11,183,047			(16,048,057	)		4,971,621			1,844,161
Expenses		14,847,897			17,084,970			17,250,731			20,213,269			27,690,220			29,578,379			45,785,119			35,079,249			19,293,910			43,714,140			21,318,944			64,128,777			58,847,194			50,553,568			26,401,637			10,780,910			10,948,359			11,923,102			8,104,682			94,575,328			3,870,249			3,228,274
Financing costs		—			—			—			—			—			—			—			1,200,000			1,295,704			1,053,037			3,731,580			6,867,794			—			—			—			—			—			—			—			—			—			—
Total benefits and expenses		56,569,603			55,046,850			58,613,351			97,819,559			77,606,358			82,577,233			135,060,216			109,372,588			97,327,566			140,158,484			134,777,704			212,919,551			138,808,393			139,196,316			53,118,792			27,443,436			24,722,267			22,514,794			19,287,729			78,527,271			8,841,870			5,072,435
Net income (loss), before cumulative effect of FAS 133/SOP03-1		7,702,876			7,628,231			10,706,839			13,063,789			2,006,770			5,469,204			(42,680,474	)		(1,711,195	)		10,433,630			(20,293,999	)		(19,147,016	)		(99,879,901	)		(52,474,816	)		(68,716,440	)		(3,786,905	)		(7,177,423	)		1,200,354			(6,430,378	)		(3,095,705	)		(59,634,766	)		(768,665	)		(539,968	)
Cumulative effect of FAS 133/SOP03-1		—			—			—			—			(3,665,735	)		—			—			—			—			—			—			—			—			—			—			—			(365,960	)		—			—			—			—			—
Net Income (Loss)		7,702,876			7,628,231			10,706,839			13,063,789			(1,658,965	)		5,469,204			(42,680,474	)		(1,711,195	)		10,433,630			(20,293,999	)		(19,147,016	)		(99,879,901	)		(52,474,816	)		(68,716,440	)		(3,786,905	)		(7,177,423	)		834,394			(6,430,378	)		(3,095,705	)		(59,634,766	)		(768,665	)		(539,968	)
Invested assets, including funds withheld		1,887,581,864			1,831,995,148			1,749,135,367			1,851,929,249			1,815,765,195			1,844,109,166			1,927,087,675			1,913,469,798			1,914,866,152			1,904,454,610			1,890,333,600			1,733,439,717			1,318,393,177			1,070,314,907			908,243,636			865,705,574			806,819,776			783,423,198			783,423,198			194,844,280			156,255,154			149,693,825
Total Assets		2,109,173,621			2,142,821,504			2,089,176,889			2,224,686,891			2,199,305,625			2,235,303,562			2,333,294,474			2,310,772,590			2,316,054,846			2,296,307,590			2,320,658,460			2,044,698,187			1,572,626,895			1,278,738,994			1,081,419,285			1,029,882,339			1,003,572,318			972,511,638			920,623,955			289,405,356			247,034,168			237,837,162
Policyholder benefit and interest sensitive contract liabilities		1,698,011,418			1,723,280,793			1,650,814,311			1,770,081,524			1,732,753,428			1,741,817,416			1,843,720,675			1,741,461,830			1,740,077,180			1,721,889,834			1,745,583,618			1,712,762,889			1,255,517,408			1,051,405,554			892,189,598			831,823,087			838,515,048			806,577,699			773,652,318			167,614,852			165,690,202			160,400,604
Total Liabilities		1,710,219,974			1,733,939,537			1,666,598,345			1,783,471,115			1,746,136,826			1,768,286,760			1,904,649,362			1,908,583,748			1,910,302,855			1,905,117,306			1,941,416,161			1,776,361,476			1,356,409,691			1,132,017,258			938,839,759			894,709,760			866,637,462			845,447,132			794,552,525			222,988,144			182,375,737			172,821,025
Shareholders equity		398,953,647			408,881,967			422,578,544			441,215,776			453,168,799			467,016,802			428,645,112			402,188,842			405,751,991			391,190,284			379,242,299			268,336,711			216,217,204			146,721,736			142,579,526			135,172,579			136,934,856			127,064,506			126,071,430			66,417,212			64,658,431			65,016,137
Segment Return on Equity — Annualized		7.8	%		7.6	%		10.3	%		12.1	%		1.8	%		4.8	%		-38.1	%		-1.6	%		10.3	%		-20.4	%		-19.9	%		-123.4	%		-86.6	%		-151.5	%		-10.5	%		-20.7	%		3.5	%		-19.5	%		-9.8	%		-247.8	%		-4.7	%		-3.3	%