Scottish Re has announced its third quarter results as substantially lower than the previous year's figures. The Bermuda-based company said this was due to revised reporting of death claims by a ceding company.
Scottish Re reported net income of US$1.6 for the third quarter, a fall of 77% from the US$7m made over the same period in 2002.
It said results had been adversely impacted by a US$12.5m charge to account for revised reporting relating to two annuity reinsurance treaties.
Scottish Re set up a review in August after discovering inconsistencies in information provided by the unidentified company. It found that death claims had been under-reported to Scottish Re since early 2000.
Michael French, chairman and chief executive of Scottish Re group said: "The charge relating to under-reported claims is a tremendous disappointment to us. However, even after adjusting for this reporting error, we expect these treaties to continue to contribute to the profitability of our annuity reinsurance business."
