Bermuda-based Annuity and Life Re (Holdings) Ltd. had net income of $6.66 million, or 25 cents per common share, for the quarter ended September 30.

For the first six months of the company's operation Annuity had net income of $10.24 million, or 42 cents per common share.

Annuity was formed earlier this year after an initial public offering in April to target annuity and life reinsurance, initially in the North American market. The company began with about $356 million in capital.

Net operating income, excluding realised gains on investments, was $5.64 million for the quarter, and $9.07 million for the first six months.

The company had total revenue for the quarter of $21.41 million, including premium income of $15.03 million. Net investment income was $5.37 million, with realised gains of $1.02 million. Annuity had operating expenses of $1.19 million.

President and chief executive officer Larry Doyle said the operating expenses were in line with the company's goal of becoming a low cost provider.

"Our operating earnings are in line with our original business plan and we have been able to meet the reinsurance needs of some of the largest life and annuity writers in the United States,'' he stated in a press release.

During the quarter the company announced it had signed a life insurance transaction that will produce annual premium of $59 million during the year the business is reinsured. The company also completed a annuity reinsurance programme that will produce assets exceeding $1 billion this year.

"Interest in our company continues to grow as the more sophisticated buyer recognises that our unique operating advantages translate into a more competitive product for the customer,'' Mr. Doyle said.