Scottish Re posts big loss
Bermuda-based Scottish Re Group Ltd. last night declared a net operating loss of $228.4 million for the fourth quarter of 2006 and a loss of $368.3 million for the year.
“We are disappointed with the results for the quarter, but are pleased with our ability to maintain our business throughout this very difficult period,” Paul Goldean, chief executive officer of Scottish Re, said. “Although the consequences of the rating downgrades have continued to impact our operating results, we are confident that the proposed transaction with MassMutual Capital and Cerberus will significantly improve our financial situation and stabilise the company as we move into the second quarter of 2007.”
Scottish Re put itself up for sale in July after posting a surprise second-quarter operating loss because of a tax expense and reported Scott Willkomm had quit as CEO. Its debt ratings were subsequently cut to junk.
Shareholders meet in Hamilton on Friday to vote on the proposed take-over.
