Bermuda-based Annuity and Life Re (Holdings) Ltd. yesterday reported net income of $19.46 million or 76 cents a share for the company's first nine months of operation.

Net income for the quarter ended December 31 was $9.23 million or 34 cents a share. Net operating income, excluding realised gains on investments was $16.79 million a share for the nine months.

In the third quarter Annuity and Life Re had net operating income of $7.72 million. Total revenue for the quarter was $34.16 million, compared to $16.45 million for the quarter ended September 30, 1998.

Operating expenses were five percent of total revenue. Annuity president and chief executive officer Lawrence Doyle said the $1.71 million in expenses in the quarter was in line with the company's goal to be a low cost provider.

"Our company has established a position in the annuity and life reinsurance marketplace,'' he said. "The fundamentals of the life reinsurance sector are most favourable and we expect to capitalise on these growth opportunities.'' The company had net premiums of $17.88 million in the third quarter and investment income of $14.46 million before expenses. Net realised investment gains were $1.51 million.

The company paid out claims and other policy benefits of $16.89 million.

Policy acquisition costs and expenses were $6.34 million. Operating expenses came to $1.71 million.