Bermuda-based life reinsurer Scottish Re Group Ltd. announced net income of $2.3 billion for 2009, driven by sales of its businesses and other one-time items.

The company, which has stopped writing new business and is in run-off, announced the earnings, which broke down to $10.56 per share, late on Friday. In 2008, Scottish Re posted a net loss of $2.71 billion, or $39.63 per share.

Scottish Re made a pre-tax gain of $704 million associated with the sale to Hannover Re of a block of US individual life reinsurance business acquired by the Company from ING in 2004.

Another significant item was the $1.15 billion gain generated by the de-consolidation of Ballantyne Re plc from the company's consolidated financial statements.

The consolidation of the Stingray funding arrangement following the Company's discounted purchases of a majority of the outstanding Stingray pass-through certificates, generated another $254 million gain.

Scottish Re also experienced net realised and unrealised gains of $243 million resulting from an overall market recovery of fixed maturity investments.