Profits at Scottish Annuity and Life Holdings have jumped by 44 percent to $7.2 million for the first quarter of 2003 after focusing on quality business and disciplined pricing.

Net income a year earlier for the Bermuda-based life insurer was $5 million and total revenue for the first three months of 2003 was $96.9 million, 81 percent more than for the same period a year earlier when it was $53.5 million.

"We are continuing to achieve solid growth in all of our business segments," said Michael C. French, chairman and chief executive officer of Scottish Annuity & Life. "Our focus on quality business with disciplined pricing and growth targets, combined with favourable industry fundamentals, causes us to expect another successful year for the company."

Net income for the quarter was $0.26 per diluted share, compared to $0.23 per diluted share for the prior year period.

Net operating earnings increased 46 percent to $9.2 million, or $0.33 per diluted share for the quarter ended March 31, 2003 as compared to $6.3 million, or $0.30 per diluted share for the prior year period. "While the first quarter of our fiscal year is typically a quiet period for the life reinsurance industry, we were particularly active both quoting and winning new business," said Scott E. Willkomm, president of Scottish Annuity & Life. "Couple that with improving pricing margins and we're off to an excellent start in 2003."

Total benefits and expenses increased to $ 89.5 million for the quarter from $48.2 million, an increase of 86 percent. The company said the increases were principally driven by growth in the company's reinsurance business, both in North America and in our International operations, and growth in investment income due to the increase in their invested asset base.

The company's total assets were $3.5 billion as of March 31, 2003. The investment portfolio including cash and cash-equivalents, but not including funds withheld at interest, totalled $1.3 billion, and had an average quality rating of "A+", an effective duration of 3.2 years and a weighted average book yield of 4.91 percent.

This compares with a portfolio balance of $1.2 billion, an average quality rating of "AA-", effective duration of 3.0 years and an average book yield of 4.93 percent as of December 31, 2002.

As of March 31, 2003, the company had about $74.3 billion of life reinsurance in force in the Reinsurance North America segment covering 1,466,700 lives with an average benefit per life of $51,000. As of December 31, 2002, the company had approximately $68.0 billion of life reinsurance in force covering 1,387,000 lives.

The company's book value per share was $18.55 at March 31, 2003 as compared to $18.24 per share at December 31, 2002.

For more information go to www.scottishannuity.com.