Bermuda-based Scottish Re announced yesterday chief executive officer George Zippel's term of employment will be cut short and will terminate on July 31 this year.

In addition, chief financial officer Terry Eletheriou's term of employment has been extended until March 31, 2010. Both decisions are based on the company's change of strategy, announced last month.

The company said it may sell its international life reinsurance and wealth management units, and plans to cut costs after suffering mortgage-related losses and a credit rating downgrade.

The life reinsurer announced the changes less than a year after receiving a $600 million injection from private equity firm Cerberus Capital Management LP and MassMutual Financial Group's affiliate MassMutual Capital Partners LLC, giving them a majority stake in the company.

An 8-K document filed with the US Securities and Exchange Commission yesterday showed that, as part of the termination agreement, Mr. Zippel will receive a $500,000 bonus in addition to his scheduled 2007 bonus, as well as another $750,000 bonus when his employment with the company ends.

At the date of his termination, Mr. Zippel will also receive 175 percent of the amount of his base salary in a lump sum.

Scottish Re's shares fell 10 percent yesterday to close on a 52-week low of 36 cents.

Scottish Re chairman Jonathan Bloomer said: "George joined Scottish Re in August 2007 to execute a global growth strategy that, given our sub-prime exposure and prevailing market conditions, is no longer considered viable. He has been instrumental in working with the board to identify and develop new strategies for the company.

"The board believes that the actions required to affect those strategies should be materially complete by the middle of this year. Accordingly, the board and George have agreed to shorten the length of his employment agreement.

Mr. Zippel said: "Scottish Re has been a challenging and rewarding experience. I look forward to continuing to lead the team through a successful transition to the new strategic focus."

The board has formed a committee to lead the search for a new CEO and has retained an international executive search firm to assist it.