Annuity and Life Re (Holdings) Ltd. on Friday reported a $16.9 million loss for the fourth quarter of 2007.

And the Bermuda-based company announced it will give back capital to shareholders starting with a 50-cent-per-share payment next month.

The cash distribution will be payable on May 15, 2008 to shareholders of record on April 30, 2008.

Annuity's fourth-quarter loss, which amounted to 69 cents per share, compared to a profit of $82,171 in the same three-month period in 2006. And the company also reported a full-year net loss of $18.6 million, or 75 cents per share, for 2007, as compared to a net loss of $1.1 million, or five cents per share for 2006.

There were no net realised investment gains or losses for the fourth quarter. That compared with investment losses of $52,460 for the same period a year earlier.

Net realised investment gains for 2007 were $94,780, as compared with net realised investment losses of $887,061 for 2006. Annuity's investment portfolio currently maintains an average credit quality of AA.

In February, Annuity announced it had resolved its disputes with Transamerica and Scottish Re. The company paid Transamerica $3 million to novate reinsurance contracts.

The settlement agreement regarding the Scottish Re business was a three-party agreement among Annuity, Transamerica and Scottish Re. Annuity will pay Transamerica $2.5 million and Scottish Re $11 million to settle all claims.