A profit of $58,948 was made by Annuity and Life Re during the first quarter of 2007 compared to a $355,552 loss over the same period a year ago.

Investment gains for the three months were $170,101, again a turn around year-on-year from a $360,863 loss. The company's investment portfolio currently maintains an average credit quality of "AA".

Cash used by operations for the first three months of 2007 was $177,062 compared to $3.9m for the opening three months of 2006.

Annuity's dispute with Transamerica concerning an agreement to novate certain reinsurance contracts to Transamerica effective December 31, 2004 remains unresolved, pending review by an independent actuary and settlement negotiations.