Troubled Bermuda-based reinsurer Annuity and Life Re (Holdings), Ltd. announced yesterday that it was delaying the release of its fourth quarter earnings.

the company said the delay was "principally due to the Company's continuing analysis of its previously announced fourth quarter loss" and said it will release the results as practicable after the completion of its analysis of the fourth quarter loss and the completion of the audit of its financial statements for the year ended December 31, 2002.

Annuity Re announced on February 25 that it had stopped writing new policies and expect to report "significant losses for the fourth quarter of 2002".

Owing to what it described as "adverse mortality" rates, the company (Annuity) have had to boost reserves in the fourth quarter to deal with unexpectedly high levels of reported claims in the life reinsurance business.

The company had previously reported a $59 million exposure on its largest guaranteed minimum death benefit contract, unrealised losses from embedded derivatives, and a high level of expenses related to the company's efforts to raise capital.

Despite significant progress in collateral requirements under its various reinsurance treaties, it has not yet satisfied all such requirements as of December 31, 2002, Annuity said.

Annuity is currently contesting levels of collateral obligations required to be satisfied by one ceding company and is also continuing its efforts to raise capital and to negotiate the recapture, retrocession, novation or sale of certain of its reinsurance contracts.

Annuity's sole business is reinsuring life and annuity insurance contracts in the US and Canada which provide a one-off payment (in the case of the life insurance) or a guaranteed periodic payment (in the case of the annuity insurance) in exchange for fixed amounts of yearly premiums.

Their difficulties were highlighted in November last year when they announced that they would be restating financial results for 2000, 2001 and the first and second quarters of 2002.