Bermuda life reinsurer Annuity & Life Re says it lost $768,665 in the first three months of the year.

The loss compared to earnings of $834,394 in the same period a year ago. The results broke down for investors to a loss of three cents per share compared to earnings of three cents per share in the same period of 2004.

This last quarter's loss ? with the company having struggled through poor financial results for some time ? is not good news for the beleaguered Annuity & Life Re.

Annuity's (ANR) woes last year led to shareholder loss of confidence which pushed down the company's share price to prolonged trading below $1, prompting ANR's eventual delisting from the New York Stock Exchange last July.

ANR, which now trades on the Over the Counter (OTC) stock exchange, was the first life reinsurer to hang out its shingle in Bermuda.

The company's troubles can largely be linked to a contract it had with Transamerica Reinsurance. At the end of 2004, ANR said it had been able to come to an agreement to terminate the company's annuity reinsurance agreement with Transamerica.

Last year ANR posted a net loss of $68 million. Of that, $60.6 million was taken as a charge related to the termination of the Transamerica agreement. In the first three months of this year, ANR said it paid a further $39.6 million in connection with a novation and recapture transaction of two of its largest life reinsurance agreements to Transamerica. Management did not return calls from yesterday.