Annuity and Life Re (Holdings) Ltd. reported a net loss of approximately $60 million or $2.30 per diluted share for the three months ended December 31, 2004, and a net loss of approximately $68 million or $2.64 per diluted share for 2004. This compares to a net loss of $132 million in 2003.

In their earnings press release, the company said the fourth quarter 2004 loss included a $60.6 million charge related to the termination of the company?s annuity reinsurance agreement with Transamerica and the related novation of its two largest life reinsurance agreements to Transamerica.

Jay Burke, the Chief Executive Officer of the company said: ?We are very pleased that the Company and Transamerica were able to work together in a mutually beneficial way to terminate the annuity reinsurance agreement between the companies.

?The agreement has been a long standing source of losses for us. The termination of this agreement marks the resolution of a significant contingency that has impeded our ability to pursue strategic alternatives.