Scottish Annuity & Life Holdings, Ltd.'s purchase of World-Wide Holdings Ltd. appears to be paying off as the Bermuda-based insurer yesterday reported its net operating earnings had jumped 78 percent.

Scottish Annuity, which bought World-Wide in December, 2001, said yesterday that net operating earnings increased to $14.6 million, or $0.52 per diluted share for the quarter ended December 31, 2002 from $8.2 million, or $0.49 per diluted share for the same period in 2001.

Net operating earnings for the year ended December 31, 2002 increased 94 percent to $41.8 million, or $1.58 per diluted share from $21.6 million, or $1.31 per diluted share for the prior year period.

Net income for the quarter, which includes realised investment gains and losses, and amortisation of acquisition costs, shot up to $12.7 million, or $0.45 per diluted share, up from $3.7 million, or $0.22 per diluted share, for the prior year period.

Net income for the 2002 year almost doubled to $32.5 million, or $1.23 per diluted share, from $16.8 million, or $1.02 per diluted share for the prior year period.

"The contribution to net income by World-Wide Holdings Limited, which was acquired by the company on December 31, 2001, amounted to $5.9 million and $12.7 million during the quarter and year, respectively," a statement from Scottish Annuity said.

"Once again, this financial report highlights the completion of another successful year devoted to building Scottish Annuity & Life's earnings power and franchise value," said Michael C. French, chairman and chief executive officer of Scottish Annuity & Life. "The result is that net operating earnings per share increased 21 percent over last year's results. This is a significant achievement considering that our diluted shares outstanding increased over 61 percent during the same period."

Total revenue for the quarter increased to $108.8 million from $43.3 million for the prior year period, an increase of 151 percent. Excluding realised gains and losses, total revenue for the fourth quarter increased to $110.8 million from $48.0 million for the prior year period, an increase of 131 percent.

Total revenue for the year increased 153 percent to $305.9 million from $121 million. Scottish Annuity said the increases were principally driven by the acquisition of World-Wide and growth in the company's reinsurance business and investment income. Excluding World-Wide, total revenue for the quarter and year amounted to $78.7 and $225.4 million, respectively, up 82 percent and 86 percent over the prior year periods.

Total benefits and expenses increased to $98.5 million for the quarter from $40.3 million for the prior year period, an increase of 144 percent, and to $275.6 million from $103.7 million in the year, an increase of 166 percent, largely due to the World-Wide acquisition.