Bermuda-based Scottish Re Group saw its third quarter income from continuing operations jump to $12.8 million, or 34 cents per share as compared to $1.8 million or 5 cents per share for the prior year period. Income from continuing operations for the nine months ended September 30, 2004 amounted to $50.5 million, or $1.35 per share as compared to $18.5 million or 60 cents per share for the prior year period.

Net operating earnings for the quarter rose to $20 million, or 54 cents per share, from $800,000, or 2 cents per share, a year earlier.

Net operating earnings were $53.7 million, or $1.44 per share for the nine months ended September 30, 2004 as compared to $22.7 million, or 74 cents per share for the 2003 period.

?We continue to successfully grow our business both organically and through acquisitions,? said Michael C. French, chairman and chief executive officer of Scottish Re Group Limited.

?For the quarter and nine month period ended September 30, 2004, the ERC acquisition contributed net operating earnings in line with our expectations for that business.?

Mr. French added: ?Clearly, the company is exceptionally well positioned to deliver earnings growth, book value per share growth and expanding returns on equity consistent with our long-term plans to build value for all shareholders.?

The global life reinsurance specialist, which recently purchased the life reinsurance assets of Netherlands-based ING Group reported that total benefits and expenses increased 60 percent to $560.8 million from $350.4 million.

The increases in both total revenues and total benefits and expenses were principally driven by the acquisition of Scottish Re Life Corporation (previously ERC Life) and growth in the company?s reinsurance business in North America.

Total revenue for the quarter increased 47 percent to $198.1 million from $134.6 million for the prior year period.

Total revenue for the nine months ended September 30, 2004 increased 68 percent to $606.1 million from $360.9 million for the prior year period.

As of September 30, 2004, Scottish Re had approximately $307.4 billion of life reinsurance in force covering 7.5 million lives with an average benefit per life of $41,000 in our North American operations.

As of December 31, 2003, the company had approximately $275.0 billion of life reinsurance in force covering 6.2 million lives with an average benefit per life of $43,000.

?Our operating expenses were approximately $0.02 to $0.03 higher than expected due to professional fees incurred in the quarter related to Sarbanes-Oxley Section 404 implementation,? said Scott E. Willkomm, president of Scottish Re Group Limited.

?Our mortality experience continues to be favourable, with actual experience in the third quarter of the year at about 98 percent of expected levels.?

The company?s book value per share was $20.08 at September 30, 2004 as compared to $18.73 per share at December 31, 2003.