Bermuda-based reinsurer Annuity and Life Re (Holdings) Ltd. has resolved its disputes with Transamerica over its reinsurance contracts with F&G and Scottish Re. The novations were effective December 31, 2004, and had been the subject of arbitration and other proceedings.

Annuity will pay Transamerica $3 million.

The settlement agreement regarding the Scottish Re business was a three-party agreement among Annuity, Transamerica and Scottish Re. Annuity will pay Transamerica $2.5 million and Scottish Re $11,067,208 to settle all claims.