KPMG Bermuda could be paying out $10.5 million in a class action settlement to be heard this June.

According to a press release dated March 14, 2008, the action has been certified as a class action for settlement purposes only and a $10.5 million cash settlement has been proposed.

It stems from previous class action involving Annuity and Life Re (Holdings) Ltd. KPMG Bermuda was ANR's outside accountant during the period between March 15, 2000 and November 19, 2002 when it is alleged that ANR understated a portion of its liabilities and expenses.

A hearing will be held before Senior Judge Ellen Bree Burns in the US Courthouse in New Haven, Connecticut June 5, 2008 to determine whether the proposed settlement should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Plaintiffs' Counsel for attorneys' fees and reimbursement of expenses.

The proposed KPMG Bermuda settlement is in addition to a prior $16.5 million settlement with ANR, XL Capital, Ltd. and certain of ANR' s officers and directors, which was approved by the Court on January 21, 2005.

According to the docket, on January 27, 2005, the Court granted the motion for proposed class action settlement, certification of settlement class and petition for award of attorneys' fees and reimbursement of expenses. The Court entered the order and final judgement.

Any objections to the KPMG Bermuda settlement must be made by May 7, 2008.