moving its headquarters out of Cayman and to Bermuda because "Bermuda is the capital of the global industry''.

Scottish Annuity & Life Holdings Ltd., which is listed on the Nasdaq under the ticker symbol SCOT, announced yesterday that it is planning to move its corporate and international reinsurance operations to Bermuda in July.

It is not yet known how many staff the operation will bring to Bermuda or where the company's offices will be when it moves.

But the company said it was making the move to take advantage of the global insurance business which passes through Bermuda.

"Bermuda is the capital of the global insurance industry,'' said the Company's chairman and chief executive officer Michael French.

Scottish Annuity, incorporated in 1998 in the Cayman and completed its initial public offering in the same year, provides insurance for the very wealthy as well as life reinsurance.

It provides in-force blocks of annuity and life insurance obligations and customised variable life insurance products to high net worth individuals.

It was set up with $250 million of capital in Cayman as the island began to pick up speed as a rival to Bermuda as a reinsurance jurisdiction.

Mr. French added: "While the Cayman Islands have provided an excellent home for the company, the long-term growth and success of our business will significantly benefit from being in the global insurance business flow that passes through Bermuda.'' The company said it is applying to Bermuda authorities for permission to conduct its holding company operations from Bermuda.

It is also applying to redomesticate its flagship subsidiary, Scottish Annuity & Life Insurance Company (Cayman) Ltd., to Bermuda.

"We already have a presence in Bermuda through Scottish Annuity & Life International Insurance Company (Bermuda) Ltd. and through Scottish Crown,'' said the Company's President and Chief Financial Officer, Scott E. Willkomm.

"This move to Bermuda is just another initiative to further enhance the company's competitive position in the industry and build long-term value for shareholders.

"Holding company functions such as finance and investments will move to Bermuda, as well as international reinsurance activities such as actuarial, pricing and administration,''said Mr. Willkomm.

"We expect to continue to build our wealth management business and maintain the underwriting and administration of that business in Grand Cayman.'' The company said it has leased office space in Hamilton and anticipates commencing operations in Bermuda in July, but the relocation is subject to various approvals that the company said it anticipates receiving in the next few months.

Scottish Annuity has two wholly-owned subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and The Scottish Annuity Company (Cayman) Ltd., which was incorporated in the Cayman in 1994 and acquired in 1999.

Scottish Re (US) Inc, formerly Harbourton Reassurance Inc., is a Delaware reinsurance company acquired in 1999 and provides reinsurance to life insurance companies. It is licensed to do business in the US by 15 states and is administered as a reinsure in an additional 29 states.

In June 2000, the Scottish Annuity acquired 50.01 percent holding in Scottish Crown Group (Bermuda) Ltd. According to Securities and Exchange Commission filings, "as of December 31, 2000, Scottish Crown owned two Bermuda-licensed insurance companies that are engaged in the issuance of variable insurance policies to high net worth individuals''.

In February 2001, Scottish Holdings (US) Inc., a wholly-owned subsidiary of Scottish Annuity, acquired 100 percent of one of these insurance companies.