Scottish Re Group Limited to Restate Basic Earnings per Ordinary Share and Diluted Earnings per Ordinary Share for the Three Months and Six Months ended June 30, 2007



    HAMILTON, BERMUDA, September 28 /CNW/ - Scottish Re Group Limited
(NYSE:  SCT), a global life reinsurance specialist, today filed a Form 8-K with
the Securities and Exchange Commission (the "SEC") indicating that on
September 12, 2007, Scottish Re Group Limited (the "Company") received
correspondence from the SEC providing several comments to certain of the
Company's public filings. Except as discussed below, the comments in the SEC's
letter predominately relate to disclosure matters the Company believes will
not result in material changes, if any, to previously reported net income or
shareholders' equity. The Company has not yet responded to the SEC's letter
and therefore, not withstanding the foregoing, cannot provide any guarantee
the SEC will concur with the Company's approach to responding to any of the
SEC's comments.

    The Form 8-K goes on to say that in conducting the review necessary to
respond to the SEC's letter, the Company determined it is required to restate
basic earnings per ordinary share and diluted earnings per ordinary share for
the three months and six months ended June 30, 2007, as reported in its Form
10-Q for such period which was filed on August 14, 2007. The Form 8-K further
goes on to say the calculation of earnings per share for such periods included
in the Form 10-Q filed on August 14, 2007 should no longer be relied upon and
that the Company intends to file an amended Form 10-Q for the quarter ended
June 30, 2007.

    The requirement to restate the Company's basic earnings per ordinary
share and diluted earnings per ordinary share arose from the Company's failure
to deduct $120.8 million attributable to the beneficial conversion feature of
the Convertible Cumulative Participating Preferred Shares issued on May 7,
2007 in calculating net loss available to ordinary shareholders for the
purposes of earnings per share, in accordance with EITF Topic D-98. The impact
of this change is a reduction in basic income per ordinary share of $1.46 to a
basic loss per ordinary share of $(0.30) for the three months ended June 30,
2007, and a reduction in basic income per ordinary share of $0.98 to a basic
loss per ordinary share of $(0.84) for the six months ended June 30, 2007. The
further impact of this change is a reduction in diluted income per ordinary
share of $0.63 to a diluted loss per ordinary share of $(0.30) for the three
months ended June 30, 2007, and a reduction in diluted income per ordinary
share of $0.58 to a diluted loss per ordinary share of $(0.84) for the six
months ended June 30, 2007.

    The $120.8 million deduction is a one time non-cash, deemed dividend and
does not have an effect on net income, comprehensive income or cash flows for
the three and six months ended June 30, 2007, nor will it have an impact on
total shareholders' equity as of June 30, 2007.

    The Company continues to communicate with the SEC and to conduct the
review necessary to respond appropriately to all of the comments in the SEC's
letter.

    About Scottish Re

    Scottish Re Group Limited is a global life reinsurance specialist.
Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey,
Ireland, Singapore, the United Kingdom and the United States. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance Company
(Cayman) Ltd., Scottish Re (U.S.), Inc., and Scottish Re Limited. Additional
information about the Company can be obtained at www.scottishre.com.




For further information:

For further information: Scottish Re Media Contact: Rayissa Palmer,
704-752-3422 or Investor Contact: George Zippel, 441-298-4397

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SCOTTISH RE GROUP LIMITED

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