Met Life recaptures Annuity Life Re business

The panel in the arbitration proceeding between Annuity and Life Re (Holdings), and Met Life has ruled that Annuity and Life Re's rate increase instituted in January 2003 and effective March 5, 2003 is valid. As a result of the ruling, Met Life has chosen to recapture the business. In the fourth quarter of 2003 the Company will reverse premium revenue, benefits and expenses associated with the contract for the period March 6, 2003 through September 30, 2003. While the terms of the recapture with Met Life are still being finalised, the net impact of these reversals, offset by the cost associated with the recapture, is not expected to have a material adverse effect on net income for the fourth quarter of 2003, according to Annuity and Life Re.