Scottish Re says market forces company to alter strategic focus

By Lisa Kerner

Charlotte, N.C., Feb. 22 - Scottish Re Group Ltd.'s board of directors adopted the recommendations of its special committee on Feb. 21, including the potential sale of non-core assets or businesses.

As a result, the company said it will now actively pursue the following strategies:

• Pursue dispositions of the company's non-core assets or lines of business;

• Develop, through strategic alliances or other means, opportunities to maximize the value of Scottish Re's core competitive capabilities within the North American Life Reinsurance segment; and

• Rationalize the company's cost structure to preserve capital and liquidity.

Scottish Re said it altered its strategic focus in response to prevailing market conditions, including the continuing deterioration in the market for subprime and Alt-A residential mortgage-backed securities, according to a company news release.

The company also cited Standard & Poor's lowering of Scottish Re's ratings to BB (marginal) from BB+ and placing the ratings on CreditWatch with negative implications.

On Jan. 21, Scottish Re formed the special committee to evaluate, with a financial adviser, alternatives developed by management.

Scottish Re is a global life reinsurance specialist located in Hamilton, Bermuda.

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