SCOTTISH ANNUITY & LIFE PACIFIC LIFE
NEWS RELEASE
For further information:
Scott E. Willkomm John A. Soller
Scottish Annuity & Life Holdings, Ltd. Pacific Life Insurance Company
(441) 298-4364 (949) 219-3416
scott.willkomm@scottishannuity.com john.soller@pacificlife.com
For Immediate Release
Scottish Annuity & Life Holdings, Ltd.
Completes Acquisition of World-Wide Reassurance;
Pacific Life Becomes Largest Shareholder of Scottish Annuity
HAMILTON, Bermuda and NEWPORT BEACH, California - December 31, 2001 -
Scottish Annuity & Life Holdings, Ltd. (Nasdaq:SCOT) and Pacific Life Insurance
Company announced today that Scottish Annuity had completed the acquisition of
World-Wide Reassurance Company Limited and its parent company World-Wide
Holdings Limited, from Pacific Life, in exchange for 4,532,380 newly-issued
ordinary shares of Scottish Annuity. The number of Scottish Annuity shares
issued to Pacific Life was computed based upon an agreed upon value of of $78
million and the average closing price of Scottish Annuity's shares for the
twenty trading days ending December 20, 2001 of $17.2095.
As a result of the transaction, Pacific Life becomes the largest
shareholder of Scottish Annuity, with ownership representing approximately 22.5%
of Scottish Annuity's outstanding ordinary shares. In connection with the
transaction, Glenn S. Schafer, president of Newport Beach, CA-based Pacific
Life, and Khanh T. Tran, executive vice president and chief financial officer of
Pacific Life, have joined the Board of Directors of Scottish Annuity.
World-Wide Reassurance, based in Windsor, England, provides life
reinsurance primarily to insurance companies outside the United States, and also
serves as a retrocessionaire to U.S. reinsurance companies.
"This completion of this transaction is an important step in our continuing
quest to build value for all of our shareholders," said Michael C. French,
chairman and chief executive officer of Scottish Annuity. "Not only are we
acquiring a respected global life reinsurance operation, but we are welcoming
Pacific Life as a strategic investor and partner with our company. We look
forward to supporting the continued growth of World-Wide Reassurance's business
and to leveraging the benefits of our relationship with Pacific Life."
"We are pleased to become a strategic investor in Scottish Annuity," said
Thomas C. Sutton, chairman and chief executive officer of Pacific Life. "This
partnership allows us to transition and further enhance our investment in the
life reinsurance business."
"The business of World-Wide Reassurance and the expertise of its management
and staff complement the franchise we are building at Scottish," said Scott E.
Willkomm, president of Scottish Annuity. "As a result of this transaction, we
have increased the geographic reach of the company and our consolidated capital
to well in excess of $300 million and have significantly enhanced the earnings
power of the enterprise."
According to Paul A. Bispham, managing director of World-Wide Reassurance,
"We are excited to become a part of the Scottish Annuity family. This new
affiliation will allow us increased access to capital markets to further our
plans for continued growth and will ensure the continuity of our management
team." World-Wide Reassurance will continue to do business using its existing
name.
Scottish Annuity & Life Holdings, Ltd. provides reinsurance of life
insurance and annuities and is a direct issuer of customized variable life and
annuity products for high net worth individuals. Scottish Annuity has operating
companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland and Grand
Cayman. Its flagship subsidiaries, Scottish Annuity & Life Insurance Company
(Cayman), Ltd. and Scottish Re (U.S.), Inc., are rated A (Strong) by Fitch, A-
(Excellent) by A.M. Best and A- (Strong) by Standard and Poor's. Additional
information about Scottish Annuity can be obtained from its Web site,
www.scottishannuity.com.
Founded in 1868, Pacific Life provides life and health insurance products,
individual annuities, mutual funds, and group employee benefits, and offers to
individuals, businesses, and pension plans a variety of investment products and
services. Over the past five years, the company has grown from the 23rd to the
14th largest life insurance company in the United States./1/ The Pacific Life
family of companies manages more than $345 billion in assets, making it one of
the largest financial institutions in America, and currently counts 81 of the
100
largest U.S. companies as clients./2/ Additional information about Pacific Life
can be obtained at its Web site, www.PacificLife.com.
Pacific Life is rated A++ (superior) by A.M. Best, AA+ (very strong) by
Standard & Poor's, AA+ (very strong) by Fitch, and Aa3 (excellent) by Moody's
for financial strength./3/ Pacific Life is a member of IMSA (Insurance
Marketplace Standards Association), whose membership promotes ethical market
conduct for individual life insurance and annuities.
Certain statements included herein are "forward-looking statements" within
the meaning of the federal securities laws. The management of Scottish Annuity &
Life Holdings, Ltd. (the "Company") cautions that forward-looking statements are
not guarantees, and that actual results could differ materially from those
expressed or implied in the forward-looking statements. Important events that
could cause the actual results of operations or financial condition of the
Company to differ include, but are not necessarily limited to, the Company's
ability to attract clients and generate business; the competitive environment;
the Company's ability to underwrite business; performance of outside service
providers; mortality risk; surrender risk; investment risk (including asset
value risk, reinvestment risk and disintermediation risk); the impact of
unforeseen economic changes (such as changes in interest rates, currency
exchange rate, inflation rates, recession and other external economic factors);
the impact of terrorist activities on the economy, the insurance and related
industries in general and the Company in particular; regulatory changes (such as
changes in U.S. tax law and insurance regulation which directly affect the
competitive environment for the Company's products); rating agency policies and
practices; and loss of key executives. Investors are also directed to consider
the risks and uncertainties discussed in documents filed by the Company with the
Securities and Exchange Commission.
Mutual funds are distributed by Pacific Select Distributors, Inc (member NASD &
SIPC), a subsidiary of Pacific Life Insurance Company. /1/ The Townsend & Schupp
Company, based on assets, as of December 31, 2000. /2/ Data compiled by Pacific
Life using the 2001 FORTUNE 500(R) list. /3/ These ratings do not apply to the
safety or performance of any separate accounts or mutual funds.
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