Net income attributable to ordinary shareholders is $1.7 billion

Scottish Re Group Limited (Scottish Re) has declared its unaudited financial statements for the three month period, ended March 31, 2009.

According to the financial statements of the company, net income attributable to ordinary shareholders is $1,711 million, as compared to a net loss of $735 million for the same period of previous year.

The company stated that the net income attributable to ordinary shareholders was due to a $642 million gain incurred with the sale of a block of individual life reinsurance business to Hannover Ruckversicherung (Hannover Re). The company had acquired this business from ING in 2004. Net income was also attributed to a $1,150 million non-cash profit generated by the de-consolidation of Ballantyne Re plc (Ballantyne Re).

Ballantyne Re is a special purpose reinsurance vehicle incorporated under the laws of Ireland. The company claims that the de-consolidation of Ballantyne Re has reduced its consolidated total assets and liabilities by approximately $885 million and $2,035 million, respectively.