SCOTTISH RE RESTATES Q2 AND H1 RESULTS FOR ACCOUNTING MISCUE

Bermudian life reassurer Scottish Re Group said at the weekend that it will restate its Q2 and H1 results owing to its incorrect accounting for a beneficial conversion feature in its offering of convertible preferred shares on May 7. First-half results are being restated to a loss of 84¢ a share against a previously stated gain of 58¢ a share, while Q2 results have been restated as a loss of 30¢ a share against the previously reported gain of 63¢ a share. Scottish Re said that it had erroneously failed to deduct $120.8m in connection with the beneficial conversion feature of the share offering. The US Securities and Exchange Commission had questioned Scottish Re’s accounting of the offering in correspondence in early September.