Annuity & Life Re Fourth Quarter 2007 Earnings Report & Shareholder Distribution

HAMILTON, BERMUDA -- (MARKET WIRE) -- 04/04/08 -- Annuity and Life Re (Holdings), Ltd. (PINKSHEETS: ANNRF) today reported financial results for the three months and year ended December 31, 2007. The Company reported a net loss of $(16,957,644) or $(.69) per fully diluted share for the three months ended December 31, 2007, as compared to a net gain of $82,171 or $.00 per fully diluted share for the three months ended December 31, 2006. The Company reported a net loss of $(18,648,815) or $(.75) per fully diluted share for the year ended December 31, 2007, as compared to a net loss of $(1,129,030) or $(.05) per fully diluted share for the year ended December 31, 2006.

There were no net realized investment gains or losses for the three months ended December 31, 2007 as compared with net realized investment losses of $(52,460) for the three months ended December 31, 2006. Net realized investment gains for the year ended December 31, 2007 were $94,780, as compared with net realized investment losses of $(887,061) for the year ended December 31, 2006.

Gross unrealized gains on the Company's investments were $67,931 as of December 31, 2007, as compared to gross unrealized losses of $(103,908) at December 31, 2006. The Company's investment portfolio currently maintains an average credit quality of AA. Cash used by operations for the year ended December 31, 2007 was $259,549 as compared to cash used by operations of $(3,365,040) for the year ended December 31, 2006.

In February 2008 the Company settled its dispute with Transamerica concerning an Agreement to novate certain reinsurance contracts to Transamerica effective December 31, 2004 and also closed on the sale of its U.S. operating subsidiary. (For additional information, please refer to Notes 3 and 11 to the Company's financial statements.)

The Company continues to explore strategic alternatives to attempt to maximize its economic value for shareholders. As a first step, the Board of Directors has declared a cash distribution (return of capital) of $0.50 per share on the Company's common shares. The distribution will be payable May 15, 2008 to shareholders of record on April 30, 2008.

Annuity and Life Re (Holdings), Ltd. provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity and Life Reassurance, Ltd. and Annuity and Life Reassurance America, Inc.

This press release and the Company's financial statements are available from the Company's website at www.alre.bm.

CONTACT: Bill Mawdsley Annuity & Life Re (Holdings), Ltd. 441-296-7667

2008-04-04 17:30:38 0328697 MARKETWIRE