Scottish Re Group Limited Announces Termination of Delaware Department of Insurance Supervision of Scottish Re (U.S.), Inc.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Scottish Re Group Limited (“Scottish Re” or the “Company”) (Pink Sheets: SKRRF) announced today that the Order of Supervision previously issued by the Delaware Department of Insurance (the “Department”) in respect of the Company’s primary U.S. operating company, Scottish Re (U.S.), Inc. (“Scottish Re (U.S.)”), was terminated by the Department effective June 23, 2011. In connection with the receipt by Scottish Re (U.S.) in late 2008 of a permitted statutory accounting practice (the “Permitted Practice”), Scottish Re (U.S.) consented to the issuance by the Department in January 2009 of the Order of Supervision (as the same was later amended, the “Order of Supervision”), which was to remain in place until such time as Scottish Re (U.S.) could make certain enumerated showings to the Department related to its financial strength and results of operations. The Order of Supervision required, among other things, the Department’s consent to any transaction by Scottish Re (U.S.) outside the ordinary course of business and to any transaction with or any distribution or payment to its affiliates.

Drawing on its demonstrated financial improvement since consenting to the issuance of the Order of Supervision in 2009, and the satisfaction for multiple quarters of the objective criteria set out in the Order of Supervision, Scottish Re (U.S.) requested in March 2011 that the Department terminate the Order of Supervision and notified the Department of its intention, effective upon such termination, to discontinue utilization of the Permitted Practice. Notwithstanding termination of the Order of Supervision, Scottish Re (U.S.) currently remains subject to restrictions in Delaware and in certain other states on its ability to write new reinsurance business without first obtaining regulatory consent.

“Termination of the Order of Supervision and discontinued reliance on the Permitted Practice mark the beginning of a new, positive chapter at Scottish Re (U.S.) as we put behind us the challenges we faced during the global financial crisis. In addition, it underscores the sustained improvement and current strength of the company’s capital position. These events are a testament to the dedication and hard work of our employees, and the continued support of the Department and our ceding company clients,” noted Meredith Ratajczak, President and CEO of Scottish Re (U.S.).

About Scottish Re

Scottish Re Group Limited is a global life reinsurance specialist, with operating businesses in Bermuda, Ireland, and the United States. Its operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited, and Scottish Re (U.S.), Inc. Additional information about Scottish Re Group Limited can be obtained from its web site, www.scottishre.com.