Annuity And Life Re Names New Auditing Firm

KPMG has included a few significant observations about Annuity and Life Re's financial statements in its audit reports, according to a report that Annuity and Life Re has filed with the U.S. Securities and Exchange Commission.

Burke served both as chief executive and chief financial officer of Annuity and Life Re for several quarters before the company hired John Lockwood to take over as CFO.

KPMG suggested in May 23, 2003, that the company needed a separate CFO and more accounting support for the CFO to prevent accounting mistakes, Annuity and Life Re says.

KPMG welcomed the appointment of Lockwood as CFO in a letter dated March 24, 2004, but KPMG says Annuity and Life Re still needs to simplify and strengthen the process for accounting for a major reinsurance contract, Annuity and Life Re says.

KPMG also has suggested in audit reports on the company's 2002 and 2003 financial statements that there are questions about whether Annuity and Life Re can continue as a going concern, Annuity and Life Re says.

KPMG has not included any other adverse opinions, disclaimers or qualifications in its audit reports, Annuity and Life Re says.