Global Preferred Holdings, Inc. Announces Fourth Quarter and Year End Results.

Business Editors

ATLANTA--(BUSINESS WIRE)--March 15, 2002

Global Preferred Holdings, Inc. announced a 6% increase in net income for the year ended December 31, 2001, over the same period in 2000.

Global Preferred had earnings of $5.5 million on $31.3 million of revenues

for the year ended December 31, 2001. Correspondingly, its pretax income increased 13% to $7.9 million for the year ended December 31, 2001 compared to the same period in 2000. The increase in income for 2001 was primarily the result of increased premium revenues and investment income, and lower claims activity and interest expense.

Global Preferred Holdings, Inc., whose executive offices are located in Duluth, Georgia, is the parent of Global Preferred Re Limited, a Bermuda life reinsurer. As of December 31, 2001, Global Preferred Re had approximately $9.1 billion of life reinsurance in force, and more than $266 million of reinsured annuity contract benefits in force, and reinsured over 335,000 life insurance policies, riders and annuity contracts.

"We can clearly look upon 2001 as a year that brought about significant changes for all of us, especially as we define ourselves for the future," said Chief Executive Officer and President Edward F. McKernan. "We are pleased with the relationships we have fostered during 2001 and, in particular, with World Financial Group."

World Financial Group is an independent marketing organization that is a direct subsidiary of AEGON Asset Management Services, Inc. The variable universal life and annuity policies Global Preferred reinsures, which are underwritten and issued by various ceding life insurance companies, are the result of the sales and marketing efforts of agents associated with World Financial Group.

The Company reported total revenues of $7.9 million for the quarter ended December 31, 2001 and $31.3 million for the year ended December 31, 2001. This reflects a decrease of 3% for the quarter and an increase of 4% for the year, respectively, from the comparable periods in 2000. The increase in revenues for the year was primarily attributable to growth in the reinsurance premiums on Global Preferred Re's variable universal life reinsurance business. Net income for the quarter was $1.1 million, or $0.28 per diluted share. Net income for the year rose to $5.5 million, or $1.32 per diluted share.

               Selected Consolidated Balance Sheet Data

(in thousands)                        December 31,        December 31,
                                          2001                2000
                                      -----------         -----------
Assets
 Cash and invested assets              $ 20,277            $ 10,172
 Deferred acquisition costs              42,800              42,752
 Other assets                             4,776               3,693
                                       --------            --------
 Total Assets                          $ 67,853            $ 56,617
                                       ========            ========

Liabilities and Stockholders' Equity
 Liabilities                           $ 25,884            $ 20,028
 Stockholders' Equity                    41,969              36,589
                                       --------            --------
 Total Liabilities and Stockholders'
  Equity                               $ 67,853            $ 56,617
                                       ========            ========


              Summary of Consolidated Statement of Income

                                        Quarter Ended    Year Ended
(in thousands except per share amounts)  December 31     December 31
                                        2001    2000     2001    2000
                                        ----    ----     ----    ----
Revenues:
 Reinsurance revenues                  $7,642  $7,987  $30,478 $29,513
 Investment income and realized gains     264     159      856     530
                                       ------  ------  ------- -------

                                        7,906   8,146   31,334  30,043
                                       ------  ------  ------- -------


Benefits and expenses:
 Benefits, claims and settlements       2,277   2,621    8,704   9,612
 Reinsurance premium allowances, net    2,156   2,030    8,501   7,539
 Amortization of DAC                    1,325     895    3,945   4,017
 Operating expenses                       597     283    1,952   1,256
 Interest expense                          95     108      378     665
                                       ------  ------  ------- -------

                                        6,450   5,937   23,480  23,089
                                       ------  ------  ------- -------


Income before income taxes              1,456   2,209    7,854   6,954
Income tax expense                       (341)   (823)  (2,392) (1,821)
                                       ------  ------  ------- -------

Net income                             $1,115  $1,386  $ 5,462 $ 5,133
Preferred dividends                        58      82      267     155
                                       ------  ------  ------- -------

Net income available to common
 stockholders                          $1,057  $1,304  $ 5,195 $ 4,978
                                       ======  ======  ======= =======

Basic earnings per share               $ 0.28  $ 0.35  $  1.39 $  1.33
                                       ======  ======  ======= =======

Diluted earnings per share             $ 0.27  $ 0.33  $  1.32 $  1.30
                                       ======  ======  ======= =======

Weighted-average common shares
 outstanding                            3,743   3,743    3,743   3,743

Weighted-average diluted common shares  4,142   4,142    4,142   3,944