Fidelity and Guaranty Life Insurance Company

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Settlement talks delay $40 m Annuity & Life Re/Transamerica arbitration

An arbitration hearing scheduled for April regarding a $40 million damages claim against Bermuda-based Annuity and Life Re (Holdings) Ltd. by Transamerica Occidental Life Insurance Company has been called off pending settlement negotiations.Details are contained in a note to the financials headlined “Contingencies” that appears in Annuity & Life Re's 2006 financials, which were released on March 21, 2007.