Document:

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                                                                    Exhibit 10.3

                              DIRECTOR'S VOLUNTARY
                           DEFERRED COMPENSATION PLAN

Annuity & Life Re (Holdings), Ltd., (the "Company") hereby establishes the
Annuity & Life Re (Holdings), Ltd. Director's Voluntary Deferred Compensation
Plan (the "Plan") for its Non-Employee Directors. The purpose of the Plan is to
provide Company's Directors an opportunity to elect to defer the receipt of
compensation in order to provide termination of service, retirement and related
benefits. Where applicable, such benefits would be taxable pursuant to Section
451 of the United States Internal Revenue Code of 1986, as amended (the "Code").
The Plan is intended to be an unfunded deferred compensation plan (as defined in
the United States Employee Retirement Income Security act of 1974). Accordingly,
the following Plan is adopted.

                            ARTICLE I -- DEFINITIONS

1.1  ACCOUNT means the balance credited to a Participant's or Beneficiary's Plan
Account, including contribution credits and deemed income, gains, and losses (to
the extent realized as determined by the Company, in its discretion) credited
thereto. A Participant's or Beneficiary's Account shall be determined as of the
date of reference.

1.2  BENEFICIARY means any person or persons so designated in accordance with
the provisions of Article VII.

1.3  CODE means the Internal Revenue Code of 1986 and the regulations
thereunder, as amended from time to time.

1.4  COMPENSATION means the total current cash remuneration paid by the Company
to an Eligible Non-Employee Director with respect to his or her service for the
Company (as determined by the Company).

1.5  DESIGNATION DATE means the date or dates as of which a designation of
deemed investment directions by an individual pursuant to Sections 4.1 and 4.4,
or any change in a prior designation of deemed investment directions by an
individual pursuant to Section 4.1 and 4.4, shall become effective. The
Designation Dates in any Plan Year shall be designated by the Company.

1.6  EFFECTIVE DATE means the effective date of the Plan, which will be July
27, 2000.

1.7  ELIGIBLE NON-EMPLOYEE DIRECTOR means, for any Plan Year (or applicable
portion thereof), a person serving the Company's Board of Directors and who is
designated by the Company to be an Eligible Non-Employee Director under the
Plan.
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1.8       COMPANY means Annuity & Life Re (Holdings), Ltd., and its successors
and assigns otherwise herein provided, and any other corporation or business
organization which, with the consent of Annuity & Life Re (Holdings), Ltd., or
its successors or assigns, assumes the Company's obligations hereunder, or any
other corporation or business organization which agrees, with the consent of
Annuity & Life (Holdings), Ltd., to become a party to the Plan.

1.9       ENTRY DATE with respect to an individual means the first day following
the date on which the individual first becomes an Eligible Non-Employee
Director.

1.10      PARTICIPANT means any person so designated in accordance with the
provisions of Article II.

1.11      PARTICIPANT ENROLLMENT AND ELECTION FORM means the form on which a
Participant elects to defer Compensation hereunder and on which the Participant
makes certain other designations as required thereon.

1.12      PLAN means this Annuity & Life Re (Holdings), Ltd. Director's
Voluntary Deferred Compensation Plan, as amended from time to time.

1.13      PLAN YEAR means the twelve (12) month period ending on the December
31st of each year during which the Plan is in effect.

1.14      VALUATION DATE means the December 31st of each Plan Year and any other
date that the Company, in its sole discretion, designates as a Valuation Date.

                  ARTICLE II -- ELIGIBILITY AND PARTICIPATION

2.1       REQUIREMENTS. Every Eligible Non-Employee Director on the Effective
Date shall be eligible to become a Participant on the Effective Date. Every
other Eligible Non-Employee Director shall be eligible to become a Participant
on the first Entry date occurring on or after the date on which he or she
becomes an Eligible Non-Employee Director. No individual shall become a
Participant, however, if he or she is not an Eligible Non-Employee Director on
the date his or her participation is to begin.

Participation in the Plan is voluntary. In order to participate, an otherwise
Eligible Non-Employee Director must make written application in such manner as
may be required by Section 3.1 and by the Company and must agree to make
compensation Deferrals as provided in Article III.

                    ARTICLE III -- CONTRIBUTIONS AND CREDITS

3.1       PARTICIPANT COMPENSATION DEFERRALS AND EMPLOYER CONTRIBUTION CREDITS.
In accordance with rules established by the Company, a Participant may elect to
defer compensation which is due to be earned and which would otherwise be paid
to the Participant, in a lump sum or in any fixed periodic dollar amounts
designated by the Participant. Amounts so deferred will be considered a
Participant's "Compensation Deferrals".

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Compensation Deferrals shall be made through an election by the Participant to
defer the payment of fees not yet payable to him or her at the time of the
election. Ordinarily, a Participant shall be permitted to make a deferral
election each March 1st and September 1st and on such other dates as may be
permitted by the Company. Such election will be effective thirty (30) days
after the receipt by the Employer of written notice of the election. Once made,
a Compensation Deferral deduction election shall continue in force until the
end of the calendar year. The Participant may change the deduction election
effective on the first day of the subsequent calendar year by completing an
election form provided by the Company. Compensation Deferrals shall be credited
to the Account of the deferring Participant.

There shall be established and maintained by the Company a separate Plan Account
in the name of each Participant, which shall at all times be one hundred percent
(100%) vested in the Participant, and to which shall be credited or debited: (a)
amounts equal to the Participant's Compensation Deferrals, and (b) amounts equal
to any deemed income, gains, or losses, based upon deemed fair market value of
the Account's deemed assets, as determined by the Company, in its discretion)
attributable or allocable to (a) and (b). The Company shall have the discretion
to allocate such deemed income, gains, or losses among Plan Accounts pursuant to
such allocation rules as the Company deems to be reasonable and administratively
practicable.

                   ARTICLE IV -- INVESTMENT OF CONTRIBUTIONS

4.1  STATUS OF INVESTMENTS. All investments actually made by the Company
pursuant to this Plan will be deemed made solely for the purpose of aiding the
Company in measuring and meeting its obligations under this Plan. This Plan
places no obligation upon the Company to invest any portion of the amount in
the Account, to invest or continue to invest in any specific asset, to
liquidate any particular investment, or to apply in any specific manner the
proceeds from the sale, liquidation, or maturity of any particular investment.
Nothing stated herein shall cause such investments to be treated as anything
but the general assets of the Company, nor will anything stated herein cause
such investments to represent the vested, secured or preferred interest of the
Participant or his or her Beneficiaries designated under this Plan.

Each Participant hereunder, as a condition to his or her participation
hereunder, agrees to hold harmless the Company and its agents and
representatives from any losses or damages of any kind relating to the deemed
investment of the Participant's Account hereunder.

                    ARTICLE V -- ENTITLEMENT TO BENEFITS

5.1  TERMINATION OF SERVICE. If a Participant terminates service with the
Company for any reason, the Participant's Plan Account at the date of
termination shall be valued and payable according to the provisions of Article
VI.

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5.2 HARDSHIP DISTRIBUTIONS. In the event of financial hardship of the
Participant, as hereinafter defined, the Participant may apply to the Company
for the distribution of all or any part of his or her Account. The Company shall
consider the circumstances of each such case, and the best interests of the
Participant and his or her family, and shall have the right, in its sole
discretion, if applicable, to allow such distributions, or, if applicable, to
direct a distribution of part of the amount requested, or to refuse to allow any
distribution. Upon a finding of financial hardship, the Company shall make the
appropriate distribution to the Participant in respect of the Participant's
Account. In no event shall the aggregate amount of the distribution exceed
either the full value of the Participant's Account or the amount determined by
the Company to be necessary to alleviate the Participant's financial hardship
(which financial hardship may be considered to include any taxes due because of
the distribution occurring because of this Section), and which is not reasonably
available from other resources of the Participant. For purposes of this Section,
the value of the Participant's Account shall be determined as of the date of the
distribution. "Financial Hardship" means (a) a severe financial hardship to the
Participant resulting from a sudden and unexpected illness or accident of the
Participant or of a dependent, (b) loss of the Participant's property due to
casualty, or (c) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant, each as
determined to exist by the Company.

                      ARTICLE VI--DISTRIBUTION OF BENEFITS

6.1 AMOUNT. A Participant (or his or her Beneficiary) shall become entitled to
receive a distribution in an aggregate amount equal to the Participant's
Account, which amount, depending on the performance of the deemed investments,
may be less than, equal to, or greater than the aggregate amount of the
Participant's Compensation Deferrals. Any payment due hereunder from the Trust
will be paid by the Company from its general assets.

6.2 DATE CERTAIN. A Participant shall be permitted to elect to defer
compensation under this Plan to a Date Certain at least five (5) years
subsequent to the Participant's enrollment date. However, in no event shall the
Participant be allowed to defer compensation beyond his or her (seventieth) 70th
birthday. Participants deferring compensation to a Date Certain shall become
entitled to receive, on or about the earlier of the date of the Participant's
termination of service with the Company, or upon the Date Certain elected by the
Participant, an aggregate amount determined pursuant to Section 6.1 above.

6.3 METHOD OF PAYMENT.

   (a) Cash Payments. All payments under the Plan shall be made in cash.

   (b) Timing and Manner of Payment. In the case of distributions to a
       Participant or his or her Beneficiary by virtue of an entitlement
       pursuant to Section 5.2, an aggregate amount equal to the Participant's
       Account will be paid by the Company, as provided by Section 6.1, in a
       lump sum. In the event a Participant becomes

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          entitled to benefits under Section 5.1, an aggregate amount equal to
          the Participant's Account will be paid by the Company, as provided by
          Section 6.1, in a lump sum. In the case of distributions to a
          Participant or his or her Beneficiary by virtue of an entitlement
          pursuant to Section 6.2, an aggregate amount equal to the
          Participant's Account will be paid by the Company as provided by
          Section 6.1, in a lump sum on or about the Date Certain elected by the
          Participant, or his or her termination date, if that date should be
          earlier, subject to Section 6.3(c) below.

     (c)  Provided that no distribution shall commence sooner than the first day
          of the calendar year after the earlier of (i) the date the Participant
          elects the manner of payment by filing written notice with the
          Company, or (ii) the date of the Participant's termination of service
          with the Company.

6.4  DEATH BENEFITS.  If a Participant dies before terminating his or her
service with the Company and before the commencement of payments to the
Participant hereunder, the entire value of the Participant's Account shall be
paid, as provided in Section 6.3, to the person or persons designated in
accordance with Section 7.1.

Upon the death of a Participant after payments hereunder have begun but before
he or she has received all payments to which he or she is entitled under the
Plan, the remaining benefit payments shall be paid to the person or persons
designated in accordance with Section 7.1, in a lump sum.

                 ARTICLE VII - BENEFICIARIES; PARTICIPANT DATA

7.1. DESIGNATION OF BENEFICIARIES. Each Participant from time to time may
designate any person or persons (who may be named contingently or successively)
to receive such benefits as may be payable under the Plan upon or after the
Participant's death, and such designation may be changed from time to time by
the Participant by filing a new designation. Each designation will revoke all
prior designations by the same Participant, shall be in a form prescribed by
the Company, and will be effective only when filed in writing with the Company
during the Participant's lifetime.

In the absence of a valid Beneficiary designation, or if, at the time any
benefit payment is due to a Beneficiary, there is no living Beneficiary validly
named by the Participant, the Company shall pay any such benefit payment to the
Participant's spouse, if then living, but otherwise to the Participant's then
living descendants, if any, per stirpes, but, if none, to the Participant's
estate. In determining the existence or identity of anyone entitled to a
benefit payment, the Company may rely conclusively upon information supplied by
the Participant's personal representative, executor, or administrator. If a
question arises as to the existence or identity of anyone entitled to receive a
benefit payment as aforesaid, or if a dispute arises with respect to any such
payment, then, notwithstanding the foregoing, the Company, in its sole
discretion, may distribute such payment to the

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Participant's estate without liability for any tax or other consequences which
might flow therefrom, or may take such other action as the Company deems to be
appropriate.

7.2 INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO
LOCATE PARTICIPANTS OR BENEFICIARIES. Any communication, statement, or notice
addressed to a Participant or to a Beneficiary at his or her last post office
address as shown on the Company's records shall be binding on the Participant or
Beneficiary for all purposes of the Plan. The Company shall not be obliged to
search for any Participant or Beneficiary beyond the sending of a registered
letter to such last known address. If the Company notifies any Participant or
Beneficiary that he or she is entitled to an amount under the Plan and the
Participant or Beneficiary fails to claim such amount or make his or her
location known to the Company within three (3) years thereafter, then, except as
otherwise required by law, if the location of one or more of the next of kin of
the Participant is known to the Company, the Company may direct distribution of
such amount to any one or more or all of such next of kin, and in such
proportions as the Company determines. If the location of none of the foregoing
persons can be determined, the Company shall have the right to direct that the
amount payable shall be deemed to be a forfeiture, except that the dollar amount
of the forfeiture, unadjusted for deemed gains or losses in the interim, shall
be paid by the Company if a claim for the benefit subsequently is made by the
Participant or the Beneficiary to whom it was payable. If a benefit payable to
an unlocated Participant or Beneficiary is subject to escheat pursuant to
applicable law, the Company shall not be liable to any person for any payment
made in accordance with such law.

                        ARTICLE VIII -- ADMINISTRATION

8.1 ADMINISTRATIVE AUTHORITY. Except as otherwise specifically provided herein,
the Company shall have the sole responsibility for and the sole control of the
operation and administration of the Plan, and shall have the power and authority
to take all action and to make all decisions and interpretations which may be
necessary or appropriate in order to administer and operate the Plan, including,
without limiting the generality of the foregoing, the power, duty, and
responsibility to:

     (a) Resolve and determine all disputes or questions arising under the
         Plan, including the power to determine the rights of Eligible
         Non-Employee Directors, Participants, and Beneficiaries, and their
         respective benefits, and to remedy any ambiguities, inconsistencies, or
         omissions in the Plan.

     (b) Adopt such rules of procedure and regulations as in its opinion may be
         necessary for the proper and efficient administration of the Plan and
         as are consistent with the Plan.

     (c) Implement the Plan in accordance with its terms and the rules and
         regulations adopted as above.

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          (d)  Make determinations with respect to the eligibility of any
               Eligible Non-Employee Director as a Participant and make
               determinations concerning the crediting and distribution of Plan
               Accounts.

          (e)  Appoint any persons or firms, or otherwise act to secure
               specialized advice or assistance, as it deems necessary or
               desirable in connection with the administration and operation of
               the Plan, and the Company shall be entitled to rely conclusively
               upon, and shall be fully protected in any action or omission
               taken by it in good faith reliance upon, the advice or opinion of
               such firms or persons. The Company shall have the power and
               authority to delegate from time to time by written instrument all
               or any part of its duties, powers, or responsibilities under the
               Plan, both ministerial and discretionary, as it deems
               appropriate, to any person or committee, and in the same manner
               to revoke any such delegation of duties, powers, or
               responsibilities. Any action of such person or committee in the
               exercise of such delegated duties, powers, or responsibilities
               shall have the same force and effect for all purposes hereunder
               as if such action had been taken by the Company. Further, the
               Company may authorize one or more persons to execute any
               certificate or document on behalf of the Company, in which event
               any person notified by the Company of such authorization shall be
               entitled to accept and conclusively rely upon any such
               certificate or document executed by such person as representing
               action by the Company until such third person shall have been
               notified of the revocation of such authority.

8.2  UNIFORMITY OF DISCRETIONARY ACTS.  Whenever in the administration or
operation of the Plan discretionary actions by the Company are required or
permitted, such actions shall be consistently and uniformly applied to all
persons similarly situated, and no such action shall be taken which shall
discriminate in favor of any particular person or group of persons.

8.3  LITIGATION.  Except as may be otherwise required by law, in any action or
judicial proceeding affecting the Plan, no Participant or Beneficiary shall be
entitled to any notice or service of process, and any final judgment entered in
such action shall be binding on all persons interested in, or claiming under,
the Plan.

8.4  PAYMENT OF ADMINISTRATION EXPENSES.  All expenses incurred in the
administration and operation of the Plan shall be paid by the Company.

                             ARTICLE IX - AMENDMENT

9.1  RIGHT TO AMEND.  The Company, by written instrument executed by the
Company, shall have the right to amend the Plan, at any time and with respect to
any provisions hereof, and all parties hereto or claiming any interest hereunder
shall be bound by such amendment; provided, however, that no such amendment

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shall deprive a Participant or a Beneficiary of a right accrued hereunder prior
to the date of the amendment.

9.2 AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding the
provisions of Section 9.1, the Plan may be amended by the Company at any time,
retroactively if required, if found necessary, in the opinion of the Company, in
order to ensure that the Plan is characterized as an unfunded deferred
compensation plan established and maintained for Non-Employee Directors of the
Company in accordance with all applicable laws and regulations, including the
Code and the United States Employee Retirement Income Security Act of 1974. No
such amendment shall be considered prejudicial to any interest of a Participant
or a Beneficiary hereunder.

                            ARTICLE X -- TERMINATION

10.1 COMPANY'S RIGHT TO TERMINATE OR SUSPEND PLAN. The Company reserves the
right, at any time, to terminate the Plan and/or its obligation to make further
credits to Plan accounts. Company also reserves the right, at any time, to
suspend the operation of the Plan for a fixed or indeterminate period of time.

10.2  AUTOMATIC TERMINATION OF PLAN. The Plan automatically shall terminate upon
the dissolution of the Company, upon change of control, or upon its merger into
or consolidation with any other corporation or business organization if there is
a failure by the surviving corporation or business organization to adopt
specifically and agree to continue the Plan.

10.2a CHANGE OF CONTROL. Definition of Change in Control. For purposes of this
Section a "Change of Control" of the Company shall be deemed to have occurred
if:

      (1) Any person, including a group of persons acting in concert, becomes
          the beneficial owner of shares of the Company having 50% or more of
          the total number of votes that may be cast for the election of
          directors of the Company;

      (2) There occurs any cash tender or exchange offer for shares of the
          Company, merger or other business combination, or any combination of
          the foregoing transactions, and as a result of or in connection with
          any such event, persons who were directors of the Company before the
          event shall cease to constitute a majority of the board of directors
          of the Company or any successor to the Company; or

      (3) The sale, conveyance or other disposition (other than by way of merger
          or consolidation), in one or a series of related transactions, of all
          or substantially all of the assets of the Company.

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Notwithstanding the foregoing, a Change of Control shall not be deemed to have
occurred by reason of a change in beneficial ownership occurring in connection
with the initial or subsequent public offerings of the Common Shares.

10.3 SUSPENSION OF DEFERRALS. In the event of a suspension of the Plan, the
Company shall continue all aspects of the Plan, other than Compensation
Deferrals and Company contribution credits under Section 3.1, during the period
of the suspension, in which event payments hereunder will continue to be made
during the period of the suspension in accordance with articles V and VI.

10.4 ALLOCATION AND DISTRIBUTION. This Section shall become operative upon a
complete termination of the Plan. The provisions of this Section also shall
become operative in the event of a partial termination of the Plan, as
determined by the Company, but only with respect to that portion of the Plan
attributable to the Participants to whom the partial termination is applicable.
Upon the effective date of any such event, notwithstanding any other provisions
of the Plan, no persons who were not theretofore Participants shall be eligible
to become Participants, the value of the interest of all Participants and
Beneficiaries shall be determined and, if applicable, paying Plan benefits,
paid to them as soon as is practicable after such termination.

10.5 SUCCESSOR TO COMPANY. Any corporation or other business organization which
is a successor to the Company by reason of a consolidation or merger with the
Company shall have the right to become a party to the Plan by adopting the same
by resolution of the entity's board of directors or other appropriate governing
body. If, within ninety (90) days from the effective date of such
consolidation, merger, or sale of assets, such new entity does not become a
party hereto, as above provided, the Plan automatically shall be terminated,
and the provisions of Section 10.4 shall become operative.

                          ARTICLE XI -- MISCELLANEOUS

11.1 LIMITATIONS ON LIABILITY OF COMPANY. Neither the establishment of the Plan
nor any modification thereof, nor the creation of any account under the Plan,
nor the payment of any benefits under the Plan shall be construed as giving to
any Participant or other person any legal or equitable right against the
Company, or any officer or employee thereof except as provided by law or by any
Plan provision. The Company does not in any way guarantee any Participant's
Account from loss or depreciation, whether caused by poor investment performance
of a deemed investment or the inability to realize upon an investment due to an
insolvency affecting an investment vehicle or any other reason. In no event
shall the Company, or any successor, employee, officer, director, or stockholder
of the Company, be liable to any person on account of any claim arising by
reason of the provisions of the Plan or of any instrument or instruments
implementing its provisions, or for the failure of any Participant, Beneficiary,
or other person to be entitled to any particular tax consequences with respect
to the Plan, or any credit or distribution hereunder.

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11.2  CONSTRUCTION.  If any provision of the Plan is held to be illegal or
void, such illegality or invalidity shall not affect the remaining provisions
of the Plan, but shall be fully severable, and the Plan shall be construed and
enforced as if said illegal or invalid provision had never been inserted
herein. For all purposes of the Plan, where the context admits, the singular
shall include the plural, and the plural shall include the singular. Headings
of Articles and Sections herein are inserted only for convenience of reference
and are not to be considered in the construction of the Plan. Participation
under the Plan will not give any Participant the right to be retained in the
service of the Company, nor any right or claim to any benefit under the Plan,
unless such right or claim has specifically accrued hereunder.

The Plan is intended to be and at all times shall be interpreted and
administered so as to qualify as an unfunded deferred compensation plan, and no
provision of the Plan shall be interpreted so as to give any individual any
right in any assets of the Company which right is greater than the rights of a
general unsecured creditor of the Company.

11.3  SPENDTHRIFT PROVISION.  No amount payable to a Participant or a
Beneficiary under the Plan will, except as otherwise specifically provided by
law, be subject in any manner to anticipation, alienation, attachment,
garnishment, sale, transfer, assignment (either at law or in equity), levy
execution, pledge, encumbrance, charge, or any other legal or equitable
process, and any attempt to do so will be void; nor will any benefit be in any
manner liable for or subject to the debts, contracts, liabilities, engagements,
or torts of the person entitled thereto.

In the event that any Participant's or Beneficiary's benefits hereunder are
garnished or attached by order of any court, the Company may bring an action or
a declaratory judgment in a court of competent jurisdiction to determine the
proper recipient of the benefits to be paid under the Plan. During the pendency
of said action, any benefits that become payable shall be held as credits to
the Participant's or Beneficiary's Account or, if the Company prefers, paid
into the court as they become payable, to be distributed by the court to the
recipient as the court deems proper at the close of said action.

IN WITNESS WHEREOF, the Company has caused the Plan to be executed and its seal
to be affixed hereto, effective as of the 27th day of July, 2000.

                                           Annuity & Life Re (Holdings), Ltd.
                                           -------------------------------------

                                           By /s/ Lawrence S. Doyle
                                           -------------------------------------
                                           President and Chief Executive Officer

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                DIRECTOR'S VOLUNTARY DEFERRED COMPENSATION PLAN

                            BENEFICIARY DESIGNATION

In the event of my death prior to my payment date, I hereby designate the
following beneficiaries for all sums accumulated under this plan:

NAME/RELATIONSHIP                            ADDRESS

Primary________________________              ______________________________

                                             ______________________________

Secondary______________________              ______________________________

                                             ______________________________

DEFERRED SURVIVAL: If any beneficiary designated shall survive me but shall die
before the _____ day after my death (exclusive of the date of death), payments
shall be made in the same manner as if the beneficiary has predeceased me.

CHANGE OF BENEFICIARY: This beneficiary designation cancels any designation of
beneficiaries previously made and I expressly reserve the right, without the
consent of any beneficiary, to revoke this designation and to change the
beneficiary at any time by so notifying the Company in writing at its Home
Office.

PROTECTION OF PROCEEDS: No person entitled to any part of the proceeds or any
installments of interest shall be permitted to commute, encumber, alienate or
assign the same or any part thereof, and no payments of interest or principal
shall be in any way subject to said person's debts, contracts or engagements,
nor to any judicial processes to levy upon or attach the same for payment.

Executed this ______ day of ______________, ______.

_______________________________          _______________________________
           Witness                                Participant

Original of this Beneficiary designation filed with Annuity & Life Re
(Holdings), Ltd. of Hamilton, Bermuda on _________________, _______.

                                         ________________________________
                                               Corporate Secretary

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                DIRECTOR'S VOLUNTARY DEFERRED COMPENSATION PLAN

                            ELECTION TO PARTICIPATE

Name________________________________         D.O.B._____________________________

Address:____________________________         S.S.#______________________________

____________________________________

A. TOTAL DEFERRAL

   The amount of each service fee (retainer and meeting fees) to be deferred is
____%. (100%, 75%, 50%, 25%)

B. OPTIONAL PAYMENT DATE

   All deferrals are to be paid at termination of service, unless an optional
   date is elected in accordance with Section 6.2 of the Agreement.

   Date Certain: __________ 1st, _________.
                   Month           Year

   I UNDERSTAND:

   That the Optional Payment Date cannot be changed once selected; that I may
   change the level of deferral under this Agreement by providing at least 30
   days' notice; and that participation will be governed by the Agreement.

Participant:________________________         Dated:_____________________________

Acknowledgment:_____________________         Dated:_____________________________

                                       12<PAGE>
                                                                    EXHIBIT 10.4

                                LETTER OF INTENT
                                    between
                        ANNUITY AND LIFE REASSURANCE LTD
                                      and
                                  XL LIFE LTD

CEDING COMPANY

     Annuity and Life Reassurance Ltd. ("ALRe")

REINSURER

     XL Life Ltd ("XL")

REINSURANCE

     Catastrophic Excess of Loss Cover

RISK REINSURED

     ALRe's Incurred death benefit claims resulting from a single event during
     the Coverage Period in which ALRe has incurred more than Five (5) deaths
     from the Eligible Business. Multiple policies on any one life shall be
     treated as one death. A Covered Event shall be limited to accidents that
     occur during the Coverage Period that cause the deaths within 24 hours of
     the time of the accident to at least five lives that are reinsured by ALRe.
     Only the first occurrence of a Covered Event during the Coverage Period
     shall be reinsured by XL.

ELIGIBLE BUSINESS

     Life Insurance individually underwritten by U.S. and Canadian Insurance
     Companies reinsured by ALRe. Any group-related business, such as Group
     Insurance and Corporate Owned Life Insurance, is excluded.

COVERAGE PERIOD

     January 1, 2002 through December 31, 2002

PREMIUM

     The greater of $0.008 per $1000 of total risk reinsured of the Eligible
     Business as measured at the beginning of the Coverage Period, or $1
     million. The premium is payable to the XL 60 days after the start of the
     Coverage Period.

EXCLUSIONS

     -  Deaths that occur more than 24 hours after a Covered Event are excluded.

     -  Covered Event shall not include any act of terrorism, military
        terrorism, or any act of war, declared or undeclared.

<PAGE>
EXCESS OF LOSS PAYMENT

     The Excess of Loss Payment from XL to ALRe under this Contract shall be the
     average of the eligible incurred claim payments per death, not to exceed
     $25,000 per death, for each death in excess of 5 deaths, up to a maximum of
     10 times the Premium payable under this Contract. The Excess of Loss
     Payment is due 90 days after ALRe has reported to XL eligible claims under
     this Contract from policies reinsured by ALRe.

RENEWAL

     1.   ALRe and XL may mutually agree to renew this contract on a yearly
          basis on the existing terms. At any time, ALRe and XL Life may
          mutually agree to terminate this contract on mutually agreeable terms.

     2.   In the event that incurred losses under this Contract exceed paid
          premium under this Contract, XL has the right to mandate renewal of
          this contract for 10 successive years on the existing terms.

TERMINATION

     At any time, ALRe and XL may mutually agree to terminate this contract on
     mutually agreeable terms.

CURRENCY
     U.S. Dollars

OTHER PROVISIONS (to include, but not be limited to the following:)
     Definitions
     Access to records
     Arbitration (Bermuda 1993 Act)
     Insolvency
     Offset
     ALRe to warrant accuracy of Reserves and Incurred Losses
     Governing Law (Bermuda)
     30 Day due diligence period for final approval and final wording

WORDING

To be agreed.

CONDITION PRECEDENT

This transaction must be approved by ALRe's Board of Directors.
<PAGE>

Accepted for Annuity & Life Reassurance, Ltd.

Signature:  /s/ Robert Reale
            --------------------------------------

Name:       ROBERT REALE
            --------------------------------------

Title:      SVP & Chief Underwriter
            --------------------------------------

Date:       Feb. 28, 2002
            --------------------------------------

Accepted for XL Life Ltd

Signature:  /s/ Paul Giordano
            --------------------------------------

Name:       Paul Giordano
            --------------------------------------

Title:      Executive Vice President and Secretary
            --------------------------------------

Date:       March 13, 2002
            --------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]