Monday's Financial Winners & Losers

Scottish Re Group(SCT Quote) plummeted nearly 75% Monday after the Bermuda-based reinsurance company announced that CEO Scott E. Willkomm had resigned and that the firm expects to post a loss of about $130 million for the second quarter. The insurer also eliminated its quarterly dividend and hired two Wall Street firms to explore a possible sale.

The insurer named Paul Goldean, executive vice president and general counsel, as interim CEO. Scottish Re also hired Goldman Sachs(GS Quote) and Bear Stearns(BSC Quote) to assist with "evaluating strategic alternatives.'' Richard Sbaschnig, an analyst at Oppenheimer & Co, in a research note, expressed doubt about Scottish Re's ability to continue as a going concern, in downgrading the stock to a sell from a buy. Shares dropped $11.80, or 73.75%, to $4.20 recently.

CNA Surety Corp.(SUR Quote) gained after the Chicago-based insurer swung to a second-quarter profit. The company earned $19.5 million, or 45 cents a share, compared with a loss of $11.9 million, or 28 cents a share, a year ago. The Thomson Financial consensus estimate had the insurer earning 40 cents a share.

The turnaround at the firm stems from a combination of expense cuts and higher premium revenue. The year-ago quarter also included a $26 million after-tax charge for setting up a reserve to cover losses related to a large national contractor.

In the quarter, the firm cut expenses by 30% to $79.5 million. Gross premiums increased 12% to $119.3 million. Contract surety gross premiums increased 17.8% to $78.8 million, primarily because of increased demand as a result of the strong construction economy and growth in contract size due to cost inflation within the construction industry. Shares fell 82 cents, or 4.71%, to $18.22 in recent trading.

GMH Communities Trust(GCT Quote) slipped after the Newtown Square, Pa.-based property management company filed its delayed financial results for 2005.