Scottish Re Group ( SCT) 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) and Bear Stearns ( BSC) 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) 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) slipped after the Newtown Square, Pa.-based property management company filed its delayed financial results for 2005.