Bermuda-based Alea Group Holdings Ltd. reported strong first half results for 2004 with the reinsurer’s operating profits up 74 percent to $61.4 Million.
Other earnings highlights included:
— Underwriting profit before allocated investment return increased 108 percent to $23.1 million, compared to $11.1 million for the first 6 months of 2003,”reflecting growth in earned premiums.”
— Net unearned premium reserve increased 34 Percent to $872 million over $651million in 2003, “representing tangible future income.”
— Profit before tax of $24.2 million, compared to $41.4 million in 1st half 2003. The figure includes unrealized investment losses of $29.2 million, however. In first half 2003 losses were $1.0 million.
— Gross investment income up 32 percent to $36.2 million, compared to $27.4 million in 1st half 2003.
— Combined ratio of 95.7 percent, down from 97.1 percent for the first six months of 2003, which the company said demonstrated “sound underwriting discipline and expense control.”
— Fully diluted operating EPS were 26 cents, the same as last year’s figure; fully diluted EPS were 9 cents, compared to 32 cents in the same period of 2003.
— First interim dividend of 3 cents per share
— 99 percent of $1.859 billion invested assets (up from $1.335 billion in 2003) are rated “AA” or higher.
— Net asset value of $4.20 per share (£2.34)
— Annualized operating return on equity of 12.7 percent
Chief Executive Mark Ricciardelli commented: “Alea has delivered what it said it would. We have grown operating profits significantly while maintaining underwriting discipline and managing costs effectively. There is substantial written premium captured at attractive terms under a rigorous control system to be earned in the second half of this year and beyond.”
“We have built a strong platform with a strategy focused on low-risk, small to mid-market insurance and reinsurance clients in North America, Europe and the United Kingdom. We continue to see opportunities to generate sustainable returns in our chosen markets.”
In earlier news Alea announced that Edward B. Jobe, a former top executive with American Re, has been appointed as an independent Non-Executive Director. He will also serve on the Board’s Audit Committee.
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