Alea Updates Status of Capital Raising, Trading Conditions; IFRS Statement

Bermuda-based Alea Group Holdings, a leading specialty insurer and reinsurer, has issued a statement providing an update on its capital raising initiatives and trading conditions for the first half of 2005.

The Group has been under some pressure over its ratings. Standard & Poor’s changed its outlook on its “A-” rating from stable to negative in March (See IJ Website March 17). On June 10 A.M. Best placed its “A-” (Excellent) ratings under review with negative implications.

CEO Mark L. Ricciardelli commented: “The market environment and our current book of business is performing in-line with our AGM update of June 2 and our expectations. We are working on a definitive proposal to address AM Best’s previously announced concerns and continue to work actively with our advisors.”

In a separate bulletin the company indicated that “the impact of International Financial Reporting Standards (“IFRS”) on its net assets for the 12 months ended 31 December 2004 is minimal.”