Alea Group Holdings (Bermuda) has released its financial results for 2005.
The company indicated that it entered into run-off in the fourth quarter following downgrades in its credit and financial strength ratings from the A- level, which led to difficulties attracting new and renewal business.
Alea's gross written premiums for 2005 were $997.5m, compared with $1,582.6m the previous year. The company posted a pre-tax loss of $152.1m, compared with a profit of $12.1m in 2004.
Alea's after-tax loss on operating activities for 2005 was $178.9m. The firm lost $108.5m as a result of storm activity.
The company's chairman, John Reeve, said: “In 2006 and beyond the group will pursue an aggressive run-off strategy.”
However, Reeve added: “There can be no certainty as to the timing or amounts of future distributions to shareholders. Any future distributions will be subject to execution of the commutation strategy in line with the group's plan, appropriate regulatory approvals being obtained to fund intra-group distributions, applicable legal restrictions, repayment of the Group's $150 million term loan and $50 million revolver and the retention of adequate capital to meet other obligations.”
