Claims in line with expectations
Alea, the Bermuda-based insurer placed into run-off two years ago, has said its insurance and reinsurance claims are in line with expectations.
In its Interim Management Statement for the period from 1 January 2008 to 19 May, the company said it was continuing to seek ways to scale its operating costs in line with its reducing liabilities and total assets.
In 2005, Alea posted losses of $179m stemming from Hurricane Katrina. In 2006, that figure fell to $0.8m, with net premiums falling by 75 per cent to $216m.
The Group prepaid its outstanding bank loans on 14 January.
In March, it announced its liabilities had fallen a fifth from $1.942bn to $1.55bn. Kirk Lusk, group chief financial officer and chief operating officer, also resigned.
The statement said: "The Group continues to evaluate shifts in its asset mix and duration. Accordingly, under the oversight of the Group's investment committee and managers, the Group has initiated a shift to increase its asset weighting in high quality mortgage-backed securities.
"There have been no significant changes in the financial position of the Group since the revised announcement on 10 March 2008 of the Group's preliminary results for the year ended 31 December 2007."
Alea was bought by private equity group, Fortress, in June last year for a fee in the region of $300m.
