Deal will "crystallize value in Alea London", says chief executive

Bermuda-based insurer Alea has entered into a share purchase agreement to sell its UK based subsidiary Alea Holdings UK to Catalina Holdings (Bermuda).

In a statement, the company said that Alea Holdings UK will be sold at a slight discount to the book value at which it was carried in the group's consolidated financial statements as at 31 December 2008.

Completion of the transaction is contingent upon customary closing conditions and the required regulatory approvals and notices.

Mark Cloutier, chief executive said: "This transaction represents both an opportunity to crystallize the value embedded in Alea London and to align our London team with an established run-off acquirer. Once completed, the transaction will also provide additional financial flexibility for the group. We are hopeful the deal will complete by year-end, meanwhile, we remain focused on managing the orderly run-off of the group's balance sheet."

At 31 December 2008, Alea Holdings UK's consolidated IFRS accounts had total assets of $446.5m and total liabilities of $357.9m.

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