Alea Group has warned it expects a net loss for the year as it upped its estimates for pre-tax losses for Hurricane Katrina to $55m-$70m, net of reinsurance and including reinstatement premiums, from previous estimates of $20m-$30m.
The company said its ability to arrive at an accurate assessment of the overall impact of Katrina is affected by the complexity of damages caused and related issues.
Alea also forecast its pre-tax loss from Hurricane Rita to be $5m-$10m and pretax losses for European floods to be at $10m-$12m. However, it said it was too early to provide an estimate of loss ranges for Hurricane Wilma.
The insurer said it is is continuing to pursue strategic alternatives to its current business structure including the sale of the group or specific operations, adding that due diligence and discussions with potentially interested parties are continuing.
Alea said it is also developing contingency plans for the run-off of businesses that are not sold.
