Bermuda-based Alea Group Holdings said its positive outlook for 2004 continued, boosted by good renewals and trading conditions.
The company said the vast majority of its European business and a significant proportion of its London business renews during the first half of the year.
The group said: “Alea remains on course to achieve its premium plan for 2004, and with conditions remaining firm in its chosen markets and with reported claims development in line with expectations, Alea remains confident of achieving pretax operating profit targets.”
The company said its target growth areas of alternative risk, excess and surplus lines, US casualty reinsurance and Europe, had all experienced good trading conditions in the first half of the year.
For Alea London, gross written premium grew by 10%, excluding Bristol West, during the first half of the year.
It said its target insurance market in the US was growing rapidly, with year to date gross written premiums up by 169% on the first half of 2003. It said rates in the liability lines of business had increased by 5%–10% on 2003 levels, with property rates up 0%–5%.
The group's reinsurance operation, Alea North America, saw a 38% increase in gross written premiums, with high levels of renewals and significant volumes of new business. Alea said its North American business remained on track for the year.
Alea group chief executive Mark Ricciardelli said: “The year to date performance has been reassuring and we remain confident that our strategic focus on small- to mid-market clients in alternative risk, excess and surplus lines, US casualty and Europe is the correct one.
“In all these areas, rates, terms and conditions remain strong and with reported claims development in line with expectations we are confident of achieving our pre-tax operating profit targets.
“In casualty lines we are still seeing rate improvement over 2003, albeit at a slightly slower pace than last year.
“In the property areas there is continuing evidence of rate decline in the capacity driven accounts, where, generally, we do not compete, but rates remain well above our internal hurdles.
“We will continue proactively to monitor rate movements and will not hesitate to respond appropriately to maximise returns.”
