Alea is set to become the latest casualty of Hurricane Katrina as it prepares...
Alea is set to become the latest casualty of Hurricane Katrina as it prepares to place all or part of its business into run-off.
The Bermudan insurer is understood to be in talks with a number of run-off outsourcing specialists, following a failure to raise capital after $30m net losses from the devastating US hurricane.
Citadel, Castlewood and Tawa are all understood to be interested in taking on the potentially lucrative run-off business of Alea and fellow Bermudan reinsurer Rosemont Re owned by Goshawk.
A spokesman for Alea said: “We are exploring all avenues at the moment, although capital-raising has been ruled out.”
One likely option would be to place Alea's troubled US casualty and reinsurance wings into run-off and to sell off the better performing parts of the insurance business in chunks.
