Bermuda’s Alea produces net loss of $44.7m

BERMUDIAN reinsurer in run-off Alea produced a net loss of $44.7m for the first half of 2009, having broken even during the corresponding period last year. Adverse reserve development was $10.9m, net of reinsurance and excluding the impact of commutations. This compared with adverse reserve development of $6.6m during the corresponding period last year. The loss after tax from continuing operations was $33.7m, compared with a loss of $3.5m during the first half of 2008. In June, Alea entered into a share purchase agreement to sell its UK-based Alea Holdings UK Ltd to Catalina Holdings (Bermuda). Mark Cloutier, chief executive of Alea, will step down from the board of directors and resign his position as chief executive with effect from March 31, 2010.