HAMILTON, Bermuda, June 3, 2005 (PRIMEZONE) -- Alea Group Holdings (Bermuda) Ltd (LSE:ALEA) released the following trading statement after the conclusion of the Group's Annual General Meeting held on Thursday 2 June 2005.
John Reeve, the Chairman of the Board of Directors, commented: "Alea continues to benefit from the current favourable market environment. Underwriting conditions in our core speciality insurance and reinsurance businesses continue to present profitable opportunities, with average rate (weighted premium price net of loss trend) decreases of 2% for the period up to 30 April 2005. Terms and conditions remain stable. In order to achieve our underwriting profitability hurdles we will continue our programme of strategic exits from lines of business that we believe may be susceptible to rate deterioration over the next 24 months."
Mark L. Ricciardelli, Chief Executive Officer, commented, "We continue to monitor claims activity extremely close and have not experienced any unusual reserve development in the first five months of the year. We remain comfortable that our reserve position is appropriately balanced. Previously announced pre-tax losses from Windstorm Erwin in January remain at our initial $20 million to $25 million estimate. We believe Alea is today in the strongest capital position in its history. We are focused on executing our strategic plan, and are well positioned to achieve our long-term goal of a 12% to 15% return on equity."
Alea will release a pre-close period trading update and a statement on the impact of IFRS on its results for the year ended 31 December 2004 on 8 July 2005. A presentation on these subjects and an analysis of the strategy of Alea's specialty U.S. insurance business will take place on the same date in the London Underwriting Centre from 10am to 12am BST.
Alea's interim results for the six months ending 30 June 2005 will be announced on 8 September 2005.
Alea is a global specialty insurance and reinsurance company with expertise in a wide range of property and casualty products and services. Alea is publicly traded on the London Stock Exchange under the ticker 'ALEA'. For more information on Alea, see www.aleagroup.com.
Certain statements made in this press release that are not based on current or historical facts are forward-looking in nature including, without limitation, statements containing words "believes," "anticipates," "plans," "projects," "intends," "expects," "estimates," "predicts," and words of similar import. All statements other than statements of historical facts including, without limitation, those regarding the Group's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Group's products and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. In particular, forecasting of reserves for future losses is based on historical experience and future assumptions. As a result they are inherently subjective and may fluctuate based on actual future experience and changes to current or future trends in the legal, social or economic environment. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. These forward-looking statements speak only as at the date of this press release or other information concerned. Alea Group Holdings (Bermuda) Ltd expressly disclaims any obligations or undertaking (other than reporting obligations imposed on us in relation to our listing on the London Stock Exchange) to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any changes in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. References in this paragraph to the Group are to Alea Group Holdings (Bermuda) Ltd. and its subsidiaries from time to time.