HAMILTON, Bermuda, June 10, 2005 (PRIMEZONE) -- Alea Group Holdings (Bermuda) Ltd., (Pink Sheets:AEGHF) the specialty insurer and reinsurer, today announced that it has been notified that AM Best is placing its financial strength rating of A- (Excellent) and its issuer credit rating of A- under review with negative implications.
Alea is currently in discussions with AM Best, who have indicated that it will require the company to significantly increase its capital to maintain its rating.
"We are disappointed with AM Best's decision," stated Mark L. Ricciardelli, Chief Executive Officer. "Nonetheless, Alea is considering the most appropriate and expedient method for addressing AM Best's concerns and to maintaining its ratings, which would include raising additional capital, the exact form of which we will begin discussing with our financial advisors."
In an unrelated development, Alea also announced that on June 9, 2005, in connection with an industry-wide investigation, it received a subpoena from the Securities and Exchange Commission for documents relating to certain non-traditional, or loss mitigation, insurance products. Alea intends to fully cooperate in responding.
Alea is a global specialty insurance and reinsurance company with expertise in a wide range of property and casualty products and services. 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.