Bermuda-based Alea Group Holdings Ltd. released a statement following the conclusion of the of the Group’s Annual General Meeting held on Thursday, June 2, indicating that its underwriting efforts remain profitable and that claims development is normal.
Chairman of the Board of Directors John Reeve commented: “Alea continues to benefit from the current favourable market environment. Underwriting conditions in our core specialty insurance and reinsurance businesses continue to present profitable opportunities, with average rate (weighted premium price net of loss trend) decreases of 2 percent 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.”
CEO Mark L. Ricciardelli added: “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 percent to 15 percent return on equity.”
Alea also announced that it would “release a pre-close period trading update and a statement on the impact of IFRS on its results for the year ended 31 Dec. 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 10 a.m. to 12 a.m. BST.
The group’s interim results for the six months ending 30 June 2005 will be announced on Sept. 8, 2005.
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