Alea Group Announces Strong 2002 Performance

Alea Group Holdings (Bermuda) Ltd announced a strong operating performance for 2002. Net written premiums grew by 118 percent to $708.2m ($931.6m gross) and the Group recorded a total after tax profit of $56.2m including realised and unrealised gains. Total assets grew by 17 percent to $2,743m (2001: $2,345m).

The Group has seven licensed insurance companies which provide an unusual breadth of licensed entities. Each of these entities was profitable in 2002. Each has a Group rating of A- from A.M. Best and Standard and Poor’s. During 2002 S&P’s changed the rating outlook to stable, a position which has continued while many of our competitors suffered rating downgrades.

Highlights include:

Gross premiums written were up 89 percent to $931.6m in 2002 (2001: $493.2m). Net Premiums written were up 118 percent to $708.2m (2001: $325.5m).

The combined ratio was 100.4 percent inclusive and 97.5 percent excluding catastrophes (European floods) (2001: 115.5 percent, 106 percent excluding catastrophes).

Solid infrastructure and well-integrated and multifaceted underwriting staff in place worldwide.

Investment performance was based on a deliberately risk averse strategy producing a total return on the asset portfolio of 7.4 percent.

Overall, the Group’s net paid claims were on plan and total operating cash flows were better than plan.

Total assets grew by 17 percent to $2,743m (2001: $2,345m)

Total after tax profit of $55.8m in 2002 (2001: a loss of $22.2m)

Return on equity of 13 percent

Total insurance operating capital grew to $660.7m (2001: $594.5m)