A.M. Best Removes Alea Group and Its Subsidiaries from Under Review; Downgrades Financial Strength and Issuer Credit Ratings.

OLDWICK, N.J. -- A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A- (Excellent) and the issuer credit rating to "bbb" from "a-" of the insurance and reinsurance operating subsidiaries of Alea Group Holdings (Bermuda) Ltd (collectively referred to as Alea Group or Alea). This rating action removes the under review status of the rating, which occurred in June 2005. The rating applies to Alea London Limited, Alea (Bermuda) Limited, Alea Europe Limited, Alea North America Insurance Company, Alea North America Specialty Insurance Company, Alea Global Risk Limited and Alea Jersey Limited. The outlook for all ratings is negative.

A.M. Best believes that compound annual growth in net premiums written of 60% between 2001-2004 and significant reserve shortfalls from prior underwriting years, which have greatly weakened operating performance, have placed a strain on the company's risk-adjusted capitalisation. A.M. Best remains concerned about Alea's ability to significantly improve performance to the level required to sustain capitalisation going forward. Although premium levels are expected to decline as a result of changes to Alea's business plan and its diminished business profile, the company has insufficient capital to maintain an A- (Excellent) financial strength rating, taking into account the potential for further poor operating performance. The company unlikely will be able to address this issue by raising additional capital in 2005.

A.M. Best expects Alea's future performance to continue to deteriorate as a result of expenses pressure due to declining business volumes, catastrophe experience in the second half of 2005 and the possibility of further deterioration in prior year reserves. Combined, these factors could lead to performance considerably below the group's long-term target of a 12%-15% post tax return on capital and surplus.

A.M. Best anticipates a decline in gross premiums written in 2005 of above 10%, reflecting restructuring of the company's underwriting, management of exposure and withdrawal from certain poorly performing classes. Further ahead, Alea's access to certain business classes and territories will be detrimentally affected by concerns relating to its recent performance.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.