Alea Begins Programme of Capital Enhancement.

Business Editors

LONDON--(BUSINESS WIRE)--Nov. 2, 2001

Alea Group Holdings AG announces $100m USD capital injection from Kohlberg Kravis Roberts and Co. LLP (KKR), the US based private equity firm, as part of year-end 2001 capital enhancement programme. Standard and Poors affirms A - (minus) long term financial strength and counter party credit ratings.

Alea Group Holdings AG (Alea) a global reinsurance enterprise, announced today that by December 31, 2001 it will receive a capital injection of $100M (USD) from Kohlberg Kravis Roberts & Co. LP (KKR), the U.S.-based private equity firm.

The Company was started in December of 1997 when an affiliate of KKR and management acquired Rhine Reinsurance Co. Ltd. from the Baloise Insurance Company Ltd. Since its formation the reinsurance thesis was to couple a capital and tax efficient operating structure with market focused actuarial, underwriting and financial talent that could quickly respond to customers and brokers risk management needs. Alea today has the talent and operating subsidiaries in every major insurance market. The capital injection is a part of a capital enhancement program designed at increasing the capital base of Alea over the next several months. Concurrent with this announcement Standard & Poors has removed Alea and its operating subsidiaries from credit watch, affirmed its A minus long term financial strength and counter party credit ratings and changed the outlook from negative to stable.

Alea sees the USD 100 Million capital injection as being the first stage of an incremental capital enhancement program which will enable Alea to continue its strategy of profitable growth. Perry Golkin, a KKR member commented "KKR is committed to Alea and will continue to support the management team as they continue on the path of creating a customer focused global reinsurer. Alea now has the infrastructure, diversity of business, protected balance sheet (including no A&E liability exposure and no equity exposure), management and capital support to take advantage of an improving insurance/reinsurance market. Over the last twenty-five years KKR has proven itself as a prudent allocator of capital. We intend to provide Alea with the proper level of capital now and in the future without burdening the Company management with excess capital. Over the ensuing months, we will better understand the degree to which the fundamentals of the insurance/reinsurance marketplace have improved and we are prepared to ensure that the Group has sufficient capital to meet its clients needs."

Dennis Purkiss, Chief Executive Officer of Alea commented, "We are very appreciative of the support we receive from KKR. Being partners with KKR and their vast resources is an enormous advantage and KKR has proven itself as experienced and expert in the complexities of our industry. We have a very efficient and flexible capital structure that allows us to provide secure, stable and responsible capacity to the marketplace. Many of our staff have worked together for years and have sought to create a flexible and responsive reinsurance partner for brokers and customers to access. We have a consistent and focused approach throughout the world and in these difficult times you can expect quick and responsible solutions to your risk management needs."

The Alea Group is controlled by Alea Group Holdings AG in Baar, Switzerland which was organized in 1997 by management and an affiliate of Kohlberg, Kravis, Roberts & Co. to pursue targeted growth and acquisition opportunities in the insurance and reinsurance industry. The Alea Group has offices in Bahrain, Basel, Bermuda, Jersey, Kuala Lumpur, London, New York, Norwalk, Rocky Hill, Singapore, Stockholm, Sydney, Toronto, Tokyo and Tunis.