Alea Group Announces Strong 2002 Performance; Total Insurance Operating Capital Grows to $661m; Total After Tax Profit of $55.8m.

Business Editors

WILTON, Conn.--(BUSINESS WIRE)--April 10, 2003

Alea Group Holdings (Bermuda) Ltd announced today a strong operating performance for 2002. Net written premiums grew by 118% 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% 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 Standard and Poor'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% to $931.6m in 2002 (2001:

$493.2m). Net Premiums written were up 118% to $708.2m (2001:

$325.5m).

-- The combined ratio was 100.4% inclusive and 97.5% excluding

catastrophes (European floods) (2001: 115.5%, 106% 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%

-- Overall, the Group's net paid claims were on plan and total

operating cash flows were better than plan.

-- Total assets grew by 17% 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%.

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

$594.5m).

In commenting on the results, Dennis Purkiss (Chairman and Group CEO) said "I am very pleased with the continued progress of the Group. The work we have put in during the last three years bore fruit as we delivered a healthy profit. We have licensed operating entities in all key markets, over 370 professional staff, de minimis asbestos and environmental exposure with a sound well protected balance sheet and a very solid renewal book from which to continue our growth.

Over the last three years we have built a business which we believe is extremely well placed in today's market environment. The events of 2002, for example the continuing severe downturn in equities and the reduction of interest rates, coupled with the challenges many of our competitors face in dealing with prior years issues, create an environment in which we believe we can continue to build a company of real potential and profitability. 2003 year to date progress has been ahead of our plans and I am extremely excited about the Group's prospects."