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Member, Beacon International Group, Ltd.
HAMILTON, Bermuda--Reinsurer Alea Group Holdings (Bermuda) Ltd. is planning to raise $275 million in an initial public offering of its shares on the London Stock Exchange later this month.
Alea, which has operating units in the United States, Bermuda, the United Kingdom and several other countries, will use the proceeds to expand underwriting capabilities and redeem $50 million in subordinated preferred stock, sources familiar with the offering say.
A.M. Best Co. affirmed the group's A- rating after the announcement.
Hamilton, Bermuda-based Alea's first-half 2003 net earnings more than doubled to $34.6 million from the year-earlier period. For 2002, the group's gross written premium volume rose 89% to $931.6 million and net volume jumped 118% to $708.2 million. The reinsurer finished the year with operating capital of $660.7 million.
Alea is owned by affiliates of the investment firm Kohlberg Kravis Roberts & Co.