Alea pays off all outstanding debt

by David Masters

Story link: Alea pays off all outstanding debt

Reinsurance group Alea paid of 20% of its liabilities during 2007, according to a statement released by the company.

The group’s Insurance contract liabilities fell to $1.55 billion, down from $1.942 billion. This included Alea paying back all of their existing loans, and cutting back staff numbers by over 25%, from 137 to 105.

In April 2006 Alea was placed into run-off after reporting losses of $179 million for 2005 due to hurricane Katrina. In 2006, losses fell to just $0.8 million with net premiums falling 75% to $216 million.

In June 2007 Alea was acquired by private equity group Fortress for around $300 million.