Alea Group Holdings Ltd., a Bermuda-based company now closed to new business, has announced the sale of Alea North America Specialty Insurance Company to Insurance Corporation of Hannover, a member company of Praetorian Financial Group, Inc.

Praetorian will purchase all of the shares in Alea North America Insurance Company? s Delaware excess and surplus lines carrier for $4 million cash and the policyholders? surplus of Anasic as of the closing date, Alea said in a press release.

Total consideration will be between $30 and $36 million.

Alea will assume 100 percent of all business written by Anasic prior to the closing date. The obligations under the agreements will be supported by a guarantee of the Group.

Alea went into runoff late last year after suffering rating agency downgrades due to a series of poor results. The company posted a loss of $178.9 million in 2005.

Proceeds from the sale of Anasic will be held by the Group and placed on deposit pending utilisation by the Group in the execution of its run-off strategy. Subsequent distribution of proceeds is subject to regulatory approval and other conditions.

Total gross assets in Anasic are $41.3 million, with a profit before tax of $730,000, at December 31, 2005.