LONDON (Bloomberg) ? Alea Group Holdings Ltd., a Bermuda-based reinsurer, expects a full-year loss after raising its estimates for damages related to Hurricane Katrina.

The company forecasts pre-tax losses of between $55 million and $70 million from damages related to Hurricane Katrina, Alea said in a statement yesterday. The reinsurer had previously predicted losses of between $20 million and $30 million from the storm.

Alea is considering a sale of all or parts of the company after abandoning plans in September to sell shares to raise funds. The company is also cutting costs and has said it expects to lose clients after its credit rating was cut by A.M. Best.

?Alea is continuing to pursue strategic alternatives,? the company said in the statement. ?Due diligence and discussions with potentially interested parties are continuing.?

Alea forecast losses of as much as $10 million from Hurricane Rita and between $10 and $12 million from European floods. The company said it was too early to estimate the effect of Hurricane Wilma on its business.

The stock was down 5.6 percent to 114 pence in London, valuing the company at 197 million pounds. The shares have dropped 54 percent since they were first sold to the public in November 2003.