LONDON (Bloomberg) ? Alea Group Holdings Ltd., a reinsurer that raised $260 million in its initial share sale in November, renewed its two largest contracts in London and said the outlook for 2004 is ?positive?.

Alea?s London unit renewed the two contracts, which generate premiums of more than $220 million, the Hamilton, Bermuda-based company said in a statement.

Written premiums are ?slightly ahead of plan and rates remain strong for all lines?, of Alea?s ?target? areas of business, Chief Executive Dennis Purkiss said in the statement.

Alea had been under pressure from ratings companies to raise capital to fund its business. Under Purkiss, who took over in 2000, Alea in 2002 more than doubled net premiums to $708 million.

Much of the company?s European and London business renews during January.

The insurer?s shares were up two percent to 255 pence at 10:25 a.m. in London, giving the company a market value of ?441.5 million. Alea sold the shares in its IPO at 250 pence.

Premium rates for property insurance have shown ?signs of deterioration,? Alea said in the statement. As a result, the company is increasing the proportion of casualty insurance business it writes as rates ?improve? it that area.

Alea will release 2003 earnings on March 15.