Bermuda-based Alea could go public after an international news report said its lead investor, Kohlberg, Kravis Roberts, may want to sell off its investment in the company through an IPO later in the year.

The report, published last week in the Financial Times, said KKR was looking to exit Alea after holding the asset for six years. No one at Alea's Crown House offices was willing to speak with The Royal Gazette onFridayon the possibility of an IPO, which would probably take place in the fourth quarter according to the report.

Alea was the result of KKR's purchase of Rhine Re, a Swiss company, in 1997 but was only re-branded as Alea some years later. By late 2001 KKR remained firmly behind Alea which got a $250 million capital injection while Alea Group Holdings (Bermuda) Ltd., as the holding company for the Alea Group, was formed. If Alea is put up as an offering, investors could see it as a good investment opportunity and snap up shares. Last year Alea posted an after-tax profit of $55.6 million. During that same period net written premiums grew by 118 percent to $708.2 million ($931.6 million gross) and Alea saw its total assets grow by 17 percent to $2.7 billion compared to $2.34 billion a year earlier.

During 2002 the company also fared better with rating agency Standard and Poor's than did some of its competitors. S&P moved the company's rating outlook to stable, while many other reinsurers suffered rating downgrades.

Meanwhile, last week's report said KKR's flotation of Alea could be one of the largest European new issues this year.

KKR has reportedly appointed Goldman Sachs and Merrill Lynch to prepare Alea for a public listing. And the flotation is projected to raise more than ?400 million.

The Financial Times also reported that KKR may be considering a dual listing for Alea on two stock exchanges "although people close to the situation said it would probably opt for a sole UK listing".

The Alea Group has offices in Bahrain, Bahrain, Bermuda, Jersey, Kuala Lumpur, London, New York, Norwalk, Rocky Hill, Singapore, Stockholm, Sydney, Toronto, Tokyo and Tunis.