Alea Group Holdings Ltd., a Bermuda-based reinsurer, said claims, costs and investments this year are "in line" with its forecasts.

The company has started to increase the assets it holds in "high-quality" mortgage-backed securities and continues to try to reduce costs, it said yesterday in a Regulatory News Service statement.

The statement said that during the first quarter Kirk Lusk had resigned as Group chief financial officer and chief operating officer and as a director of Alea. Carl Speck was appointed Interim Group chief financial officer, effective March 31, 2008.

Alea, which has been in "run-off" - that is closed to new insurance business - since it made major storm losses in 2005, lost $78.2 million in 2007.

Last year's loss was put down to one-off costs relating to the redemption of two major reinsurance contracts. The company also paid off around $200 million of bank debt during the year.

Alea said earlier this year that it was considering a number of potential future strategies in the insurance and reinsurance sectors.

US buyout firm Fortress bought a 72.4-percent stake in Alea last year for £121.4 million.