Bermuda-registered reinsurer Alea Holdings may announce a rights issue when it releases its results next week, The Guardian newspaper reported yesterday.

The British newspaper said Alea ?attracted attention? on Monday amid talk that next week?s interim results will be accompanied by a rights issue.

Alea warned in June that it might have to raise cash after AM Best, the credit ratings agency, announced it had put the company?s A- rating under review citing concerns about its capital position, The Guardian said.

?Sector watchers believe Alea needs to raise between pounds ?80 million to ?110 million to maintain an A-range rating, which is crucial for new business,? the newspaper said. ?They reckon the company will look to raise two-thirds of that figure from a rights issue and the rest from a debt issuance.?

Alea shares, which were trading at ?1.85 before the AM Best news broke in June, closed 0.25 pence higher at ?1.525 on Monday, valuing the company at ?340 million.

The report seemed to knock the shares yesterday, as they fell 3.5 pence to ?1.49.