Alea Group Holdings Ltd., a Bermuda reinsurer now closed to new business, yesterday reported large 2005 losses on the heels of last year?s catastrophes, and said it is working to trim costs as it winds up the company.

The 2005 after-tax loss was $178.9 million, beating a January forecast of losses between $200 million and $240 million. Alea last year made the decision to go into run-off after it saw its credit and financial strength ratings fall below the crucial ?A-? level and it became clear the company would not attract enough business to continue.

Alea is ?focused on preservation of value with a view to returning cash to shareholders through effective run-off strategies,? said chairman Mark L. Ricciardelli, in the company?s earnings release. And he said the company continues to explore the possibility of selling off some parts of the company.

It already sold the renewal rights for some units, effectively giving permission to another reinsurer to deal with ones clients directly, earning more than $60 million.

A reinsurer in run-off remains open, usually with a skeleton staff, to honour claims on policies already sold but is closed to new business. Investors reacted positively to the news that Alea?s losses fell below earlier estimates, pushing shares up nearly 15 percent in mid-day trading.

The shares yesterday closed on the London Stock Exchange at 79 pence, a 13.26 percent gain over the day?s opening price. Alea has cut staff 180 staff since last year. It had 409 staff at the end of the year.