Troubled insurer Alea Group Holdings (Bermuda) Ltd. yesterday sold a US subsidiary to a unit of Praetorian Financial Group for $34.6 million.

Alea, which is in run-off, said its subsidiary, Alea North America Insurance Company, completed the sale of its Delaware excess and surplus lines carrier, Alea North America Specialty Insurance Company to Insurance Corporation of Hannover, a member company of Praetorian.

On completion, the Group received $34.6 million in cash. The company said any realised gain from the sale will be accounted for in the group?s consolidated income statement for the year ending December 31.

Following the announcement of the Group?s intention to cease underwriting and place its insurance operations into run-off earlier this year, the Group adopted a run-off plan that includes a proactive cost management programme including consolidation of certain operations to improve operational efficiency.

London-based Goshawk Insurance Holdings P.L.C. has reported a ?2.6 million ($4.9 million) net loss in the first half of 2006, compared with a ?500,000 loss in the same period in 2005.

In his report, chairman Rory Macnamara said that the company had continued in ?fragile state? since last reporting on September 1, 2006.

Goshawk owns Rosemont Reinsurance Ltd., a Bermudian reinsurer that went into run-off last year having sustained significant hurricane losses in 2004 and 2005.

Mr. Macnamara said that the first half loss was due to ?continued high levels of both expenses and financing costs due to the default rates being charged on the group loans?.

On September 26, Goshawk?s shareholders agreed to a ?19.8 million rights issue which will be used to repay bank debt.

He also said Rosemont Re still had a significant number of policies in force and, while management had cancelled many of these, material exposure remained during the first half.

As a result Rosemont Re had spent $1 million on purchasing reinsurance to cover earthquake and windstorm claims.