Alea Group Holdings Ltd. announced a loss of $78.2 million for 2007 yesterday — but the boss of the Bermuda reinsurer believes that the results will mark a positive turn-around in the company's fortunes.

One-time charges on policy claims and redemptions on reinsurance agreements were the reasons given for the loss, which compared to an $800,000 loss in 2006.

Alea has been in "run-off" — closed to new buisness — since it made large storm losses in 2005, but now it is considering a number of strategies for the future.

Alea's chief executive officer Mark Cloutier told The Royal Gazette: "It's not a particularly pleasing earnings release to put out, but I believe that this marks a repositioning of the company.

"The termination of the two reinsurance treaties has great future benefits for the company. We have repaid $200 million of bank debt.

"We are looking forward to the future, now we have put the past in its place. We're 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.

"The introduction of Fortress began a new era for Alea," Mr. Cloutier said.

However, Mr. Cloutier said the company's first priority remained "to manage the orderly run-off and release of capital" to shareholders.

Alea, which provides transport, aviation and marine reinsurance in the UK, Europe and US, reduced its gross claims provision to $1.5 billion from $1.9 billion a year earlier. Alea had more than 3,000 claims in its direct insurance portfolio during the year.

The contract redemptions, which freed about $200 million in cash, combined with acquisition expenses, cost Alea $45.7 million, the company said.

In the results statement, Mr. Cloutier said: "As we move into 2008, we believe we have better positioned the Group by simplifying our balance sheet, strengthening our reserves and significantly reducing our debt obligations...

"We continue to explore various options for the future of the Group, including our new addition, Alea Syndicate Management Ltd., which we formed in 2007 as a vehicle to pursue Lloyd's Reinsurance To Close (RITC) opportunities."