Standard & Poor's said its ‘A-‘ ratings on the Alea Group would not be affected the announcement that its forecast earnings for the full year 2004 have been revised downward.

Alea attributed the lowered forecast to adverse development on its loss reserves in respect of the 2002 underwriting years.

The rating agency said: "While unexpected, the proposed additions to reserves are of a magnitude that can easily be absorbed by the group's very strong capital base, which continues to underpin the ratings at their current level."

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