Alea has been placed on credit watch by Standard & Poor's. The troubled insurer and reinsurer yesterday announced it was planning a $210m equity rights issue to stem the tide of reserve calls from its US casualty underwriting.

In a statement from Alea Group Holdings, the company said: "Alea has been notified that Standard & Poor's is placing it's A- counterparty credit and insurer financial strength ratings on the operating entities that comprise the Alea group (Alea) on credit watch with negative implications."

Alea indicated that it will hold discussions with Standard & Poor's early next week to address its concerns.

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