Alea off to good start in London

BERMUDA-registered reinsurer Alea hit the London market with a bang on Friday as its shares climbed nearly 6% in conditional dealing ahead of next week's full £433m listing.

The company is selling 66m shares to institutions in what is only the fifth new issue on the main London market this year - the second in the insurance sector after Benfield in July.

Alea is raising £165m through the float to fund internal growth and build its property and casualty business, which provides liability cover for small firms in the US.

The offer price was set at 250p, and the shares rose 14p to 264p in early trading. Unconditional dealing begins next Wednesday.

Chairman and chief executive Dennis Purkiss, who holds a 1% stake, said: 'The offer was about three times oversubscribed and the quality of the shareholder register is very good.'

The new shares represent 38.2% of the enlarged capital, with US buyout giant Kohlberg Kravis Roberts' stake whittled down to 39.4%. It created Alea three years ago after buying Swiss reinsurer Rhine Re in 1997.