The company said it is consulting with its 125 London-based employees regarding their contracts of employment. Alea has also agreed to sell the renewal rights part of its London-based facilities insurance and reinsurance business to Canopius Holdings.

"The renewal rights transaction and decision to cease underwriting was taken as a result of the inability to attract a suitable volume and quality of business stemming from rating agency downgrades in the third quarter of 2005," Alea said in a statement.

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