Mark Ricciardelli is stepping down as chief executive officer of Bermuda-based insurer Alea, which is in runoff, a victim of losses sustained during last year's devastating hurricane season.

In a statement, Alea said Mr. Ricciardelli is leaving his post “to pursue other interests.” His resignation is effective Aug. 31.

Mark Cloutier will assume the positions of group president and CEO, replacing Mr. Ricciardelli.

The company added that Kirk Lusk would continue as chief operating officer and chief financial officer.

“Since reaching this decision [to go into runoff], Mark Ricciardelli has done an excellent job of leading the restructuring and repositioning of the organization from a going concern into runoff,” said John Reeve, nonexecutive chairman of Alea, in a statement.

The company also announced the board approved a definitive agreement to sell Alea North America Specialty Insurance Company to Insurance Corporation of Hanover, a member of Praetorian Financial Group Inc.

The deal was for a cash payment of $4 million plus the policyholder's surplus in Alea North America. The entire transaction is worth between $30- and $36 million, Alea said.

Alea added that all of its operations are now in runoff.

The company decided to go into runoff after it found it could not attract a suitable volume and quality of business following a series of rating downgrades in the third quarter of 2005.

The company reported total storm losses for 2005 of $108.5 million, with a combined ratio of 126.1 percent.

Special Reports /

Alea CEO Steps Down

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