The unexpected absence of an Alea executive scheduled to take part in a panel discussion yesterday raised eyebrows at the inaugural Bermuda Captive Conference 2005.

Robert Byler, chief executive of Alea Alternative Risk, was due to be one of three industry experts taking part yesterday morning in a session at the conference. His absence was explained as due to business reasons. The three-day conference which wrapped up yesterday attracted about 300 delegates eager to hear from experts on issues unique to this specialised sector.

Mr. Byler?s absence coincided with questions over Alea?s future. Whether the company can continue as a going concern has been plunged into doubt because of a financial strength ratings downgrade from leading ratings agency Standard & Poor?s, dropping its rating down from A- to BBB+.

An Alea spokesperson contacted by said Mr. Byler was tied up in meetings at the company?s US headquarters in Rocky Hill, Connecticut. He would not comment on whether Mr. Byler?s last-minute absence in Bermuda was related to the company?s recent ratings woes.

Alea is also under the watch of rating agency AM Best, with its A- financial strength rating under review with negative implications. Its main concern is Alea?s level of capitalisation.

Insurers cringe at even the prospect of a ratings downgrade as it can be a death knell for business prospects.

Even policies already sold may be revoked by buyers, with most insurance contracts carrying a clause that amounts to an exit visa when ratings fall out of the ?A? range.

In an official statement on Friday, Alea said it was actively reviewing its options including the group?s sale. The company has operations in the US and Europe, and a small office in Bermuda, where it is based.

Neil Manser, an analyst at Fox-Pitt, Kelton, wrote in a note on the company earlier this week: ?The impact from a rating downgrade to the ?BBB? level is meaningful and, as a benchmark, Scor [the French reinsurer and Converium [of Germany lost around 50 percent of premium income once downgraded.?

Alea?s European head said in an interview from Monte Carlo with Reactions magazine, earlier this week, that interest could come from Bermuda or American companies interested in expanding into Europe.

Analysts have questioned whether Alea will be an easy sell, partly because most companies are not interested in taking on a company?s legacy issues, after some have been burned by steep claims inherited in acquisitions. As well, company heads may now have a more narrowed focus on their own companies after Hurricane Katrina, which is likely to leave the industry with a bill of up to $60 billion, while also creating opportunities to profit from sales next year with it likely that property-catastrophe policy rates will rise.