Bermuda-based reinsurer Alea Group Holdings Ltd. said it is "confident" of meeting its first-half pretax operating profit target after gross premiums rose 30 percent.

Casualty insurance rates are rising, though at a slower pace than a year ago, the company said in a statement. Property rates have fallen as much as 20 percent.

"The year to date performance has been reassuring and we remain confident that our strategic focus on small to mid market clients in alternative risk, excess and surplus lines, US casualty and Europe is the correct one," chief executive Mark Ricciardelli said in the statement.

"In all these areas, rates, terms and conditions remain strong, and with reported claims development in line with expectations, we are confident of achieving our pre-tax operating profit targets.

"In casualty lines, we are still seeing rate improvement over 2003 albeit at a slightly slower pace than last year.

"In the property areas, there is continuing evidence of rate decline in the capacity driven accounts, where, generally, we do not compete, but rates remain well above our internal hurdles. We will continue proactively to monitor rate movements and will not hesitate to respond appropriately to maximise returns."

Shares of Alea were up 0.2 percent to 226 pence at 8:35 a.m. in London. The stock has fallen 10 percent since the company raised $263.7 million in an initial public offering on the London Stock Exchange last November.

The insurer is "on course" to reach its premium targets for this year as market conditions remain "firm," it said.

Alea had gross written premiums of $1.3 billion in 2003.

The insurer will release first-half earnings on September 21. It didn't specify in today's statement what its first-half pretax operating profit target is.

Buyout firm Kohlberg, Kravis Roberts owns about 40 percent of Alea's shares.