A British contractor was freed Wednesday and in good health more than two years after he was abducted, apparently the only survivor of a group of five Britons abducted in a daring raid outside Iraq's Finance Ministry in 2007.

His release came as a bombing in the country's western Anbar province killed 23 people and narrowly missed the province's governor. The high-profile attack in what used to be a stronghold of the insurgency was a sign of the tenuousness of the security in Iraq.

Computer consultant Peter Moore, who was handed over to Iraqi authorities Wednesday morning, was abducted in May 2007 along with his four British bodyguards. All the bodyguards are believed dead.

Foreign Secretary David Miliband said Moore, 36, was in good health at the British Embassy in Baghdad and would soon return to Britain. He said no concessions had been made to the hostage-takers and that Moore's release was the result of the reconciliation process between Iraq's government and armed groups willing to renounce violence.

Moore's release, however, coincided with the transfer of the head of the militant group behind the kidnapping, Asaib Ahl al-Haq, or League of the Righteous, from U.S. to Iraqi custody.

Qais al-Khazali, along with his brother, were accused of organizing a daring attack on a local government headquarters in the city of Karbala that killed five U.S. soldiers on Jan. 20, 2007.

Moore's kidnappers had demanded his release along with that of several Shiite militiaman held by U.S. forces. The militant group in August promised to lay down its weapons and join the political process, which had raised hopes for Moore's release.

In London, a spokeswoman for Britain's Foreign Office told The Associated Press that U.S. forces transferred al-Khazali to Iraqi custody on Wednesday but denied any connection with Moore. She spoke on condition of anonymity in keeping with department regulations.

In Baghdad, a representative of al-Khazali's group and an Iraqi member of the negotiating team that helped secure Moore's release said al-Khazali was transferred, but they said it took place about a week ago.

Neither would say explicitly that there was a deal, but they added that the militant group did not release Moore until it confirmed the transfer.

In Washington, a senior U.S. defense official said al-Khazali was released Wednesday under an arrest warrant for further detention and was one of 1,522 prisoners handed over to Iraq by the U.S. this year as part of reconciliation efforts.

The officials in Iraq and Washington all spoke on condition of anonymity because they were not authorized to discuss the matter.

Moore's father, Graeme, said the family was looking forward to having him back.