BFD Benfield Group

RNS Number:3993N
Benfield Group Limited
10 June 2005

                                 TRADING UPDATE


Benfield Group Limited ("Benfield" or the "Group"), the world's leading
independent reinsurance and risk intermediary, takes this opportunity to update
the market on the continuing progress of its current investment plans, their
financial impact on its 2005 numbers and additionally to comment on current
trading.



As previously stated, Benfield is prepared to incur short-term impact on profit
and margin to improve growth prospects and is confident that carefully targeted
expansion will significantly enhance the medium term outlook for the Group.  In
line with this stated strategy, Benfield is investing in its people and
infrastructure to capture opportunities arising out of the current market
environment.  As a result, for 2005 the Group anticipates a lower trading result
than in 2004.  Group revenues on a sterling basis are expected to be flat,
although higher in constant currency terms.



Unprecedented changes in the insurance industry are providing strategic
opportunities for Benfield to invest in its reinsurance production and marketing
capabilities, both in the US and International Divisions.  As with any such
investment, Benfield does not anticipate significant additional revenue
generation until 2006 and 2007.  In addition to an organic increase of
approximately 6% in the underlying cost base, actual and anticipated recruitment
costs are likely to add approximately #12m to expenses in the current year.  The
Group remains committed to firm cost control.



It is also anticipated that the development of a specialist insurance broking
business in the energy, marine and power sectors, which was referred to in
Benfield's Preliminary Results on 11 March 2005, will result in an additional
#8m of net investment during 2005.  Benfield will outline its strategic
proposals and growth plans for this business at its planned analysts' seminar on
28 June 2005.



US revenue production in the first half of 2005 was adversely affected by
short-term market disruption. This resulted from the various regulatory
investigations of the insurance industry which commenced in 2004.  As previously
stated, however, Benfield sees this scenario as presenting long term
opportunities.  In the International Division, Global Specialty revenue has
stabilised and there continues to be good progress in areas targeted for growth.




Separately, Benfield also announces that Paul Karon, formerly President and
Chief Operating Officer of Benfield Inc., has been appointed Chief Executive
Officer of the US Division. In addition, Rob Bredahl and Ralph Flum have been
appointed President and Chief Operating Officer of the Division respectively.

                                     -ENDS-


Wire Service Conference Call

There will be a wire service conference call at 0730hrs this morning (10 June).  Journalists wishing to participate are 
asked to call +44 (0) 1452 542309, the passcode is 841221 and the Chairperson is Peter Rigby.

Analyst Questions & Answer Session

There will be an analyst Q&A session at 0900hrs this morning (10 June) at Benfield's offices at 55 Bishopsgate, London 
EC2N 3BD.  Analysts wishing to attend are asked to call
Julianne Jessup/Suzannah Seddon on +44 (0) 20 7578 7425/7490 or email:
julianne.jessup@benfieldgroup.com or suzannah.seddon@benfieldgroup.com.  The session will be accessible via a conference
call facility for those unable to attend.  For information please also contact Julianne Jessup/Suzannah Seddon.




For further information, please contact:



Analysts & Investors

Julianne Jessup                         Benfield            +44 20 7578 7425

Rob Bailhache                           Financial Dynamics  +44 20 7269 7200



Media

David Bogg                                Benfield          +44 20 7522 4016

Peter Rigby                               Haggie Financial  +44 20 7417 8989



Benfield is the world's leading independent reinsurance intermediary and risk
advisory business.  Its customers include most of the world's major insurance
and reinsurance companies as well as Government entities and global
corporations.  Benfield employs over 1,700 people based in more than 30
locations worldwide.  The company is listed on the London Stock Exchange under
the ticker symbol BFD. www.benfieldgroup.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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