BFD Benfield Group

RNS Number:5451E
Benfield Group Limited
14 June 2006




14 June 2006


Benfield Group Limited - First Half Trading Update and
#75 million Share Buyback Programme Announced


Benfield Group Limited ("Benfield" or the "Group"), the world's leading
independent reinsurance and risk intermediary, today issues an update on current
market conditions and the outlook for the Group ahead of the first half period
end.


2005 was the second successive year of record catastrophe losses with market
estimates for the combined insurance loss generated by hurricanes Katrina, Wilma
and Rita of more than US$65 billion and Hurricane Katrina in particular
generating the largest ever insured loss.  As expected, the full impact of these
losses on the reinsurance market has yet to emerge, but in loss-affected areas
there has been a further retraction of capacity since January renewals.
Reinsurance capacity for Florida risks in particular has been severely curtailed
and is insufficient to meet growing demand.  Outside loss-affected areas,
reinsurance capacity remains adequate to meet demand with pricing generally
stable.


Benfield's strength in property catastrophe reinsurance has enabled the Group to
respond positively to meet customer needs for capacity with innovative solutions
which have contributed to strong new business growth. The Group continues to
make targeted investments in people in both the core reinsurance business and in
Benfield Corporate Risk, which is making good progress in line with its business
plan.


Although since the start of 2006 the US dollar exchange rate has fallen against
sterling, the Group continues to anticipate substantial overall revenue growth
in 2006. As previously stated, the 2006 trading result is expected to amount to
at least the #86.3* million achieved in 2004.  As a result of the ongoing
development of Benfield Corporate Risk and the expansion of some of the areas
targeted for growth in the reinsurance business, more revenue than in the past
is expected to fall in the second half of the year.


The Group also today announces that it intends to set aside up to #75 million to
support a further share buyback programme which will be implemented over the
next 12 months. Subject to market conditions, some of this may be used to
acquire employee shares as part of a share sale facility which is due to take
place on 20 June 2006 in connection with the final release of employee shares
from the lock-up restrictions put in place at the time of the Company's initial
public offering in June 2003.


* Restated to reflect the adoption of International Financial Reporting
  Standards


-ENDS-

For further information, please contact:


Investors & Analysts

Julianne Jessup                Benfield                      +44 (0)20 7578 7425
Robert Bailhache               Financial Dynamics            +44 (0)20 7269 7200



Media

David Bogg                     Benfield                      +44 (0)20 7522 4016
Peter Rigby/David Haggie       Haggie Financial              +44 (0)20 7417 8989


Benfield is the world's leading independent reinsurance and risk intermediary.
Its customers include many of the world's major insurance and reinsurance
companies as well as government entities and global corporations.   Benfield
operates from more than 40 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

TSTIIFLTRVISLIR

Benfield (LSE:BFD)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Benfield (LSE:BFD)
Historical Stock Chart
Von Jul 2023 bis Jul 2024