BFD Benfield Group

RNS Number:5087J
Benfield Group Limited
10 December 2007



10 December 2007


                             BENFIELD GROUP LIMITED

                        Share Buyback and New Debt Facility

Benfield Group Limited (the "Company" or the "Group"), the world's leading
independent reinsurance and risk intermediary, today announces a share buyback
and new debt facility designed to enhance the capital structure of the Group.

Highlights

   * The Company proposes to apply up to #150 million to fund a share buyback
     programme over the next two years, subject to market conditions.

   * The Company has arranged a new debt facility for up to #300 million
     with Bank of Scotland plc, Barclays Capital (the investment banking 
     division of Barclays Bank plc) and Lloyds TSB Corporate Markets to fund the
     buyback programme and meet the prospective capital requirements of the 
     Group.

   * Benfield also issues a Trading Update ahead of the 2007 year end.

Grahame Chilton, Chief Executive of Benfield, commented: "I am delighted that we
are able to announce another significant share buyback programme supported by a
new debt facility which will enhance the capital structure of the Group. The
trading environment remains challenging and the weak dollar will have a further
adverse impact on reported results in the second half of 2007. Nevertheless the
broking operations continue to generate growth on a constant currency basis and
we see increasing demand for our specialist expertise in capital markets and
structured solutions."

Share Buyback Programme

Following a comprehensive review of the Group's capital requirements, the
Benfield Board ("the Board") concluded that it would be appropriate to increase
the leverage in the business. Accordingly, the Company today announces the
successful negotiation of a new debt facility for up to #300 million and the
launch of a new share buyback programme which the Board believes will enhance
the efficiency of the Group's balance sheet and lead to increased earnings per
share.

Following the successful conclusion of the previous share buyback programme
announced on 14 June 2006, the Company today announces that, subject to market
conditions, it intends to use up to #150 million to carry out a new share
buyback programme over the next two years. The Board's resolution approving the
share buyback programme authorises the Company to implement the programme by way
of market purchases, tender offers, accelerated purchase programmes or privately
negotiated transactions.

The Board has resolved to make repurchases under the share buyback programme
only if it considers them to be in the best interests of the Company and its
shareholders as a whole and expects the repurchases to result in an increase in
earnings per share.

New Debt Facility

The Company has arranged a new debt facility of up to #300 million with Bank of
Scotland plc, Barclays Capital (the investment banking division of Barclays Bank
plc) and Lloyds TSB Corporate Markets which will be used to repay the Group's
existing debt. This new facility will be drawn down as required to fund the
share buyback programme and provide capital for general corporate purposes.

Trading Update

As stated in the Interim Results announcement of 6 September 2007, the results
for the first half of 2007 were significantly affected by the weakness of the US
dollar and by softening of the reinsurance market. As also noted at the time of
the interim announcement, the Board's expectation that reported trading profit
for the full year would be at a similar level to that achieved in 2006 was
subject to deterioration in exchange rates or in market conditions. The adverse
impact of these two factors, particularly the further weakening of the dollar,
has continued in the second half of the year. Consequently, the Board now
estimates that reported trading profit for 2007 will be marginally lower than
previously indicated, subject to expectations on business streams in the final
quarter of 2007 being met. However the Group's broking operations continue to
generate growth on a constant currency basis, driven by significant new business
wins and a sustained increase in demand for property catastrophe reinsurance
cover in peak exposure zones.

The outlook for 2008 is again likely to be affected by the weak dollar.
Reinsurance capacity is ample in most markets and in the absence of significant
global reinsurance losses Benfield anticipates further softening of rates over
the next twelve months. While lower reinsurance pricing typically stimulates
increased buying of reinsurance overall, it is too early in the cycle for this
to occur and the current trend for insurers to retain more risk is expected to
continue into 2008.

Contacts:

Grahame Chilton, Chief Executive       Benfield             +44 (0) 20 7578 7000
John Whiter, Chief Financial Officer   Benfield             +44 (0) 20 7578 7000


Analysts & Investors
                                                         
Julianne Jessup                        Benfield             +44 (0) 20 7578 7425
Rob 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 specialist 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. Benfield is listed on the London
Stock Exchange under the ticker symbol BFD. www.benfieldgroup.com.




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