BFD Benfield Group

RNS Number:4915W
Benfield Group Limited
12 March 2004



               Sale of Warrants in Montpelier Re Holdings Limited

12 March 2004

Benfield Group Ltd ("Benfield" or the "Company"), the world's largest
independent reinsurance intermediary, has today announced that it has undertaken
an irrevocable agreement to sell its holdings of warrants with entitlement to
2,390,785 common shares in Montpelier Re Holdings Limited ("Montpelier"), the
Bermudian reinsurance company.  The transaction, conducted through the Company's
wholly owned subsidiary Benfield Holdings Limited, will complete on 15 March
2004.

Benfield will receive gross proceeds of US$54 million from the sale.  In July
2003, Benfield raised net proceeds of US$27.7 million from the disposal of
947,479 common shares in Montpelier at a price of US$30.50 each.  The initial
cost to the Company of its total investment in Montpelier was US$25 million.

The warrants are to be sold to Fund American Reinsurance Company Ltd,a
subsidiary of the White Mountains Insurance Group.  On completion of the
transaction, Benfield's remaining investment in Montpelier will amount to
552,521 common shares.

Grahame Chilton, CEO of Benfield, commented; "The Montpelier team has achieved
great success, we are delighted with the return on our investment.  In line with
our policy of retaining a focus on our core intermediary business, we have now
taken this opportunity to reduce our holding.  Our support will continue for
both Montpelier and the Bermudian market, whose growth prospects we believe
remain tremendous.  We are thrilled to continue to be associated with
Montpelier's winning team."


                                    /ends...


For further information, please contact:

David Bogg (Media)                                +44 (0) 20 7578 4016
david.bogg@benfieldgroup.com

Alison Burgess (Media)                            +44 (0) 20 7578 7047
alison.burgess@benfieldgroup.com

Julianne Jessup (Analysts/Investors)              +44 (0) 20 7578 7425
julianne.jessup@benfieldgroup.com

Notes to Editors

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 operates from 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
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