BFD Benfield Group

RNS Number:3534G
Benfield Group Limited
14 December 2004



14 December 2004



              Benfield Announces Minority Investment in Glacier Re



Benfield Investment Holdings Ltd ("BIHL"), a wholly owned subsidiary of Benfield
Group Limited ("Benfield"), today announced it has invested US$30m for shares in
Glacier Re Holdings s.a r.l, the Luxembourg holding company of the recently
established Swiss-based start-up reinsurance company, Glacier Reinsurance AG ("
Glacier Re").  BIHL will also receive warrants in respect of shares in Glacier
Re Holdings s.a r.l.



Subject to regulatory approval, Glacier Re will commence underwriting on
business attaching 1 January 2005.  It is anticipated that Glacier Re will be
assigned a financial strength rating upon receipt of the reinsurance license
that will enable it to compete in the global reinsurance market.  In addition to
BIHL, the consortium of investors in Glacier Re includes funds advised by HBK
Investments LP ("HBK") and Soros Fund Management LLC.



BIHL's investment in Glacier Re has been made in accordance with Benfield's
strategy of making selective arm's length investments in ventures related to the
insurance and reinsurance industries, which are complementary to its core
reinsurance intermediary business.   The investment has been made by BIHL on the
recommendation of Benfield's Corporate Investment Group ("CIG").  CIG sets
independent financial and other business criteria for external business
investments made by Benfield.  Benfield will not have a representative on
Glacier Re's board of directors.



Grahame Chilton, Chief Executive Officer of Benfield commented, "As a
reinsurance intermediary, it is a key part of our role to access and structure
contingent capital for our customers.  Where it is appropriate we will work with
the capital markets to facilitate the creation of additional reinsurance
capacity to meet our customers' needs.  Benfield's founding investment in
Montpelier Re in December 2001 helped to bring significant new capacity to the
market at a time of considerable uncertainty.  As a matter of good practice, we
will disclose details of our holding in Glacier Re in any transaction where we
propose it as a market to our customers."



Benfield Advisory Inc ("Benfield Advisory"), Benfield's wholly owned specialist
investment banking subsidiary, acted as an advisor to Glacier Re on the
transaction.

                                                                       /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) 207 522 4016
David Haggie                  Haggie Financial              +44 (0) 207 417 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 1,600 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





CIG was established in 2002 as an investment committee to oversee corporate or
non-core investments made by Benfield.  Non-core business includes any
businesses which are not reinsurance or insurance intermediaries or fully owned
by Benfield.  The executive directors who are responsible for Benfield's core
broking divisions do not serve on CIG.



Benfield Advisory is Benfield's wholly owned investment banking subsidiary with
offices in New York and London. Benfield Advisory has a successful track record
in providing private equity advisory, corporate finance, mergers and
acquisitions and fixed income services to companies within the insurance and
reinsurance industry.




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