Benfield profits up, as is global demand for cat insurance

Benfield Group Limited (“Benfield” or “the Group”), an independent reinsurance and risk intermediary, has reported its group operating revenue has increased 28.5% over the first half of 2006 to 252.1 million (CD$524.6 million).The Group also reported an increase of 35.3% in its profit before taxes. Its 2006 first-half profit was 97.8 million (CD$203.4 million).In a press release, the company highlighted “exceptional new business development and revenue growth” in its U.S. Division. It also noted a “strong performance from [its] international division, with continued expansion of areas targeted for growth.” ” Significant new business has been won by Benfield Corporate Risk, but it is developing more slowly than anticipated in loss-affected markets,” the company announced.Benfield’s chief executive, Grahame Chilton, commented: “We have made significant investment in people across the Group, which has contributed to the excellent results we are announcing today. Market conditions are challenging in loss-affected areas and given this, we have not changed our expectations for the full year despite the exceptional first half.”Across the international reinsurance market, Benfield said it is continuing “to see an increasing demand for catastrophe reinsurance and for specialist peril and financial modeling, as well as alternative solutions that access the capital markets.”Benfield said rates for property catastrophe and casualty reinsurance remain stable or slightly higher in most of the geographical markets covered by its international division, “with the exception of hurricane loss affected areas in Mexico and the Caribbean, where rates were generally up between 30% and 100%.”Capacity remains adequate to meet demand, the company reported, “except in the retrocession market, where rates for marine and non-marine retrocession have increased by more than 100% and continue to move upwards.”