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Member, Beacon International Group, Ltd.
LONDON--Benfield Group Ltd. recorded revenues of £206.1 million ($374.3 million) in the first half of 2004, up less than 1% over the year-earlier period.
The London-based reinsurance broker said revenue growth was tempered in part by currency fluctuations, noting that revenues rose by 6.9% at constant rates of exchange.
Benfield's pretax profit improved to £113.1 million ($205.4 million) for the first six months of 2004, up from a restated £53.0 million ($88.1 million) for the comparable period in 2003. Contributing to the increase in profits was £26.1 million ($47.4 million) exceptional gain from the sale of holdings in Montpelier Re Holdings Ltd., Benfield said.
Benfield reported its results in accordance with a new accounting standard, Financial Reporting Standard 5, which was introduced in November 2003. Under that standard, brokers must recognize revenues in the period in which business in placed, rather than spreading revenues throughout the year, explained Benfield Chief Financial Officer John Whiter. Under the new standard, about two-thirds of the company's revenues will now be recognized in the first half, he said.
Grahame Chilton, chief executive of the group, said that the broker's revenues from the United States grew 2.3% to £80.7 million ($146.6 million) in the first half of 2004 and that the intermediary intends to pursue further growth in the United States.