Weak dollar leaves Benfield 7.5% down on profit

by Gill Montia

Story link: Weak dollar leaves Benfield 7.5% down on profit

Benfield Group, the independent reinsurance and risk intermediary, has recorded a 7.5% drop in operating profit for 2007, to £69.3 million, down from £74.9 million in 2006.

Revenue for the year fell by £16.1 million, to £339.2 million, and the group’s trading margin reduced from 21.1% to 20.4%. Net income declined from £38.34 million in 2006, to £36.58 million in 2007.

The company attributed the disappointing results, in part, to the weak dollar and has predicted a further decline for 2008, stating: “The difficult trading conditions of 2007 are likely to continue in the short-term and consequently, absent significant improvement in market conditions, we anticipate the 2008 trading result will be marginally below that for 2007.”

The group’s chief executive, Grahame Chilton, said: “The business faced considerable headwinds in 2007 including adverse currency trends and the softening reinsurance market.”

Adding: “We continued to deliver growth in revenue and trading profit on a constant currency basis.”

Benfield’s customers include many of the world’s major insurance and reinsurance companies, as well as government entities and global corporations.

The company has an international network of more than 45 offices and a presence in major insurance and reinsurance markets.