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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Benfield Group | BFD | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 349.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 349.00 | 349.00 |
| Top Posts |
|---|
Posted at 13/2/2008 16:46 by williebiz BFD have been seen as a takeover target for the last year or so and John Coldman is not somebody to take the fall in share price lightly (see the share buyback prog)... TU profit warningLONDON (ShareCast) - Reinsurance broker Benfield has warned the weak dollar will mean trading profit this year coming in below previous indications while the outlook for 2008 is also uncertain. Benfield had already flagged problems with weakness of the US dollar and a softening of the reinsurance market. "The impact of these two factors, particularly the further weakening of the dollar, has continued in the second half of the year. Consequently, the board now estimates that reported trading profit for 2007 will be marginally lower than previously indicated, subject to expectations on business streams in the final quarter of 2007 being met," it said. The outlook for 2008 is again likely to be affected by the weak dollar, it also said, adding that with reinsurance capacity ample in most markets and in the absence of significant global reinsurance losses, Benfield anticipates further softening of rates over the next twelve months. The downbeat trading comments overshadowed news of £150m share buyback programme over the next two years and a new debt facility of up to £300m. Warren Buffett's Berkshire Hathaway stoked interest in the reinsurance sector by buying NRG, ING's reinsurance unit, albeit at a 100 million discount to its value on ING's books. Benfield Group, the reinsurance broker seen as a potential predator for Aon, of the United States, edged up 1¾p to 284½p despite a downgrade from Numis, which cut its target price to 245p and its 2008 earnings forecasts by 12 per cent. Benfield, the reinsurance broker, fell another 13p to 272¼p as ABN Amro, which had stoked recent bid speculation, cut it from "buy" to "hold" following its profit warning last week. Benfield Group 297¼p -6¾ Questor says Sell There was disappointment all round when Benfield Group, the world's largest independent reinsurance broker, announce a major share buy-back yesterday. As it pledged to repurchase up to £150m of stock over the next couple of years, the shares tumbled - and understandably so. Further into its statement was a warning that its profit estimates for 2007 will be "marginally lower than previously indicated". Benfield generates 42pc of its revenues from the US, so it should come as no surprise that the weak US dollar has taken its toll. In a double whammy, the group has also been hit by falling insurance premiums. Benfield has arranged a new £300m debt facility to repay its existing debt and to fund the repurchasing strategy; something it likes, having finished a similar scheme earlier this year. Although the share buy-back plan is designed to help support the shares, it has also dashed bid hopes. This means the FTSE 250 group cannot be in takeover talks - market rumours were that it was in discussions with rival broker Aon. With a yield of just 4pc, there seems to be little incentive to hold the shares. Of course, takeover rumours could yet come true - Goldman Sach's private equity arm is understood to have looked at taking the group private a few months ago - but that deal apparently failed due to financing difficulties. A sudden pause in the share buy-back programme would be a key indicator if an approach does emerge, but until then the shares don't deserve to trade at a premium to the sector. Benfield Group After a month in which speculation of a bid from Aon, of the United States, has helped shares in Benfield to rise 18 per cent, the attention of investors in the mid-cap insurance broker was returned to more mundane matters yesterday. The £700 million company cautioned that a further weakening of the US dollar since September's interim results and subdued trading would mean that this year's reported trading profits will be "marginally lower" than previously indicated. Benfield's bind is that it draws three quarters of its sales in US dollars, but, through its presence in the London market, has substantial costs in sterling. Its other problem is that while falling reinsurance rates can be good for business - by stimulating demand, transaction volumes and Benfield's commission income - rates so far have not fallen far enough or fast enough to tempt insurers to lay off more of their risk through the reinsurance market. Benfield expects rates to fall further over the next 12 months, but forecasting at what point insurers might buy reinsurance more heavily is a hazardous business. The sweetener for investors is that Benfield has agreed a new debt facility of up to £300 million, which gives it scope for a £150 million share buyback over the next two years, its third since floating four years ago. Yet although that leverage brings Benfield's balance sheet more into line with its peers, the benefits of fewer shares in issue can be easily offset by the higher cost of debt. Benfield does best in the wake of big insurance losses, but, in more normal times, the shares, at 297¼p, or 17 times next year's earnings, are likely to languish. No more than a hold. Speculation that Benfield, the reinsurance broker, could be subject to a bid from rival US giant Aon helped it to buck a falling market. Benfield rose 2¾p to 281¾p after ABN Amro's Joanna Parsons said that a takeover by the US rival would make it the largest broker in the world, overtaking arch rival Marsh. "In our view Benfield has reached optimum size and is currently struggling against the dollar/sterling exchange rate and constrained resinurance demand," she said. In recent months US fund managers such as Harris, Artisan, Deccan and Tradewinds have been buying stock, and they know Aon well, she said. |
Posted at 26/6/2007 07:19 by polzeath The biggest riser in the FTSE 250 was Benfield Group. The insurance broker enjoyed a much needed bounce after US investment group Artisan Partners added to its stake, lifting its holding to 22.9m shares, or 10.2pc of the equity. It is holding the stock on behalf of a number of investors, including State Street Nominees and Mellon Trust.Artisan Partners is perhaps best known in recent months for accusing Countrywide management of attempting to take the estate agency business private on the cheap. Its refusal to accept a £940m bid for the group eventually led to a higher £1bn-plus offer being made for the company. Benfield, which was trading at a year low, improved 15½ to 320¼p. |
Posted at 25/6/2007 13:11 by polzeath Artisan top up holding again (see RNS).Artisan Partners Limited Partnership 22,884,234 £71,398,810 (old - now more like 23.1m shares) Deccan Value Advisors L.P 14,066,000 £43,885,920 Harris Associates LP 11,789,000 £36,781,680 FMR Corp 10,587,900 £33,034,248 Henderson Global Investors Limited 6,815,375 £21,263,970 So the big guys hold 25% of the share capital. I feel a bid is on the horizon, BFD must be the most wanted 'insurance' co out there yet trading at a 2 year low. Trust me, I get a funny feeling about these things :-) Coldman not the kind of guy who likes being undervalued by the market. |
Posted at 23/5/2007 12:10 by lex1000 Charts one of a number of tools.Read into them what you like and fundementals.Ultimat |
Posted at 23/5/2007 07:24 by polzeath Another day, another strategic holding. Fidelity joins the others who are positioning themselves for BFD getting taken over.Artisan Partners Limited Partnership 21,312,118 £66,920,053 Deccan Value Advisors L.P 14,066,000 £44,167,241 Harris Associates LP 11,789,000 £37,017,461 FMR Corp 10,587,900 £33,246,007 Henderson Global Investors Limited 6,815,375 £21,400,278 Benfield Group Limited 22 May 2007 22 May 2007 Holding(s) in Company NOTIFICIATION OF MAJOR INTEREST IN SHARES The Company has today, 22 May 2007, been notified that Fidelity FMR Corp has an interest in the voting rights of 10,587,900 Common Shares of 1p each in Benfield Group Limited, representing 4.70% of the issued share capital of 224,993,847 Common Shares of 1p each of the Company. |
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