Independent reinsurance intermediary Benfield has announced plans to see its entitlement to 2.39 million shares in Bermuda-based Montpelier Re.
Benfield said it would receive gross proceeds of $54m from the sale of the shares to Fund American Reinsurance Company Ltd, a unit of the White Mountains Insurance Group.
Benfield chief executive officer Grahame Chilton said the move was in line with the company’s policy on retaining a focus on its core intermediary business.
Once the transaction is completed, Benfield will hold 552,521 shares in Montpelier Re.
In July 2003, Benfield raised net proceeds of $27.7m from the disposal of 947,479 shares in Montpelier Re. Benfield’s initial total investment in the reinsurer was $25m, it said.
