Shares in Benfield fell another...
Shares in Benfield fell another 6p in early trading to 343p.
The company stock price took a battering earlier this week, falling from a high of 377p, after a profits warning.
The reinsurer was dealt a massive blow when it was announced that senior staff at its Facultative Solutions reinsurance division were resigning to join rival Aon. Reports said 20 had left and a further 80 were ready to go.
On Monday, the company exacerbated traders fears announcing that trading profits for the year will be £10m down on previous estimates of between £90m and £100m.
Analysts Keefe, Bruyette & Woods, said: “Benfield's profits warning highlights our concern that the growth strategy launched last year is not without risks. We have long warned that the market was paying too high a multiple for what may be a tougher and higher risk strategy than superficially seemed the case last year."
Meanwhile, shares in motor intermediary Highway inched up to 63p.
The stock is being accumulated by sources close to the company.
The wife of chairman Richard Gamble and company deputy chairman Peter Salisbuy have both purchased 50,000 shares at a cost of £30,000.
Director Paul Nigel Cosh has also bought two large blocks of shares up – totalling almost £109,000.
Yesterday, investment heavyweight UBS AG put an order in for a holding – taking its total to over 8.1m shares or just over 4% of the total.
One market source said the buying was likely due to the shares being considered a “bargain” with the price having been over 90p only six months ago.
