London-based insurance broker Benfield Group Ltd. reported income for the first six months dropped 7 percent compared to the period last year on a revenue decrease of 4 percent during the period.
"As expected, adverse trends in reinsurance and insurance pricing continued in the first half of the year," Grahame Chilton, Benfield's chief executive, said in a statement.
"Despite this, the international division produced an excellent result and Benfield Corporate Risk maintained its strong new business growth.," he said. "We have made good progress with our cost savings initiative and continue to expect our reported trading result for the full year to be marginally below that achieved in 2007."
Benfield reported income of ?58 million (U.S. $113 million at the current exchange rate) off ?4.5 million ($8.8 million) from the same period last year. Revenues were down 4 percent, or ?10 million ($19 million), to ?234 million ($453 million).
Of the operating segments, the international division demonstrated continued growth but United States business was sluggish, falling 17 percent for the first half of the year. Benfield Corporate Risk grew revenue by 30 percent, the company said.
Management remains focused on cost control, decreasing operating expenses 5 percent, or ?7 million ($14 million), to ?134 million ($260 million), the brokerage said.
Reinsurance rates are continuing to fall, Benfield noted, and have yet to reach a level that "encourages significant additional reinsurance purchasing."
The firm said it has expanded its Latin America presences by opening a new office in Puerto Rico, and revenues are continuing to grow.
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