One of the world's largest privately owned reinsurance brokers, The Benfield Group, is setting up an office in Bermuda.

An advertisement in The Royal Gazette yesterday was seeking the services of a receptionist and executive assistant for a small team of reinsurance brokers for Benfield Grieg (Bermuda) Ltd.

Media speculation in recent months has labelled the Benfield Group as a possible candidate to re-domicile in Bermuda.

Last month, UK-based Financial Times reported Benfield Grieg was likely to re-domicile in Bermuda before seeking a public listing in on the New York Stock Exchange.

The FT said Marsh, the world's biggest insurance broker, had tried to buy London-based Benfield for $1 billion, but was unsuccessful after it lowered its bid.

Benfield Group, however, released a statement before the FT article which said: "In light of recent press speculation, the Board of Benfield Group plc. wishes to confirm that it is not in discussions with any third party at the current time in relation to a possible offer for the Company. Furthermore, the Board also wishes to confirm that no third party has undertaken due diligence on the Company in relation to a possible offer."

The FT said the attempted buy-out could mark a resumption of consolidation in the sector, although insurers and their customers were not enthusiastic about the declining number of players.

Marsh and Aon, which both have operations in Bermuda, earn 76 percent of the revenues of the world's 10 largest insurance brokers.

In mid-May, the UK Post Magazine reported that Benfield Grieg was considering moving to Bermuda in a run-up to the company's flotation in the US.

The Post quoted market sources close Benfield and also spoke to Benfield Greig chief executive Grahame Chilton who would not be drawn on either subject, but was quoted as saying: "It is still probably the intention of Benfield to re-domicile to Bermuda, but I can't say any more than that. I can't confirm or deny that we are."

The article reported that earlier this year, the company was in talks with US investment bank Morgan Stanley about a $1.4 billion initial public offering on the NYSE in the first half of 2002.

The move, if carried out, echoes that of former UK-domiciled broker Willis, which raised $270m after a US IPO in June last year and moved its domicile to Bermuda in the process.

Bermuda-based Willis Group Holdings Ltd., is the world's third largest insurance broker and re-domiciled in Bermuda in April 2001.

Benfield Greig was also a founding shareholder of Montpelier Re, which was set up in Bermuda in the wake of the September terrorist attacks.

Efforts to contact Benfield Grieg headquarters in London yesterday were unsuccessful, as were efforts to contact the Group's media contacts in the US.

Benfield Group plc is one of the leading reinsurance intermediaries in the world. Headquartered in the UK, it provides a range of specialist reinsurance, insurance and risk advisory services to a global customer base.

In May 2001 the Group acquired US reinsurance broker EW Blanch, one of the leading US integrated risk management and distribution service providers and the combined company became the third largest reinsurance intermediary in the world, with pro forma revenues of $410 million in 2000 and a truly global presence established through more than 30 offices worldwide and over 1,700 employees.

The combined Group's US operations have been renamed Benfield Blanch Inc. and the UK-based holding company has been renamed Benfield Group plc. Benfield Greig Limited remains the trading name for the reinsurance broking operation outside of the US.

The Group also owns a number of non-reinsurance businesses. Amongst these, Benfield Sports International provides consultancy services in sports sponsorship and event management, specialising in motor sport, while Wildnet New Media Group specialises in the creation, marketing and management of interactive trading websites.