Benfield Group Plc, a UK reinsurance broker that raised capital in an initial share sale in June, said full-year profit jumped as margins widened at its US business. Benfield has a Bermuda office.

Net income rose to ?15.2 million ($27.5 million) in 2003, from ?1.5 million, the London-based company said in a Regulatory News Service statement. Benfield?s US business trading margin improved to 31.9 percent, from 19.1 percent.

?We expect further good growth in the US during 2004 and some progress in the international division, which continues to be affected by market conditions in certain specialty classes,? chief executive Grahame Chilton said in a conference call with journalists.

Benfield raised ?157 million in an initial public offering last year. Over the past six months, Benfield shares have fallen 13.1 percent, making them the worst performing stock on the seven-member FTSE 350 Insurance Index, which slipped 0.4 percent over the same period.

Benfield specialises in helping insurers find protection for risks ranging from kidnapping to satellite cover. The company was founded in 1973 and has expanded in South America, Asia and the Pacific Rim and has opened offices in China, Russia and Turkey, Chilton said.

Reinsurance brokers typically gain fees from clients for advice and for spreading coverage among many underwriters, to help provide protection from unusual or very large risks such as catastrophe insurance against floods, fires and storms.

Margins in the US were aided by ?flat? costs and revenue growth, said Chilton in a conference call with journalists. The US trading result rose 74.6 percent to ?40.2 million from ?17.2 million, the company said.

The company will pay a final dividend of six pence a share, the statement said.

This year, Benfield?s results will be boosted by an exceptional gain from selling $54 million of warrants of Montpelier Re Holdings announced by the company last week, Chilton said. In addition to $27.7 million it raised by selling Montpelier shares in July, Benfield has tripled its return on investment in the Bermudan reinsurance company.

Though premiums have declined in property catastrophe insurance by as much as 5 percent last year, ?people tend to sell more policies in a falling market,? Chilton said.

The company may buy small companies or teams of people, Chilton said.