UK reinsurance broker Benfield Group Ltd., which moved its headquarters to Bermuda last year, has announced it is to float on the London Stock Exchange (LSE) in a bid to raise ?100 million ($163.7 million).

The company, which is the world's third largest reinsurance broker, had originally been considering an initial public offering in the US, but changed its mind due to changes in the regulatory environment there.

The cash-raising measure will be used to bolster growth and reduce debt, the company said in its announcement.

The company will list on the LSE with an indicative price range of 200 pence to 260 pence ($3.27 to $4.25) per common share.

That would give it a market value of between ?500 million and ?660 million ($818 million and $1.1 billion), putting it into the FTSE 250 index.

An institutional roadshow began yesterday with dealing in the shares expected to start on June 18.

Merrill Lynch & Co. and Morgan Stanley are joint-bookrunners on the deal and are advising Benfield.

In a statement last year announcing its intention to float, Benfield said the capital raised will provide it with "additional financial flexibility."

Benfield relocated to Bermuda in October, initially to give the board the choice of considering an initial public offering in the US or in the UK.