Benfield Grieg, the world's third-largest insurance broker, is likely to redomicile in Bermuda before seeking a listing on the New York Stock Exchange, the Financial Times reported yesterday.

The FT said that 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.

The paper said the attempt could mark a resumption of consolidation in the sector, although insurers and their customers are 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.