In addition to BIHL, the consortium of investors in Glacier Re includes funds advised by HBK Investments LP and Soros Fund Management LLC.

BIHL's investment in Glacier Re has been made in accordance with Benfield's strategy of initiating selective arm's-length investments in ventures related to the insurance and reinsurance industries, which are complementary to its core reinsurance intermediary business, the company said.

The BIHL investment was made on the recommendation of Benfield's Corporate Investment Group, which sets independent financial and other business criteria for external business investments made by Benfield.

Benfield said it will not have a representative on Glacier Re's board of directors.

"As a reinsurance intermediary, it is a key part of our role to access and structure contingent capital for our customers," said Grahame Chilton, chief executive officer of Benfield. "Where it is appropriate we will work with the capital markets to facilitate the creation of additional reinsurance capacity to meet our customers' needs.

According to Benfield, its founding investment in Montpelier Re in December 2001 helped bring significant new capacity to the market at a time of considerable uncertainty.

Benfield said, "As a matter of good practice, we will disclose details of our holding in Glacier Re in any transaction where we propose it as a market to our customers."

Benfield Advisory Inc., Benfield's wholly-owned specialist investment banking subsidiary, acted as an advisor to Glacier Re on the transaction.