DIRECTORS and employees of Benfield yesterday took advantage of investor demand for insurers untarnished by Eliot Spitzer’s market-rigging inquiry, selling £38 million of stock.

Although Grahame Chilton, the chief executive, held on to his 9 per cent stake in the reinsurance broker, other directors, including Rod Fox, head of the US business, sold £14 million of shares on the first day that they were able to do so after the stock market listing in June last year.

General Electric also decided to capitalise on investor appetite for the shares and sold £43 million of shares at 265p each.

Shares in Benfield fell ¾p to 270¼p.

Mr Fox sold 25 per cent of his stake in the company for just under £6 million, while John Coldman, Benfield’s chairman, sold just under £2 million worth of shares.

Last December Benfield directors sold a further £1 million of stock.

Benfield arranges reinsurance programmes for insurers, so does not have direct contact with insurance buyers from companies. This has enabled it largely to divorce itself from criticism by Mr Spitzer, the New York attorney-general, who has threatened to sue large insurance brokers for misleading buyers for their own gain.

Barrie Cornes, insurance analyst at Cheuvreux, the stockbroking arm of Crédit Agricole, said: “Benfield is an insurance broker so its shares give you exposure to the sector but well away from the troubles that have affected primary insurance brokers.”

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