Investee Company Update

RNS Number : 8730K

B.P. Marsh & Partners PLC

06 September 2021

 

6 September 2021

B.P. Marsh & Partners Plc

("B.P. Marsh", "the Company" or "the Group")

 

Investee Company Update - The Fiducia MGA Company Limited

B.P. Marsh & Partners Plc (AIM: BPM), the specialist investor in early stage financial services businesses, is pleased to present an update on one of its investments, The Fiducia MGA Company Limited ("Fiducia").

Background on investment

B.P. Marsh originally invested in Fiducia, a start-up UK Marine Cargo Underwriting Agency, in November 2016, subscribing for an initial 25% shareholding for a total consideration of £75,000, alongside a loan facility of £1,725,000.

Since investment, B.P. Marsh has provided Fiducia with additional funding, both via equity and loan, allowing the business to develop over time, taking advantage of growth opportunities.

This strategy has seen Fiducia develop new facilities across several markets, including Marine Trades, Terrorism, Engineering, Fine Art and Specie and Marine Equipment.

For the year ending 31 December 2020, Fiducia underwrote total insurance premiums of £17.4m, this is budgeted to increase by in excess of 30% for the 2021 financial year.

B.P. Marsh had provided Fiducia with a total equity investment of £228,000, and now holds a 35.2% shareholding. As at 31 January 2021, this shareholding was valued at £3.3m, which marks a significant increase of 1,354% over the amount invested in the five years since Fiducia was launched.

Berkshire Hathaway Specialty Insurance

Over the past year, Fiducia has developed a commercial relationship with Berkshire Hathaway Specialty Insurance ("BHSI").

In 2021, BHSI became the new lead insurer on Fiducia's UK Cargo and Freight facility. A number of other A rated insurers sit behind BHSI on this facility.

BHSI was formed in 2013 and provides commercial insurance products for customers worldwide with offices in the United States, Asia Middle East, Australasia, Canada, United Kingdom and Europe and has a financial strength rating of AA+ (Rating Agency - Standard and Poor's).

Gerry Sheehy, Fiducia's Chief Executive Officer, stated:

"As we look forward to the years ahead, Fiducia's message remains the same, being that our door remains very much open to brokers who are looking for a market that can deliver quality and financially strong products, with a market-leading level of service, backed by credible capacity partners."  

Commenting, the Group's Chief Investment Officer and Nominee Director on the Board of Fiducia, Dan Topping, said:

"B.P. Marsh remains very pleased with how Fiducia has performed since our investment in 2016, with Fiducia on track to achieve its budget in 2021. This is an excellent achievement, especially given the additional challenges for those in the UK insurance market over the last few years.

B.P. Marsh looks forward to working with Fiducia in the future as they continue on this growth trajectory."

This is a non-regulatory announcement.

For further information:

B.P. Marsh & Partners Plc	www.bpmarsh.co.uk
Brian Marsh OBE	[phone]
Nominated Adviser & Broker Panmure Gordon
Atholl Tweedie / Charles Leigh-Pemberton / Ailsa MacMaster	[phone]
Financial PR & Investor Relations
Tavistock	[e-mail]
Simon Hudson / Tim Pearson	[phone]

Notes to Editors:

B.P. Marsh's current portfolio contains seventeen companies. More detailed descriptions of the portfolio can be found at  www.bpmarsh.co.uk .

Since formation over 30 years ago, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for approaching ten years.

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