Investee Company Update - XPT Group LLC

RNS Number : 5350N

B.P. Marsh & Partners PLC

18 January 2019

 

Date:                18 January 2019

On behalf of:    B.P. Marsh & Partners Plc ("B.P. Marsh", the "Company" or the "Group")

B.P. Marsh & Partners Plc

Investee Company Update - XPT Group LLC

B.P. Marsh & Partners Plc (AIM:  BPM), the niche venture capital provider to early stage financial services businesses, is pleased to announce that XPT Group LLC ("XPT"), in which the Group owns a 35% shareholding, has acquired 100% of a New York City based MGA and Lloyd's Coverholder, SVA Underwriting Services Inc ("SVA").

SVA was founded in August 2013 by its President, Steven Vallejo. SVA specialises in Physical Damage and Cargo cover for the Trucking Insurance sector and will provide geographic expansion for XPT into the Northeast and Midwest.

As part of the acquisition, the Company agreed to provide XPT with further funding of $3,220,000 (c. £2,500,000) by way of newly issued redeemable preference shares.

XPT's acquisition of SVA is its third since it was established in June 2017. The acquisition of Western Security Surplus Insurance Brokers, Inc. ("WSS") was announced by the Group in November 2017 and the acquisition of trucking specialist WE Love & Associates, Inc ("WE Love") in January 2018.

As per XPT's two previous acquisitions, the purchase of SVA is part of XPT's plan to develop a wholesale insurance broking and underwriting agency platform across the U.S. Specialty Insurance Sector. This acquisition continues to demonstrate that XPT can take advantage of the consolidation opportunities in the small-to-medium-sized wholesale space in the U.S. while adding operational expertise to organically grow the businesses at high rates.

Dan Topping, B.P. Marsh's Chief Investment Officer and the Company's representative at XPT, commented: "We are delighted that XPT has undertaken its third acquisition with the conclusion of the deal with SVA. This acquisition, alongside the previous two, embodies what XPT is doing to develop its synergistic presence in the U.S. specialty insurance market".   

Commenting on the acquisition, XPT's CEO Tom Ruggieri stated: "Steven Vallejo's expertise in trucking and his business, SVA, is a perfect complement to our Trucking business increasing our specialisation in Physical Damage and Cargo coverages while supporting Retail Agencies in new geographies. Furthermore, his long-term profitable relationship with the London market strengthens our product portfolio".

For further information:

B.P. Marsh & Partners Plc                                                              www.bpmarsh.co.uk

Brian Marsh OBE / Camilla Kenyon                                                  [phone]

Nominated Adviser & Broker

Panmure Gordon

Atholl Tweedie / Charles Leigh-Pemberton                                       [phone]

About B.P. Marsh & Partners Plc

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

Since formation over 25 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 at least five years.

Prior to Brian Marsh's involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd's as well as the London and overseas market. He has over 30 years' experience in building, buying and selling financial services businesses, particularly in the insurance sector.

Alice Foulk joined B.P. Marsh in September 2011 having started her career at a leading Life Assurance company. In 2014 she took over as Executive Assistant to the Chairman, running the Chairman's Office and established herself as a central part of the management team.

In February 2015 she was appointed as a Director of B.P. Marsh and a member of the Investment Committee. In January 2016 Alice was appointed Managing Director of B.P. Marsh.

In her position as Managing Director, Alice is responsible for the overall performance of the Company and monitoring the Company's overall progress towards achieving the objectives and goals of the Company, as set by the Board.

Dan Topping is the Chief Investment Officer of B.P. Marsh, having been appointed as a Director in 2011. He joined the Company in February 2007, following two years at an independent London accountancy practice. Dan is the Senior Executive with overall responsibility for the portfolio and investment strategy of B.P. Marsh.

Dan graduated from the University of Durham in 2005 and is a member of the Securities and Investment Institute and the Institute of Chartered Secretaries and Administrators.

Dan is a standing member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director across the portfolio.

Camilla Kenyon (Millie) was appointed to the main Board in 2011, following her appointment as Head of Investor Relations in 2009. She has dual responsibilities within the Group, running both Investor Relations and the New Business Department and is Chair of the New Business Committee evaluating new investment opportunities.

Millie is nominee director in one investee company and is a member of the Investment Committee. She has over 20 years of experience in the financial services industry, including numerous Board appointments and is a Member of the Investor Relations Society.

Jonathan Newman is a Chartered Management Accountant and is the Group Director of Finance and has over 20 years' experience in the financial services industry. Jon graduated from the University of Sheffield with an honours degree in Business Studies and joined the Group in November 1999, following two years at Euler Trade Indemnity and two years at a Chartered Accountants. Jon is a Member of the Chartered Global Management Accountants, the Chartered Management Accountants and the Chartered Institute of Securities and Investment.

Jon was appointed a Director of B.P. Marsh & Company Limited in September 2001, and Group Finance Director in December 2003 and was instrumental in the admission of the Group to AIM in February 2006. Jon is a member of the B.P. Marsh Investment and Valuation Committees and currently serves as a Board Director for Walsingham Motor Insurance Limited, and provides senior financial support and advice to all companies within the Group's portfolio as well as evaluating new investment opportunities.

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