Investee Company Update

RNS Number : 5809A

B.P. Marsh & Partners PLC

12 September 2018

 

Date:                            12^th September 2018               

On behalf of:                 B.P. Marsh & Partners Plc

Immediate release

B.P. Marsh & Partners Plc

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

Investee Company Update - Nexus Underwriting Management Limited

B.P. Marsh & Partners Plc (AIM:  BPM), the niche venture capital provider to early stage financial services businesses, is pleased to note that its investee company Nexus Underwriting Management Limited ("Nexus"), in which it holds a 17.2% shareholding, has announced that it has completed the acquisitions of Huntington Underwriting Limited ("Huntington") on 6 September 2018 and Altitude Risk Partners LLP ("Altitude") on 7 September 2018.

Altitude Risk Partners LLP

Founded in 2014, Altitude is a specialist aviation Managing General Agency ("MGA") based in London, co-founded by David Godley, Tim Wright and Richard Power. Nexus purchased Altitude via an asset purchase from Castel Underwriting Agencies. Altitude has become a trading division of Nexus Underwriting Limited. Altitude underwrites a portfolio of seven lines of aerospace insurance across 130 territories.

Prior to co-founding Altitude, David Godley held a number of senior positions at Global Aerospace and has over 20 years' experience in the sector. Tim Wright  has over 27 years' experience as a specialist aerospace underwriter, having previously worked at Aon and Global Aerospace, before co-founding Altitude. Richard Power has numerous years' experience as an underwriter, having previously worked at Catlin Insurance Company Limited, Starr Underwriting Agents and Global Aerospace Underwriting Managers Ltd.

For the year ending 31 December 2018 Altitude is forecasting Gross Written Premium Income in excess of $80m.

Colin Thompson, Founder and Group CEO of Nexus has commented: "This is an evolutionary acquisition for Nexus, augmenting our 'virtual insurer' model by adding Aviation and Space, two highly specialised classes of business to our existing 12 classes. Now is an excellent time for us to be buying an Aerospace MGA, with capacity being withdrawn, rates hardening, improving safety standards and increased focus on underwriting profitability across the market."

Huntington Underwriting Limited

Huntington is a structured solutions MGA based in Malaysia's Labuan International Business and Financial Centre. Huntington offer tailored, non-traditional (re)insurance programmes that manage the volatility in groups of risks, over several years, incorporating aggregate limits of liability and rewarding underwriting profitability.

Huntington has been in operation since 2014 and will continue to be run by its founders, Gerard Pennefather and Anthony Egerton as Chairman and Managing Director respectively. Colin Thompson, Mike Sibthorpe and Stuart Rouse, members of Nexus senior management team, will be appointed to Huntington's Board, subject to regulatory approvals. Huntington will be renamed Nexus Structured Solutions, forming part of the wider Nexus Group.

Gerard Pennefather has more than 35 years' experience in insurance, corporate finance, banking and consultancy. Anthony Egerton has many decades experience in (re)insurance and structured finance, including as President of Asia-Pacific, Lloyd's of London, based in Singapore.

Colin Thompson, Founder and Group CEO of Nexus, has commented: "Following the acquisition of Huntington, the Nexus Group now has an Asian presence in Hong Kong and Malaysia. This strengthens our offering to local brokers and markets as we continue to focus on Asian strategic initiatives, while moving us closer to our ambition of becoming the largest MGA in Asia over the next three years."

Daniel Topping, B.P. Marsh's Chief Investment Officer and the Company's nominee director on the Board of Nexus, commented; "This is another pleasing step in Nexus' growth trajectory, further developing their product offering and geographical footprint via value accretive M&A activity, which has served them well since our investment, as demonstrated by the enviable growth."

As a result of these two transactions, the Nexus Group estimates that, for the year ending 31 December 2018, the business will write total Gross Written Premium of $350m across 15 specialty classes of business, and return income of £41m and EBITDA of £15m. Nexus continues its M&A growth strategy, continues to target three acquisitions per annum and has completed 12 acquisitions in total.

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 / Sandra Bjork / Charles Leigh-Pemberton                    [phone]

Notes to Editors:

About B.P. Marsh & Partners Plc

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 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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