TIDMBPM
RNS Number : 4813L
B.P. Marsh & Partners PLC
19 July 2017
Date: 19(th) July 2017
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 an 18.6%
shareholding, has announced that it has completed the acquisition
of Zon Re Accident Reinsurance ("Zon Re"), a U.S. based Reinsurance
Underwriting Agency. In 2016 Zon Re produced a Gross Written
Premium of $14.3m, revenue of $3.77m and EBITDA of $2.69m. This
acquisition was funded via a proportion of the previously announced
GBP30m loan facility provided by the Company and HPS Capital
Partners.
Zon Re has partnered with the largest and most respected
insurance companies in the U.S., being Zurich, Liberty Mutual and
Federal Insurance Company (Chubb & Son). Zon Re currently
oversees a portfolio of approximately $15m in Gross Written Premium
and has an average historical combined ratio of 68% delivering over
$77m in underwriting profit to risk partners over the past 12
years.
Zon Re is a management owned Reinsurance Underwriting Manager
founded in 2003 and is run by Kieron Farrelly (Executive Vice
President and Chief Underwriter), Chris Holland (Vice President and
Senior Underwriter) and Vern Ismen (Senior Vice President and
Compliance, Claims and Contracts).
Zon Re offers domestic and international reinsurance capacity in
the accident reinsurance space, specifically for primary life,
property & casualty and accident & health. This
acquisition, based in New Jersey, is Nexus's first in the U.S., and
adds Treaty Reinsurance as a new class within Nexus' business
offering.
Nexus underwrites a number of specialty products on behalf of
underwriting partners that support its product offerings within the
following lines of business: financial lines, trade credit,
accident & health, surety, travel, property, latent defect,
marine and cyber. This is the third and final of three currently
planned acquisitions from Nexus, the first two being the marine
cargo specialist Vectura Underwriting and the trade credit
specialist Equinox Global, as has been reported by the Company over
the past couple of weeks.
These acquisitions will increase Nexus's financial forecasts for
2017 as follows: Gross Written Premium will increase to a forecast
of GBP160m, commission income to a forecast of GBP30m and EBITDA to
a forecast in excess of GBP11m.
By way of background, since the Company's investment in 2014,
Nexus has grown its Gross Written Premium income from GBP56m in
2014 (2017F: GBP160m), a forecast increase of 185%. In the same
period, commission income has increased from GBP12.3m (2017F;
GBP30m), a forecast increase of 143%, and EBITDA has increased from
GBP2.6m (2017F: GBP11m), a forecast increase of 323%.
Nexus's Chairman Colin Thompson stated; "Following on from the
successful conclusion of Nexus's capital raising process last week,
Zon Re fits the model of profitable, proven, niche MGAs, that we
plan to target with our "buy and build" strategy, which will
deliver significant EBITDA and value to the Nexus group.
This is the third acquisition Nexus have exchanged on or
completed in the past month, following the purchase of Equinox
Global last week and Vectura Underwriting at the end of June. These
acquisitions cement Nexus's position as a multi-product,
multi-class, multi-geographic 'virtual' insurance company."
Daniel Topping, B.P. Marsh's Chief Investment Officer and the
Company's nominee director on the Board of Nexus commented; "B.P.
Marsh is pleased to see this round of M&A activity concluded,
having provided the Loan Facility, alongside HPS Capital Partners,
for these acquisitions to take place. From a revenue and
profitability standpoint these acquisitions should prove to be
transformational and we look forward to integrating them into
Nexus's existing business".
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE / Camilla Kenyon +44 (0)20 7233 3112
Nominated Adviser & Broker
Panmure Gordon
Atholl Tweedie / Adam James / Charles Leigh-Pemberton +44 (0)20 7886 2500
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains fourteen 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 was appointed as Head of Investor Relations at
B.P. Marsh in February 2009, having four years' prior experience
with the Company. She was appointed to the main board in 2011.
Camilla is Chair of the New Business Committee evaluating new
investment opportunities. She has a number of nominee directorships
over two investee companies and is a standing member of the
Investment Committee. She 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 17 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.
'ends'
This information is provided by RNS
The company news service from the London Stock Exchange
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