TIDMBPM
B.P. Marsh & Partners PLC
26 January 2021
Date: 26 January 2021
On behalf of: B.P. Marsh & Partners Plc ("B.P. Marsh", "the
Company" or "the Group")
B.P. Marsh & Partners Plc
Investee Company Update - ATC Insurance Solutions PTY
Limited
B.P. Marsh & Partners Plc (AIM: BPM), the specialist
investor in early-stage financial services businesses, is pleased
to present an update on its investment, ATC Insurance Solutions PTY
Limited ("ATC"), an independent underwriting agency and coverholder
at Lloyd's, headquartered in Melbourne, Australia.
From the time of our investment, through to 31 July 2020, our
valuation of our holding in ATC has risen significantly, increasing
from AU$5.1m to AU$13.6m, an uplift of AU$8.5m (c. GBP4.7m).
Background on ATC
B.P. Marsh invested in ATC in July 2018 with the Company taking
a 20% equity stake in ATC for a total cash consideration of AU$5.1m
(c. GBP2.8m).
ATC is run by a longstanding and experienced management team led
by CEO and Founder, Chris Anderson, alongside Head of Construction,
Plant & Machinery, Shane Sheppard.
Since its establishment in 2006, ATC has grown to become one of
the largest Lloyd's underwriting agencies in Australia. ATC has
extensive experience providing insurance for construction &
engineering, plant & equipment, accident & health, and
sports injury & liability. ATC also provides trade pack
insurance, which contains specialist insurance for electrical and
renewable energy contractors such as public liability insurance,
general property cover, and income protection policies.
ATC currently has capacity arrangements with several Lloyd's
syndicates operating over 12 niche product areas.
B. P. Marsh's Introduction
ATC was a business that B.P. Marsh had been aware of for some
time, and was introduced to the business through the Company's
network of contacts in the insurance market.
Once discussions moved past the exploratory stage, the
transaction completed seamlessly over the course of 8 weeks,
demonstrating not only B. P. Marsh's ability to move quickly, in
view of its insurance specialism, but also the natural investment
fit between B.P. Marsh and ATC.
ATC were looking for a partner who could assist them in bringing
about the next stage of growth and were particularly keen on B.P.
Marsh's insurance expertise and existing investments in the Lloyd's
of London Insurance market, noting that ATC was a Lloyd's
coverholder looking to expand both its capacity and product
offerings.
ATC believed that B.P. Marsh was the right strategic partner to
assist and accelerate the long-term growth of ATC, welcoming our
investment approach, which does not seek to impose exit pressures,
but backs a management team towards an eventual, mutually
beneficial exit route.
Additionally, the Group's appetite for a minority investment
allows ATC's shareholders to retain a significant shareholding,
whilst also allowing a new strategic partner to invest alongside
them.
Growth of ATC
At the time of B.P. Marsh's investment in ATC, the business
reported Gross Written Premium of AU$61m for the year ended 30 June
2018.
Since our investment, ATC has continued to show strong growth,
with Gross Written Premium increasing at a compound annual rate of
34% to the year ended 30 June 2020.
Additionally, notwithstanding the challenges faced in the first
half of 2020, ATC finished its year ended 30 June 2020 reporting an
EBITDA 28% above the 2019 financial year, and substantially ahead
of where it was at the time of our investment.
Over the past 6 months, ATC has also expanded its product
offerings in the Construction and Cyber sectors, and has hired two
new senior underwriters in the cyber field, one based in ATC's
Melbourne office, the other in ATC's Sydney office. Both
underwriters have held senior positions as international cyber
underwriters and will oversee the expansion and development of
ATC's cyber portfolio in their respective regions.
In September 2020, ATC appointed a further plant and machinery
underwriter, based in its Melbourne office. This new role will
oversee the expansion and development of ATC's plant and machinery
portfolio for the eastern Australian states.
Chris Anderson, ATC's CEO, stated:-
"At the time of B.P. Marsh's investment in ATC, I believed that
they were the right strategic partner for us to take ATC forward
through its next phase of growth, a view which has held true during
the time of their investment.
"Since the partnership between ATC and B.P. Marsh, ATC has shown
considerable growth, both in top line Gross Written Premium and
underlying profitability. I believe that ATC will continue its
current growth trajectory, producing excellent returns for all its
stakeholders.
"ATC continues to develop its product offerings to ensure that
it can meet the diverse insurance needs of our expanding client
base. ATC has an experienced underwriting team that ensures its
policies meet clients' needs
and has an in-house claims team to ensure that all claims are dealt with in an expedient manner.
"ATC has always been committed to building long-term
relationships with both its underwriting partners and its broking
clients, seeking to offer flexibility and innovation in developing
policy solutions for a wide range of client risks.
"This business culture has been central to ATC's success since
formation and was something that B.P. Marsh recognised and
supported when they first invested in ATC. "
Commenting, the Group's Chief Investment Officer and Nominee
Director on the Board of ATC, Dan Topping, stated:-
"We are delighted with the success of ATC since our investment
in 2018. This investment is a demonstration of the success of our
modus operandi; when ATC decided the time was right to bring in a
new strategic investment partner, B.P. Marsh was seen as the ideal
strategic fit.
"Whilst ATC has had to operate in challenging environments, the
business has shown strong year-on- year growth since investment,
which is a solid achievement, and B.P. Marsh looks forward to
supporting ATC to achieve further growth in the years to come.
"The increase in valuation of our investment in ATC is testament
to Chris and his team's hard work over the past two and a half
years, and highlights B.P. Marsh's ability to spot opportunities in
early stage insurance businesses and move quickly to secure the
investment."
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE +44 (0)20 7233 3112
Nominated Adviser & Broker
Panmure Gordon
Atholl Tweedie / Charles Leigh-Pemberton
/ Ailsa MacMaster +44 (0)20 7886 2500
Financial PR & Investor Relations
Tavistock bpmarsh@tavistock.co.uk
Simon Hudson / Tim Pearson +44 (0)20 7920 3150
Notes to Editors:
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 approaching ten years.
- Ends -
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