Reinsurance News

B.P. Marsh’s profit falls, but NAV up 3%

15th October 2019 - Author: Luke Gallin

Specialist private equity investor B.P. Marsh & Partners Plc (B.P. Marsh) has announced profit after tax of £5.6 million for the six months to July 31st 2019, compared with £6.3 million for the same period in 2018.

bp-marsh-and-partners-logoB.P. Marsh has released its unaudited results for the six month period ending July 31st, 2019, which shows that during the period, the firm’s net asset value (NAV) totalled £130 million, which is up 3% when compared with the £120 million at the end of July 2018, and slightly above the £126.2 million as at the 31st of January, 2019.

NAV per share for the six month period in 2019 reached 361p, which compares to 333p at the end of July 2018 and 350p as at 31st of January, 2019.

Overall, B.P. Marsh recorded 4% growth in the equity value of its portfolio in the six month period.

The firm’s Chairman, Brian Marsh, commented: “B.P. Marsh has continued its long track record of delivering NAV growth from its diverse portfolio of investments, despite specific challenges. As a leading specialist investor in global financial services intermediaries and with 50% of our investment portfolio revenues emanating from outside of the UK, the outlook for the rest of the financial year is positive.”

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Somewhat impacting the portolfio in the period, according to Marsh, is the fact that LEBC Group Limited, an Independent Financial Advisory company which B.P. Marsh holds an investment, ceased the provision of defined benefit pension transfer advice following a market-wide review by the FCA.

As a result, the firm has lowered its valuation of its holding in LEBC Group. However, thanks to a strong result elsewhere in the portfolio B.P. Marsh says that it is still aiming to finish the year with a satisfactory position in terms of NAV.

Other key developments for the period include the completion of the fourth acquisition by New York-based XPT Group LLC, and, post period-end, the firm’s successful raise of $40 million in aggregate in funding and its fifth acquisition. Nexus Underwriting Management Limited secured a further £16 million in new loan facilities and completed the acquisitions of a trade credit broker and a London domiciled financial and professional lines MGA.

Furthermore, B.P. Marsh also secured a new investment in Ag Guard Pty Limited, which provides insurance solutions for the Australian agriculture sector, with insurance capacity provided by reinsurance giant Munich Re.

B.P. Marsh’s cash balance as at the end of July 2019 totalled £1.4 million and during the six month period, the company entered into a £3 million loan facility, provided by Brian Marsh Enterprises Limited, of which Chairman Marsh is a director and sole shareholder.

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