Venture capital provider BP Marsh has reported improvements in profits and net asset value for the six months to end of July this year, and maintains a positive outlook on the re/insurance market moving forward.
The company reported consolidated profit before tax of £17.0 million for the interim period, compared to £6.2 million for the same period last year, or £19.4 million for the full year in 2021.
Net asset value similarly grew to £179.8 million, up from £155.0 million for the same period last year, and up from the full-year figure of £166.6 million.
BP Marsh completed a new investment into Denison and Partners during the period, provided an additional £2.8 million to XPT Group, and finalised the disposal of its Spanish Broking consolidator, Summa Insurance Brokerage, delivering net cash proceeds of £9.6 million.
However, the firm also acknowledged that EC3 Brokers continues to experience difficulty, and has, out of caution, written this investment down.
While BP Marsh does have concerns about the macro-economic challenges facing the re/insurance sector, including the impact of inflation and increased interest rates, it maintains that the offsetting factors of rising rates should result in a “positive” net impact in the short to medium term.
“I am delighted the Company has achieved such a strong set of results, highlighting the success of our investment strategy. These results are a testament to the hard work that goes on across our team and at all of our investee companies,” said BP Marsh Chairman Brian Marsh.
“Our performance demonstrates the benefits of having a diverse portfolio both by business line and geography and shows that the financial intermediary space continues to have room for young, dynamic entrepreneurial businesses,” he continued.
“Following a series of disposals in the past 12 months, we are actively seeking new investment opportunities to add to our portfolio while further supporting our investee companies fund their growth plans.”
