Venture capital provider B.P. Marsh has reported Net Asset Value (NAV) of £179.8 million for 31 July 2022, compared to £166.6 million at 31 January 2022.
In a statement, B.P. Marsh singled out a number of its investment companies, saying that Kentro’s performance remains strong across both Nexus Underwriting Limited, the MGA business, and Xenia Broking Group, the broking business.
Moreover, since 2014, run-rate adjusted EBITDA has grown by over 6x to c.£21m with Kentro producing an EBITDA margin of over 33% over the past three years. Whereas, year-on-year EBITDA has also increased by 14% to more than £18 million in 2022.
B.P. Marsh noted that it continues to be pleased with the performance of Lilley Plummer. Lilley Plummer’s EBITDA has witnessed impressive gains over the prior year having increased over 4-fold, from c.£0.4 million to c.£2.0 million in 2022.
B.P. Marsh stated that the growth of Lilley Plummer over the last year is attributable largely to diversification into different classes of business, which includes the hiring of a new team which specialises in North American Property business
Additionally, B.P. Marsh also spoke about the insurance markets outlook. It wrote: “The insurance market has seen five years of constant rate increases across most lines of business, with the pace of these increases slowing somewhat over the past four quarters.
“Accordingly, there have been various market discussions regarding the longevity of these price increases, given the slowing of rate increases over 2021 / 2022. Nonetheless, there has been no drastic downward change in rates, with the decline taking longer than the market expected.”
The firm cited how there has been various macro-economic challenges facing the insurance market since the COVID-19 pandemic, such as the ongoing Ukraine & Russia conflict, as well as increased interest rates, inflation, and recent cat events, such as hurricane Ian.
Dan Topping, B.P. Marsh’s Chief Investment Officer, said: “It has been good to see the majority of our portfolio produce substantial growth over the financial year to 31 January 2023, and I am confident that the Group’s full year results will be in line with historical performance.
“Moving forward into our new financial year, the Group is cash resourced and well positioned to pursue its solid pipeline of new investment opportunities and potential development opportunities within the current portfolio. Accordingly, I remain confident about B.P. Marsh’s development over the next 12 months.”
