Investment in U.S. Risk (UK)
Date: 10 June 2010
On behalf of: B.P. Marsh & Partners Plc ("B. P. Marsh" or the "Company")
B.P. Marsh & Partners Plc
Investment in Insurance Broker
B.P. Marsh & Partners Plc (AIM: BPM), a niche venture capital provider to early stage financial services businesses, today announces that, subject to FSA approval, it has acquired a 30% equity stake in U.S. Risk (UK) Limited ("U.S. Risk") for a cash consideration of £1,396,417.
U.S. Risk is the parent company of NCG Professional Risks Limited ("NCG"), a London based Lloyd's insurance and reinsurance broker. The investment will be used to drive NCG's growth plans to diversify the business further and strengthen its core areas of focus: professional indemnity, North America, special risks and reinsurance.
B.P. Marsh's investment consists of an equity investment of £1,396,417 together with an agreement to provide additional funding of up to £1,950,000, subject to conditions. B.P. Marsh financed the initial equity investment from existing cash resources (not from the recently announced Directors Loan).
This investment increases B.P. Marsh's portfolio to 10 companies.
Randall Goss is the founder of U.S. Risk Insurance Group Inc and Executive Chairman of NCG Professional Risks Ltd, and Neill Cotton is the Managing Director of NCG. For the year ended 31 December 2009 NCG reported audited turnover of £5.6m with profit after tax of £556,716.
As is consistent with the Company's investment approach, two B. P. Marsh representatives, Brian Marsh and Daniel Topping, will join the boards of U.S. Risk and NCG and its parent company, U.S. Risk Insurance Group Inc.
Commenting on the investment, Brian Marsh OBE, B.P. Marsh's Chairman, said:
"This is an excellent investment opportunity with a good management and business plan that fits with our tried and tested business strategy. It has a clear plan for future growth and diversification under the strong leadership of Randall Goss, whom I have known for over three decades. We are pleased to be able to provide our support at this crucial stage in the Company's development, in the light of the significant growth potential that we believe exists for it in its chosen markets."
Randall Goss, Chairman of U.S. Risk, commented:
"It's great to be working with Brian again - I have a huge respect for him. He has a depth of experience within the insurance industry which will be invaluable to the continued success of NCG."
Neill Cotton, Managing Director of NCG Professional Risks Limited, commented:
"We have an ambitious but realistic growth strategy which we hope to achieve through organic growth and by acquiring new teams and complementary businesses. We are delighted to have B.P. Marsh's experience and guidance on board to help us achieve our goals. "
B.P. Marsh announced its Preliminary Results for the year ended 31st January 2010 on 2nd June 2010. It announced the quoted share price of the Group increased by 61% (2009: 57.5p, 2010: 92.5p). At 31st January 2010, the net asset value of the Group was £44.2m (2009: £43.9m) after making allowance for deferred Corporation Tax, an increase of 0.7%.
- ends -
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE +44 (0)20 7233 3112
Nominated Adviser
Arbuthnot Securities
Nick Tulloch / Ben Wells/Ed Gay +44 (0)20 7012 2105
Redleaf Communications
Emma Kane/Alicia Jennings +44 (0)20 7566 6741
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains 10 companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Over the past 20 years, 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 and half 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.
Jonathan Newman is the Group Director of Finance and has over 10 years' experience in the financial services industry. Jonathan advises investee companies through several non-executive board appointments and evaluates new investment opportunities.
Robert King is a Director and Group Company Secretary. He joined B.P. Marsh in May 2003 having started his career at PricewaterhouseCoopers. Since joining B.P. Marsh he has taken on responsibility for the Group's legal, compliance and secretarial functions and played a key role in the flotation of the Company.
About NCG Professional Risks Ltd
In 2003, U.S. Risk Insurance Group, Inc acquired a majority shareholding in NCG Professional Risks Limited. It set up a London based holding company, U.S. Risk (UK) Limited, which held 100% shareholding in NCG Professional Risks Limited.
In March 2004 NCG gained Lloyd's Accredited status. It was approved by the Financial Services Authority (FSA) two months later and was fully authorised in January 2005.
In July 2004, NCG acquired a high profile team of individuals to create a North American Division, initially focusing on Speciality Lines business emanating from the United States and Canada. This division has since grown and diversified into offering additional lines of cover, specifically Property & Casualty.
In May 2007, NCG Professional Risks acquired a team of individuals, culminating in the creation of the Company's International division, responsible for the placement of Property and Casualty facilities throughout Australasia and the introduction of a worldwide facultative Reinsurance portfolio.
NCG has strong links with major Lloyd's Managing General Agents and syndicates as well as London Company Market insurers.
Further information on NCG Professional Risks Limited is available via its website: www.ncgpi.co.uk
This information is provided by RNS
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