B.P. Marsh & Partners Plc
Investee Company Update – Nexus Underwriting Management Limited
B.P. Marsh, the specialist investor in early-stage financial services businesses, is pleased to announce that on 30 December 2020, its investee company Nexus Underwriting Management Limited (“Nexus”), the leading independent specialty Managing General Agent, completed the acquisition of the Hiscox MGA Marine business (“Hiscox Marine”) from Hiscox Ltd, the listed international specialist insurer.
This expert team provides yacht and marine trades insurance and will become an integral part of Millstream Underwriting Limited (“Millstream”), a Nexus Group company which specialises in consumer insurance
Hiscox Marine was established in 2012 and is led by Paul Miller who has more than 35 years' experience in the yacht market, including eight years on the Joint Hull Committee and five years as Chairman of the Inland Hull, Fishing vessels and Yachts Committee. Five other members of the original team have transferred to Millstream as part of the acquisition, bringing to Nexus a market-leading team that enjoys continuity and considerable expertise in this specialist class of business.
Since B.P. Marsh first invested in Nexus in August 2014, their business has grown from a Gross Written Premium of £50m to a budgeted figure of £344m in 2020. Over the same period, Nexus' EBITDA has increased from £2.6m to a forecast of £14.5m in 2020.
At its most recent valuation on 31 July 2020, B.P. Marsh valued its 18.1% shareholding in Nexus at £40.3m, which represents an increase of £29.2m over the total amount invested.
Colin Thompson, Founder and Group CEO of Nexus, commented:
“The completion of this deal marks Nexus' 18th acquisition since its inception and is a fantastic way to close out 2020. As we look to grow from a $500 million GWP MGA today towards a $1billion GWP MGA in 2023, this is exactly the sort of sizeable specialty business with significant underwriting pedigree that we will be looking to partner with moving forwards.”
Commenting on the recent activity, the Group's Chief Investment Officer and Nominee Director on the Board of Nexus, Daniel Topping, commented:
“The acquisition of the Hiscox Marine team continues to demonstrate the ability of the Nexus team to grow their business, both organically and via acquisitions. B.P. Marsh are fully supportive of Management's goal to achieve Gross Written Premium income of $1 billion.
“Our investment in Nexus highlights the benefits of investing in ambitious management teams and entrepreneurs at the early stage of their businesses as long term partners, creating value for both B.P. Marsh investors and the investee company alike.”