B.p Marsh Regulatory News (BPM)

Date: 14 August 2014

On behalf of: B.P. Marsh & Partners Plc

Immediate release

B.P. Marsh & Partners Plc

("B.P. Marsh" or "the Company")

Acquisition - Replacement

B.P. Marsh advises that the following replaces the Acquisition announcement released on 14 August 2014 at 12:22 under RNS number 1566P.

Nexus' premium income in 2013 was £55m and not £41m as stated in the original announcement.

All other details remain unchanged. The full amended text appears below.

B.P. Marsh & Partners Plc

("B.P. Marsh" or "the Company")

Acquisition

B.P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to announce that it has subscribed for a 5% Preferred Ordinary shareholding in Nexus Underwriting Management Limited ("Nexus"), the independent specialty Managing General Agency (MGA), for a total consideration of £1,554,000.

Founded in 2008 by Colin Thompson, its CEO and Ian Whistondale, its Chairman, Nexus has grown rapidly in the six years since inception; from a standing start it has cumulatively underwritten in excess of US$350m GWP. Colin Thompson has significant experience in the insurance sector, having previously undertaken senior roles at Axis Specialty Europe Ltd and Chubb Insurance Company of Europe SA. Ian Whistondale has over 30 years' experience in the London insurance market and has successfully founded and managed a number of profitable insurance underwriting and brokerage businesses.

Nexus has two operating subsidiaries, Nexus Underwriting Limited, which underwrites Speciality Insurance Products (Directors & Officers, Professional Indemnity, Financial Institutions and Accident & Health), and Nexus CIFS Limited, which specifically covers Trade Credit Insurance.

Nexus is one of the largest independent specialty MGAs in the London Market with a forecast Premium income in excess of £60m in 2014 (£55m in 2013). Commission income has risen from £873k in 2008 to a forecast of £13m in 2014, operating profit rising from £560k to a forecast of circa £3m over the same period.

B.P. Marsh considered that the opportunity to invest in a well established and fast-growing business, with on-going development potential and an experienced and ambitious management team, justified a smaller minority stake (at 5%) than is typical for the Company.

The investment will be used to build on Nexus' well-established position as a market leader and assist the company in its growth ambitions.

Commenting on the receipt of this investment, Colin Thompson, Nexus' CEO stated "B.P. Marsh have an excellent track record in supporting businesses in their development and growth. Not only does this investment ratify a valuation of over £30m but will also provide us with the opportunity to access follow on funding for future growth plans."

Commenting on this transaction, Brian Marsh OBE, Chairman of the Company, stated "We are very pleased to take this initial stake in Nexus, to which we are hoping to add over the months and years ahead."

Daniel Topping will be appointed to the Board of Nexus as the Company's nominee director, subject to FCA approval. Commenting on this investment he stated "whilst a departure from our normal investment approach the Board of B.P. Marsh saw this as an excellent opportunity to deploy capital into a fast growing, specialist insurance intermediary which should provide a good opportunity for shareholder returns."

This investment will bring the Company's portfolio to 11 companies and is the fourth standalone MGA to be added to the portfolio.

For further information:

B.P. Marsh & Partners Plc www.bpmarsh.co.uk

Brian Marsh OBE / Camilla Kenyon +44 (0)20 7233 3112

Nominated Adviser & Broker

Panmure Gordon

Fred Walsh / Charles Leigh-Pemberton / Atholl Tweedie +44 (0)20 7886 2500

Notes to Editors:

About B.P. Marsh & Partners Plc

B.P. Marsh's current portfolio contains eleven companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.

Since formation over 20 years ago, 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 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 a Chartered Management Accountant and is the Group Director of Finance and has over 17 years' experience in the financial services industry. Jonathan advises investee companies and has a number of non-executive appointments over three investee companies and evaluates new investment opportunities.

Daniel Topping is a Member of the Chartered Institute of Securities and Investment (MCSI) and an Associate of the Institute of Chartered Secretaries and Administrators (ACIS), having graduated from the University of Durham in 2005. Dan joined B.P. Marsh in February 2007 having started his career at an accountancy firm. In 2011 he was appointed as a director of B.P. Marsh and currently has a number of non-executive appointments over six investee companies and evaluates new investment opportunities.

Camilla Kenyon was appointed as Head of Investor Relations at B.P. Marsh in February 2009, having four years' prior experience with the Company. Camilla has a number of non-executive appointments over two investee companies, is Chair of the New Business Committee and is a Member of the Investor Relations Society.

Natasha Dunbar has over 18 years' experience in the financial services industry. Having joined the Company in 1994 she was made managing director in March 2002, subsequently becoming a non-executive director of the Company in 2008, a position she held for five years. Natasha was reappointed as a Director in February 2013 and holds a non-executive appointment at one of our investee companies.

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