B.p Marsh Regulatory News (BPM)

10 August 2021

B.P. Marsh & Partners Plc

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

Investee Company Update - Stewart Specialty Risk Underwriting Ltd

B.P. Marsh & Partners Plc (AIM: BPM), the specialist investor in early-stage financial services businesses, is pleased to confirm that Stewart Specialty Risk Underwriting Ltd ("SSRU"), an independent Underwriting Agency, headquartered in Toronto, Canada, has, as of 30th July 2021, repaid in full the original loan facility provided by B. P. Marsh at investment.

B.P. Marsh invested in SSRU in January 2017, taking a 30% equity stake for a nominal value of £19 (CA$30) and providing a loan facility of £490,000 (c. CA$850,000).

Since investment, SSRU has grown exponentially, and is on track to meet its budget for the current year, namely a Gross Written Premium of £31m (CA$55m) and EBITDA of £2.6m (CA$ 4.6m). Our valuation has increased in line with this growth, and as at 31st January 2021, we valued our stake in SSRU at £5.6m (c. CA$9.73m).

Over the period since investment, SSRU drew down c. £270,000 (CA$450,000) from its B.P. Marsh Loan Facility. This enabled SSRU to expand from working solely in the Canadian Casualty Liability field into the Canadian Property market. SSRU made the final repayment from the facility at the end of July.

SSRU has achieved the goals set out in its business plan, and emerged as an innovative and robust business, with an exemplary operating structure.

The repayment of this loan to the B. P. Marsh comes 18 months earlier than originally envisaged. 

CEO of SSRU, Stephen Stewart said:

"B.P. Marsh's original loan facility allowed SSRU the flexibility to grow into the multi - line operation that we are today. Their continued support has helped SSRU to consistently exceed plan since inception. We have now executed early retirement of the B.P. Marsh loan facility, leaving SSRU completely debt free.

SSRU will always look to B.P. Marsh as the first port of call for capital and strategic support as we continue the expansion of our operations."

B.P. Marsh's Chief Investment Officer, Dan Topping, stated:

"SSRU has been an excellent investment for B.P. Marsh, and is a good illustration of the benefits of investing in strong management teams with clear business plans and providing them the capital and support they need to achieve them. We would like express our appreciation to Stephen Stewart and the management and staff for their hard work."

This is a non-regulatory announcement.

For further information:

Notes to Editors:

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

Since formation over 30 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 approaching ten years.

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