14th Aug 2014 11:37
LONDON (Alliance News) - BP Marsh & Partners PLC Thursday said it has acquired a 5% shareholding in Nexus Underwriting Management Ltd for GBP1.55 million.
The niche venture capital provider to early stage financial services businesses, said the investment will be used to build on the company's growth ambitions.
Nexus Underwriting Management is an independent specialty managing general agency. Its commission income is forecast to rise to GBP13 million in 2014, from GBP873,000 in 2008, with an operating profit forecast to be around GBP3 million, from GBP560,000 over the same period.
"BP 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 than is typical for the company," the company said.
This investment will bring the company's portfolio to 11 companies and is the fourth standalone MGA to be added to its portfolio.
The company's stock was flat Thursday early afternoon, at 125.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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