BP Marsh reports NAV increase in latest results
Venture capital provider BP Marsh has reported a net asset value (NAV) of £179.8m for the group’s financial year ended 31 January 2023, compared with £166.6m for the same period last year.
In a statement, BP highlighted a number of its investment companies and said Kentro’s performance continued to be strong at both Nexus Underwriting Limited, its MGA business, and Xenia Broking Group, its brokerage business.
Additionally, run-rate adjusted EBITDA has grown more than six-fold since 2014 to c. £21m, with Kentro having generated an EBITDA margin of over 33% over the last three years. While EBITDA is also up 14% year-on-year to more than £18m in 2022.
BP noted that it remains pleased with Lilley Plummer’s performance. Lilley Plummer’s EBITDA posted impressive year-on-year growth, growing fourfold from c.£0.4m to c.£2.0m in 2022.
BP explained that Lilley Plummer’s growth over the past year was largely due to diversification into different lines of business, including the hiring of a new team specializing in North American real estate
In addition, BP Marsh also spoke about the prospects for the insurance markets. It states: “The insurance market has seen five years of steady rate increases across most lines of business, although the pace of those increases has slowed somewhat over the last four quarters.
“Accordingly, there have been various market discussions about the longevity of these rate increases given the slowdown in rate increases over 2021/2022. However, there has been no drastic downward movement in rates, with the decline lasting longer than market expectations. ”
The company cited that the insurance market has faced various macroeconomic challenges since the COVID-19 pandemic, such as the ongoing conflict between Ukraine and Russia, as well as increased interest rates, inflation and recent disasters such as Hurricane Ian.
Commenting on the results. Dan Topping, Chief Investment Officer of BP Marsh, said: “It has been good to see the majority of our portfolio posting significant growth for the year ended 31 January 2023 and I am confident that the Group’s full year results will reflect this historical achievement.
“As we enter the new financial year, the group is cash-positioned and well-positioned to continue on its solid pipeline of new investment opportunities and potential development opportunities within the current portfolio. Accordingly, I am confident about the development of BP Marsh over the next 12 months.”
