BP Marsh eyes US fintech investment opportunities

Specialist venture capitalist BP Marsh & Partners announced continued strength in its investments, both domestically and abroad, in the six months leading to 31 July.

BP Marsh acquired a 35% stake in retail and wholesale Lloyd's insurance broker CBC in February for £4m.

CBC is projected to generate revenue of £5.55m and EBITDA of £630,000 in the year ending 31 December.

The group also poured $6m into New York-based speciality lines insurance company, XPT for an equal 35% and invested a further £7.13m into its stake at LEBC, rising 17.84% to 60.87%.

XPT is a newly established operation set up by a group of industry veterans to make minority and or majority investments into established entities in the US wholesale insurance arena.

Follow-on investments made in the period included a further 17.84% stake taken in financial advisor LEBC Group for £7.13m in July 2017, increasing its shareholding to 60.87% as the firm became directly authorised by the FCA at the beginning of last month.

Marsh grossed more than £27m from the disposal of Lloyd's brokers Besso Insurance and Trireme Insurance Groups in the half as it looked to diversify its portfolio.

Cash and equivalents available for investment stood at £13.2m at 31 July, after the board recommended a dividend of 3.76p per share, saying it saw a "strong flow of new investment opportunities, both in the UK and internationally", with discussions ongoing on a number possible investments.

Overall, the group reiterated that North America was a key focus point moving forward, especially in the financial technologies sector.

BP Marsh & Partners expected its interim results for the six months leading to 31 July to be released on 17 October.

As of 0905 BST, shares had nudged up 0.85% to 225.90p.