Another investment announcement will follow later in June

BP Marsh’s £1.4m investment in Lloyd’s insurance and reinsurance broker NCG Professional Risks is the first of two announcements the investment firm will make this month, according to chairman Brian Marsh.

BP Marsh focuses on investing in early-stage financial services firms, with the bulk of its interests – 89% – in the insurance industry. The firm’s insurance holdings include brokers Besso, Hyperion Insurance Group and Summa Insurance Brokerage.

“We only have 10 investments, and at any one time there is something going on with nearly all of them,” said Marsh. “There is one of our investments we anticipate will be the subject of an announcement, probably before the end of this month.”

Marsh declined to name the firm. However, Besso is thought to be seeking a new ownership structure, including a management buy-out.

BP Marsh’s £1.4m investment in NCG – achieved by buying a 30% stake in its holding company, US Risk (UK) – will be used by the firm to diversify further and strengthen its current areas of focus: professional indemnity, North American business, special risks and reinsurance.

The firm aims to at least double in size over the next five years through a combination of organic growth, recruitment and acquisition. BP Marsh has agreed to provide the firm with additional funding of up to £1.95m, subject to conditions.

Given BP Marsh’s focus on start-ups, the investment in NCG, formed in 1999, may seem a departure. But Marsh said: “The firm has been running for 10 years, but it needs to set off on a new path. Its owners have reached an agreement with us that we will jointly set it off in that direction.”