BP Marsh returns to profitability in 2010

BP Marsh & Partners, a venture capital firm with stakes in a number of UK insurance businesses, has posted a profit on ordinary activities after tax of £0.3m for the year ended January 31 2010, compared with a loss of £1.7m the previous year. This figure includes an unrealised increase on the value of its portfolio. Excluding portfolio movement, the firm made a profit before exceptional items of £0.2m in the year to January 31 2010, compared with a profit of 0.4m the year before.

The company, which invests in early-stage financial services businesses, has a 22.73% stake in Lloyd’s broker Besso, a 19.5% stake in broker Hyperion Insurance Group, a 1.16% shareholding in run-off management provider Randall & Quilter and a 48.63% holding in Spanish broker Summa Insurance Brokerage. It also has a 22.5% stake in US risk modelling firm Paterson Squared and a 20% stake in Portfolio Design Group, which sells with-profits life endowment policies to large financial institutions.

During the year, BP Marsh made further investments in two of its existing companies. The firm completed its third capital increase for Summa, of €1.32m (£1.11m), as part of its investment commitment to the broker in November 2009, bringing the total investment to £5.1m.

In June 2009, BP Marsh lent Hyperion £2.46m for working capital purposes to assist the broker’s international expansion, and also agreed to subscribe €0.9m for loan notes in a Hyperion subsidiary as part of a €4.5m loan note issue.

Also in the period, BP Marsh sold its entire stake in JMD Specialist Insurance Services Group to Randall & Quilter. On 3 September, another company in BP Marsh’s portfolio, Trillium Partners, and independent corporate advisory, was placed into administration.