Shares in specialist insurance investor B.P. Marsh (BPM:AIM) climbed 9% to 256p after the firm posted a near-10% rise in net asset value (NAV) year-on-year to £142.6 million or 396.2p per share for the first half to the end of July.

The company also reported a 16% rise in after-tax profits to £6.5 million, while the total shareholder return for the first six months was 4.5% including the 2.2p per share dividend paid in July.

BUSY HALF

True to form, the firm continued to invest in new opportunities, taking a 30% cumulative preferred shareholding in US specialist insurance provider SAGE in June, while raising its stake in both Australian agricultural insurance provider Ag Guard and UK event cancellation insurance business EC3 Brokers after the period end.

At the same time, its investee companies continue to grow with US specialty insurance distributor XPT buying Texas-based managing general agent LP Risk, and London-based managing general agent Nexus - Marsh’s biggest holding in terms of percentage of group NAV - buying the trade credit business of Howden, one of the UK’s largest trade insurance brokers.

The firm has budgeted for its insurance investee companies to produce gross written premiums of roughly $1.5 billion for the year to December, of which just around 60% is attributable to managing general agents and 40% to insurance brokers.

NEW BUSINESS AREA

Meanwhile the value of its sole non-insurance business, independent financial advisor LEBC, rose to £25 million at the end of July against a purchase price of £12.37 million.

The firm says it ‘continues to see investment opportunities in the financial planning and advisory sector’, which is already seeing consolidation both from the inside and from outside as banks and other institutions look to add to their repertoires.

READ MORE ABOUT B.P. MARSH HERE

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Issue Date: 13 Oct 2020