â– Record net asset value.
â– Private equity industry to provide likely exits for investee companies.
Not even the Covid-19 pandemic could prevent Aim-traded insurance sector investment company BP Marsh & Partners (BPM: 260p) from reporting a near double-digit year-on-year rise in net asset value (NAV) to a record £142.6m (396p a share).
This reflects the benefits of having a diversified investment portfolio of 18 investee companies that between them are forecast to produce £1.1bn of gross written premium (GWP) and £121m of commission fee income this year. All bar one of BP Marsh’s 11 Managing General Agencies (MGAs) investments reported valuation uplifts in the six months to 31 July 2020, the stand outs being: ATC Insurance, an Australian MGA specialising in accident & health, construction & engineering, trade pack and cyber insurance; and Stewart Specialty Risk Underwriting (SSRU), a Toronto-based MGA providing insurance solutions to clients in the Canadian property & casualty sector. The two investments accounted for a third of the £6m unrealised gains booked by BP Marsh, a reflection of their impressive operational performances.