BP Marsh buys 5% stake in MGA for £1.6m

BP Marsh has bought a 5% stake in MGA Nexus Underwriting Management for £1.6m.

This will bring BP Marsh’s portfolio to 11 companies and will make it the fourth standalone MGA it has invested in.

BP Marsh said it was attracted to Nexus because it is “well established and fast-growing, with on-going development potential and an experienced and ambitious management team”.

Nexus has two operating subsidiaries, Nexus Underwriting Limited, which underwrites speciality insurance products (directors and officers, professional indemnity, financial institutions and accident and health), while Nexus CIFS Limited covers trade credit insurance

The London Market MGA has forecasted that its premium income for 2014 will be £60m, up 9.1% from £55m in 2013.

Nexus chief executive Colin Thompson said: “BP Marsh have an excellent track record in supporting businesses in their development and growth. Not only does this investment ratify a valuation of over £30m but will also provide us with the opportunity to access follow on funding for future growth plans.”

BP Marsh chairman Brian Marsh added: “We are very pleased to take this initial stake in Nexus, to which we are hoping to add over the months and years ahead.”