B.P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to note that its investee company Nexus Underwriting Management Limited (“Nexus”), in which it holds an 18.6% shareholding, has announced that it has acquired Equinox Global Limited (“Equinox”), a Trade Credit Managing General Agent with Lloyd’s Coverholder approval. In 2017 Equinox is forecast to produce gross written premium of £20m, revenue of £5.1m and an EBITDA of £0.7m. This acquisition was funded via a proportion of the previously announced £30m loan facility provided by the Company and HPS Capital Partners.
Established in 2009, Equinox is majority owned by management and staff, alongside the global insurer, the Beazley Group, which owned 37%. Following the acquisition of Equinox by Nexus, Equinox will continue to have underwriting capacity from Beazley, via a 10 year underwriting support agreement.
Equinox has offices located in London, New York, Paris, Hamburg and Amsterdam. The business will continue to be run by Equinox’s founding shareholders and management team.
The combination of Nexus and Equinox will result in Nexus having a profitable trade credit insurance offering of £60m in terms of gross written premium.
Nexus underwrites a number of speciality products on behalf of underwriting partners that support its product offerings within the following lines of business: financial lines, trade credit, accident & health, surety, travel, property, latent defect, marine and cyber.
Nexus’ Chairman Colin Thompson stated: “Equinox and Nexus’s books of trade credit insurance business are complementary, with very little overlap, both in terms of line sizes and geographical focus, resulting in significant opportunities to expand globally by harnessing the joint distribution channels following the transaction.”
Daniel Topping, B.P. Marsh’s Chief Investment Officer and the Company’s nominee director on the Board of Nexus commented: “We are delighted with the acquisition by Nexus. Not only have they acquired a first rate team of seasoned professionals, but have also created an operating division which is the largest trade credit underwriting agency internationally.”
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