Business
Investment in Sterling Insurance Pty Limited
Investment in Sterling Insurance Pty Limited.
About this update from B.p. Marsh & Partners Plc
[{"type":"text","content":"\n \nRNS Number : 3634G B.P. Marsh & Partners PLC 05 June 2013 \n\nDate: 5th June 2013\nOn behalf of: B.P. Marsh & Partners Plc (\"B.P. Marsh\", \"the Company\" or \"the Group\")\n \nImmediate release\n \nB.P. Marsh & Partners Plc\nInvestment in Sterling Insurance Pty Limited\n \n \nB. P. Marsh & Partners Plc (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to announce that through a joint venture enterprise alongside Besso Insurance Group Limited (\"Besso\") it has acquired an effective 19.7% stake in Sterling Insurance Pty Ltd (\"Sterling\"), a specialist underwriting agency offering a range of insurance solutions within the Liability sector specialising in niche markets including hard-to-place and complex risks.\n \nSterling's core management team operated as Sterling Insurance Brokers in the 1980's & early 1990's before being acquired by Heath Lambert. The team continued to operate under Heath Lambert, joining the IUS Group in 2003 then conducting an MBO in 2008 to become an independent entity with offices in Sydney, Perth and Brisbane. Besso has had a commercial relationship with Sterling since 2004.\n \nSince its MBO from IUS in 2008, Sterling has grown revenues from AU$2,727,053 to AU$5,799,832 and operating profit of AU$458,940 to a post-tax profit of AU$1,222,608 as at its year-end position at 31st December 2012.\n \nNeutral Bay Investments Limited (\"Neutral Bay\"), the joint venture entity (of which the Group owns 49.9%, the remaining majority stake owned by Besso) purchased a 39.47% shareholding in Sterling from Sterling's founder George Condell for AU$6,159,571, with George Condell retaining a reduced stake going forwards. Daniel Topping has been appointed to the boards of both Neutral Bay and Sterling, as B.P. Marsh's nominee director.\n \nAs per its ongoing pledge to support Besso in its expansion plans, the Group has funded Besso's proportion of this investment by way of a secured £2,000,000 loan facility, repayable over the next four y...