BP Marsh buys stake in Asia Reinsurance Brokers

Venture capital firm BP Marsh & Partners has acquired a 20 percent stake in Singapore-headquartered Asia Reinsurance Brokers (ARB) for S$2.4 million ($1.8 million).

The investment into the re/insurance risk solutions provider will bring the BP Marsh’s portfolio to 15 companies.

Under the transaction, BP Marsh may increase its shareholding in ARB to 25 percent for an additional cash consideration of S$500,000.  The consideration paid will be dependent on the performance of ARB in its financial year ending December 31, 2017.

ARB was established in 2008, following a management buy-out of the business from AJ Gallagher, led by the chief executive officer (CEO), Richard Austen. It has offices throughout the region, including Singapore, Malaysia, the Philippines and Indonesia.

Austen said: "The board of ARB are delighted to welcome BP Marsh, a successful long term international industry investor, as a new shareholder. Their investment affirms and endorses ARB's unique 'trusted market position' and will further enhance our regional analytical and specialist services which differentiates us from our competitors."

Brian Marsh, chairman of BP Marsh, added: "We are very pleased to take this stake in ARB, a business with an accomplished and experienced management team. We look forward to working with them to develop their business."

Daniel Topping, chief investment officer of BP Marsh, will be appointed to the board of ARB as the company's nominee director.

He said: “We viewed this investment as an excellent opportunity to take a shareholding in a profitable independent reinsurance broker, with an enviable client list of regional and international insurers. We anticipate supporting the first rate management team in their endeavours to further develop and grow their company."