Global Risk Partners seeks further acquisitions after ‘frenetic’ year of activity
Global Risk Partners (GRP), the specialist investment vehicle for brokers and MGAs, has said it is seeking further acquisitions and remains on track to become a £1 billion business by 2018 as it posted its results for the year ending March 31, 2016.
The company posted gross written premiums of £400 million, a big increase on the £150 million it posted in the same period a year earlier.
Its trading profit for the period increased to £5.3 million compared with £2.4 million a year earlier. Its Run rate EBITDA of underlying businesses increased to £12 million compared with £4 million the year before.
The company has been through a rapid period of growth completing 12 acquisitions since 2013 including six in the new financial year, across all target segments.
David Margrett, the chief executive of Risk Partners, described the year as one of “frenetic activity”. He added: “We have acquired a stream of high quality businesses, with strong management teams, who are fully focused on growing market share by delivering top quality service to our clients.”
Margrett added: “From an aspirational start up in October 2013 we are today a significant market player, with a compelling proposition for our clients and insurer partners. We will continue to invest heavily in new companies, teams and individuals as we look to further grow our distribution footprint thus helping brokers who want to create value from their life’s work.”
On further acquisitions, Margrett said: “The market should expect to see more GRP activity in the retail market as we build our distribution by growing our network of regional UK hubs.
“We now have an excellent platform in the Lloyd’s market with Lonmar and Ropner, but we remain interested in bolt-on acquisitions and recruitments that add strategic value to our business.
“On the MGA side of the business, we continue to seek businesses that have niche portfolios and which can demonstrate strong underwriting profitability.”
He added that his main measurement of success for the company is its underlying EBITDA. “The accounting treatment of our financing costs, amortization of goodwill and central finance and M&A costs relating to our acquisitions result in a pre-tax loss of £7.11 million for the period (2015 £2.69m).”
Peter Cullum, the company’s chairman, added: “The Group has an extensive pipeline of target business acquisitions coupled with strong growth projections for present Group companies. GRP is in an exciting position and I remain confident that we will achieve our longer term strategic aims.”
