& Partners has acquired a 20% stake in Asia Reinsurance Brokers (ARB), the independent specialist reinsurance and insurance risk solutions provider based in Singapore.
The niche venture capital provider bought shareholding in ARB for about USD$1.8 million. It may increase its stake to 25% for an additional cash consideration of up to US$370,000. The consideration paid will be dependent on the performance of the Asian firm in its financial year ending 31 December 2017.
The investment in ARB will bring the portfolio of BP Marsh to 15 companies.
BP Marsh said the investment will be used to build on ARB’s position in the Asian market and to assist them in their growth ambitions. It described the Singapore-based firm as a well-established and profitable business with strong growth potential.
“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,” said company chairman Brian Marsh OBE.
BP Marsh chief investment officer Daniel Topping will be appointed to the ARB Board as the company’s nominee director.
“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,” Topping said.
Established in 2008, ARB specialises in the provision of long-term reinsurance and insurance solutions to various reinsurers and insurers throughout Asia. It has offices throughout the region, including Singapore, Malaysia, the Philippines and Indonesia.