Specialist insurance broker BMS Group announced that its results for the year ended December 31, 2010, show a “strengthening of financial resources and a share buyback,” which will “support BMS’ expansion strategy in the US and London, as well as provide resources to deliver on its growth objectives.
“BMS’ financial performance in 2010 showed good progress, up 7 percent breaking through the £50 million ($83 million) revenue level,” the report continued. “Brokerage per head was also up 7 percent at £188,000 ($312,000). The key profit measure of underlying EBITDA recorded 28 percent growth at £7.1 million ($11.8 million). Further growth is expected in 2011, when the current investment phase begins to deliver returns, generating new business and capital for the Group.”
BMS also announced that it has “reached agreement with its only external shareholder AHJ Holdings Ltd (AHJ), to buy back its shareholding over the next two years. This agreement is subject to shareholder approval but BMS has received undertakings from the required majority to effect this transaction. Following completion of the buyback, the Group will be wholly-owned by current and former employees, reinforcing its position as an independent broker and facilitating continued expansion and acquisition of new teams.”
The first six months in 2011 have also shown significant growth. The company noted that it had expanded its “wholesale division with the hire of Nick Cook, former CEO of Glencairn, and the subsequent hires of a number of key, high-profile staff for the division.
“In addition, in US reinsurance BMS has hired Theresa Schugel to lead its Specialty Casualty business and Phil Campbell in Property and Casualty. Furthermore, in April 2011 BMS launched Pioneer Underwriting, in partnership with Liberty Syndicates, to underwrite a diverse portfolio of business.”
Group Finance Director, Paul Vincent commented: “We are pleased with this strong set of financial results for 2010. The banking arrangements support our already strong cash position and the agreement with AHJ ensures BMS staff will hold all of the share capital of the Group. This reinforces our independence and the benefits that this brings to our clients.”
Group CEO, Carl Beardmore added: “BMS’ vision is to at least double in size in the next four years. We are committed to offering a valid alternative to the big three brokers, both in the US and London insurance markets. With these astute and practical transactions our capital structure is now in place. Together with new recruits to the Group, this provides us with the resources, momentum and determination to achieve our goals.”
Source: BMS Group
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