GRP posts strong growth and remains on track to hit £1bn GWP target

  • Gross Written Premium: £400m (2015: £150m)
  • Run rate income: £45m (2015: (£19m)
  • Run rate EBITDA of underlying businesses: £12m (2015: £4.0m)
  • Trading profit as at 31 March 2016 grows from £2.40m to £5.30m
  • 12 acquisitions completed since 2013, including six in the new financial year, across all target segments (see note below)
  • Employee numbers grow to over 450 

“We have created a compelling proposition for our clients and insurer partners” – David Margrett, CEO, Global Risk Partners Limited (“GRP”)

Global Risk Partners Ltd (GRP), the specialist investment vehicle for brokers and MGAs, remains on track to become a £1bn business by 2018, after the business announced strong trading results as at 31st March 2016 

David Margrett, GRP chief executive, hailed a year of “frenetic activity, which is reflected in our numbers. 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 said that trading profit for GRP’s ultimate holding company level as at 31st March 2016 grew from £2.40m (2014-15) to £5.30m, reflecting additional earnings from a number of acquisitions in GRP’s core target segments of MGAs, Lloyd’s specialty brokers, and UK retail commercial brokers.

He explained that in total GRP had acquired 12 businesses to November 2016, with two acquired in the financial year to 31st March 2016 and a further six businesses acquired after 31st March 2016. 

We measure the success of GRP by the increase of our underlying EBITDA to £12m. 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 £7.11m for the period (2015 £2.69m).

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.”

Commenting on the results, Peter Cullum, GRP chairman, said:” 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.”