B.P. Marsh & Partners Plc, the specialist private equity investor, announced it is investing in a new collateralized reinsurer that aims to support growth in its long-time investee company XPT Group, the U.S. wholesale insurance broking and underwriting agency platform.
B.P. Marsh has committed a maximum of $5 million to the formation of Gambit Risk Finance (Gambit Re), of which $1.875 million will be funded on completion, the company said in a London Stock Exchange filing. In return, B.P. Marsh will receive a preferred equity shareholding of approximately 8%, which carries an 8% preferred annual return.
Gambit Re will support XPT’s strategic growth ambitions and enhance its operational and financial flexibility by enabling XPT’s underwriting arm, Platinum Specialty Underwriters, to provide risk capital for selected underwriting programs within its insurance portfolio.
Gambit Re will initially support five profitable Platinum programs across its underwriting portfolio, said B.P. Marsh, noting that the reinsurer “is expected to deliver a strong risk-adjusted return, underpinned by Platinum’s historical underwriting discipline.”
Gambit Re’s capital structure is composed of $60 million of preferred equity, with participation from:
- Accord Capital Investments (providing $45 million),
- RSP, a vehicle formed by XPT senior management (providing $10 million), and
- B.P. Marsh (providing $5 million).
Accord Capital is a Chicago-based alternative lending and capital advisory firm, which offers strategic capital and operational guidance to entrepreneurial teams from early-stage startups to mature enterprises.
Management and operational services will be provided by Platinum, with reinsurance administration outsourced to Atlantic Security Ltd., a Bermuda-based specialist.
B.P. Marsh said it sees this investment as an opportunity to support one of its experienced management teams with a good track record in the sector.
“We are confident that Gambit Re can deliver long term returns to our shareholders, further building on our ability to source and make unique investment opportunities in the insurance sector, alongside our primary focus on insurance distribution investments,” said London-headquartered B.P. Marsh, which owns a 29% stake in XPT.
The partnership between the two companies began in 2017 when XPT was launched and received a $6 million investment from B.P. Marsh. In November 2024, B.P. Marsh provided another investment of $12.6 million.
“Gambit Re allows us to demonstrate conviction in our Platinum underwriting programs and provide our partners with added confidence through aligned capital,” according to Tom Ruggieri, CEO of Plano, Texas-headquartered XPT, in a statement. “The initiative reflects our commitment to innovation and our focus on building a sustainable, high-performing specialty platform. We value the partnership with B.P. Marsh and are excited to move forward together.”
“This investment is a natural extension of our long-standing partnership with XPT. Gambit Re enables XPT to demonstrate alignment with its carrier partners and expand its Platinum underwriting footprint with greater flexibility,” commented Dan Topping, chief investment officer of B.P. Marsh.
“The initiative aligns with our approach of backing entrepreneurial management teams with capital solutions tailored to their growth ambitions. We are pleased to continue supporting the XPT team in building a best-in-class specialty platform,” Topping added.
Topics Reinsurance