B.p. Marsh & Partners Plc · LSE:BPM
B.p. Marsh & Partners — Shares Investor Evening Webinar (September 2021)
25 slides from B.p. Marsh & Partners's conference presentation, Sep 8, 2021
Slide 1: Shares Investor Evening Webinar
Shares Investor Evening Webinar 8th September 2021 Dan Topping, Chief Investment Officer Jon Newman, Group Finance Director
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN This presentation and its contents may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in par
Slide 3: Introduction to B.P. Marsh
Introduction to B.P. Marsh Investment Strategy We take a long term view, with Who we are Team Longevity an average holding period of 5.7 years Making an initial investment of up to B.P. Marsh is a specialist private equity investor We are a complementary team of highly B.P. Marsh has been investing
Slide 4: B.P. Marsh & Partners PLC Board
B.P. Marsh & Partners PLC Board Brian Marsh Dan Topping Pankaj Lakhani Executive Chairman Chief Investment Officer Non-Executive Director 55+ years of experience 15+ years of experience 40+ years of experience Founded B.P. Marsh in 1989 Joined B.P. Marsh in 2007 and appointed Chief Investment Worked
Slide 5: B.P. Marsh & Company Limited Board
B.P. Marsh & Company Limited Board Brian Marsh Dan Topping Jon Newman Executive Chairman Chief Investment Officer Group Finance Director 55+ years of experience 15+ years of experience 20+ years of experience Founded B.P. Marsh in 1989 Joined B.P. Marsh in 2007 and appointed Chief Investment Joined
Slide 6: Dividends
Dividends The Group’s historic distribution payments are shown below. Aggregate dividend per share of 30.1p paid since flotation, being 21.5% of the flotation price • Aggregate dividend of £0.9m, February 2017: £1,800,000 Realisation of £12 paid in July 2021, representing July 2013: 4.76p 4.76p Bess
Slide 7: Performance: Net Asset Value (NAV)
Performance: Net Asset Value (NAV) 160.00 149.91 142.63 136.90 140.00 130.00 126.17 120.00 98.90 100.00 Full Year £ Millions 79.68 Half Year 80.00 70.81 62.97 58.92 *NB: The valuation at 55.46 60.00 31 January 2007 includes £10.1m net 44.17 40.61 proceeds raised on AIM 40.00 **NB: The valuation at 2
Slide 8: Investment and Exit Methodology
Investment and Exit Methodology Investment criteria Exit strategy B.P. Marsh invests up to £5m in equity and debt funding B.P. Marsh takes a long-term, flexible view when it for a minority position (typically 20-40%) in early-stage comes to exiting investments in Financial Services intermediaries, w
Slide 9: Value Creation and Growth Strategy
Value Creation and Growth Strategy Value creation drivers: Take minority equity positions in promising We aspire to be the early stage capital early stage financial provider of choice to the financial services services companies sector alongside talented Through applying our sector expertise we B.P.
Slide 10: Bridging the Gap
Bridging the Gap The Group is a specialist in providing early-stage finance, investing in businesses with an Enterprise Value of between zero and c. £25m > £250m The Group’s primary competitors typically would require an Enterprise Private Equity or Value of at least £50m before an opportunity becom
Slide 11: Overview – Managing General Agencies (MGAs)
Overview – Managing General Agencies (MGAs) B.P. Marsh’s MGAs are budgeting to Date of Equity % at 31 Valuation at 31 Cost of produce GWP of over £765m in 2021, in MGAs Investment Jurisdiction January 2021 January 2021 Investment % of NAV the aggregate This will produce over £77m of Nexus Aug-14 UK
Slide 12: Overview – Broking & IFA Investments
Overview – Broking & IFA Investments Since inception, much of B.P. Marsh’s growth has been underpinned by a Valuation at successful track record of investing in Date of Equity % at 31 31 January Cost of Brokers, both in the Lloyd’s and London Brokers Investment Jurisdiction January 2021 2021 Investm
Slide 13: Insurance Intermediary Overview
Insurance Intermediary Overview B.P. Marsh’s insurance intermediary portfolio companies are budgeting to produce in aggregate £1.4bn (c. $1.9bn) of Gross The Group’s Broking Written Premium (GWP) in 2021, an increase from £1.1bn investments are budgeting to (c. $1.5bn) in 2020, of which: place over
Slide 14: International Portfolio
International Portfolio Summa Insurance CBC UK Ltd Brokerage S.L. EC3 Brokers Ltd The Fiducia MGA Company Ltd Stewart Specialty Risk LEBC Holdings Ltd Underwriting Ltd Lilley Plummer Risks Ltd Nexus Underwriting Management Ltd Mark Edward Partners LLC Walsingham Motor Insurance Ltd Sage Program Unde
Slide 15: Nexus Underwriting Management Limited (Nexus)
Nexus Underwriting Management Limited (Nexus) CASE STUDY / CURRENT INVESTMENT (+ = Acquisition) 2008 Nexus Founded • Top 10 global MGA* On investment: B.P. Marsh’s valuation 5% • #1 independent trade credit broker in has increased from August 2014: Investment by B.P. Marsh the UK* Shareholding £1.6m
Slide 16: Stewart Specialty Risk Underwriting (SSRU)
Stewart Specialty Risk Underwriting (SSRU) CASE STUDY / CURRENT INVESTMENT SSRU was a start-up managing general agent (MGA) EBITDA has grown to £2.2m (c. CA$3.7m) for 2020, investment, specialising in the energy and and is currently budgeting to see substantial growth construction space in Canada, w
Slide 17: Lilley Plummer Risks Limited (LPR)
Lilley Plummer Risks Limited (LPR) CASE STUDY / CURRENT INVESTMENT B.P. Marsh invested in the newly-formed Lloyd's B.P. Marsh’s current shareholding in LPR is valued at broker LPR in October 2019, taking a 30% shareholding £2.3m as at 31 January 2021 for a cash consideration of £1m As at 31st Januar
Slide 18: XPT Group LLC (XPT)
XPT Group LLC (XPT) CASE STUDY / CURRENT INVESTMENT B.P. Marsh was a founding investor in XPT in June Moving into 2021 and beyond, XPT is well-positioned 2017, providing $6m for an initial shareholding of 35%. in the market to continue its expansion plans, both via organic growth and further acquisi
Slide 19: MB Prestige Holdings PTY Limited (MB)
MB Prestige Holdings PTY Limited (MB) CASE STUDY / REALISATION In August 2021, MB was acquired by ATC Insurance The consideration was paid in newly issued shares in Solutions PTY Limited (“ATC”), the Melbourne ATC, which increases B.P. Marsh’s shareholding by headquartered MGA and Lloyd’s Coverholde
Slide 20: MB Prestige Holdings PTY Limited (MB) – continued
MB Prestige Holdings PTY Limited (MB) – continued CASE STUDY / REALISATION Sold shareholding in MB for AU$6.8m (c. £3.57m), paid in $ 16M ATC shares increasing Transaction Represents: shareholding to 25.5% • Internal Rate of Return of 29% since MB made final repayment on B.P. $ 14M 2013 Marsh AU$1.4
Slide 21: Besso Insurance Group Limited (Besso)
Besso Insurance Group Limited (Besso) CASE STUDY / REALISATION B.P. Marsh was Instrumental in co-founding and The EV represented an increase of c. 58% on B.P. funding the modern guise of Besso in 1995, assisting Marsh’s valuation when the offer was made, being a specialist team who wished to depart
Slide 22: Howden Group Holdings Limited (Howden)
Howden Group Holdings Limited (Howden) CASE STUDY / REALISATION B.P. Marsh was instrumental in co-founding and Since inception Howden had grown from 5 staff to funding Howden in 1994, with an initial equity over 3,000, producing revenue of £299m at exit. investment of £25,000 and a further equity in
Slide 23: Key Financial Highlights - Year to 31st January 2021
Key Financial Highlights - Year to 31st January 2021 Operating Profit Underlying Profit Net Asset Value (NAV) £13.8m Loans Repaid £0.9m £149.9m up 10.7% £2.9m up 10.0% up 9.5% 18 Investments £2.4m new Equity Total Shareholder Return £1.1m new Loans Equity Portfolio 10.1% Loan Portfolio Dividend incl
Slide 24: Key Financial Highlights - continued
Key Financial Highlights - continued Current Liquidity NAV per share £3.7m 411.3p diluted Compound NAV Growth including £2m Loan Facility 8.2% since flotation Discount to 11.7% since inception diluted NAV Share Price 21.5% 323p at 7 September 2021 Share Price up 32% in last twelve months © 2021 B.P.
Slide 25: Investment Case
Investment Case Historic Growth in Experienced Discount to Net Asset Value Management Team Net Asset Value Access to Specialist Long-term Dividend Policy Investment Portfolio Growth Potential © 2021 B.P. MARSH & PARTNERS PLC PAGE 25
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