B.p. Marsh & Partners Plc · LSE:BPM
B.p. Marsh & Partners — H1 2025 Earnings Presentation
46 slides from B.p. Marsh & Partners's earnings presentation, Oct 23, 2024
Slide 1: Interim Results
Interim Results For the six month period ended 31 July 2024 Dan Topping, Chief Investment Officer Francesca Chappell, Chief Finance Officer 23rd October 2024
Slide 2: Introduction to B.P. Marsh
Introduction to B.P. Marsh Our Purpose Our Team Our Story Our Investment B.P. Marsh is a specialist private We are a complementary team of B.P. Marsh has commenced Strategy equity investor in early stage highly experienced leaders in the business in 1994 and has since We take a long term view, with
Slide 3: 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 1994 Joined B.P. Marsh in 2007 and appointed Director in 2011. I
Slide 4: B.P. Marsh & Company Limited Board
B.P. Marsh & Company Limited Board Brian Marsh Dan Topping Alice Foulk Executive Chairman Chief Investment Officer Managing Director 55+ years of experience 15+ years of experience 10+ years of experience Founded B.P. Marsh in 1989 Joined B.P. Marsh in 2007 and appointed Chief Investment Officer
Slide 5: Period Ending Results
Period Ending 31 July 2024 Results Consolidated profit Net Asset Value (NAV) of Change 31 January 2013 to 31 July 2024 before tax of 570 £29.0m £252.9m % Change 31 January 2010 to 31 July 2024 520 BPM share price 489% 470 Six months ended 31 July 2023: £15.6m BPM NAV/share, rebased 387% 420 Price an
Slide 6: Financial Highlights – Period Ended (unaudited)
Financial Highlights – Period Ended 31 July 2024 (unaudited) Net Asset Value (NAV) of NAV per share of Final dividend of Total Shareholder £252.9m 690.8p +9.8% over six 5.36p per Return of +£23.7m over six months months (658.5p* diluted) share (£2.0m) 12.1% +£49.4m over year Paid on 26 July 2024 to
Slide 7: Summary Financial Position – Period Ended 31 July 2024
Summary Financial Position – Period Ended 31 July 2024 £80.2m £0.7m £79.5m 31% 24% Alchemy XPT £19.2m Total Liquidity Cash Balance Treasury Balance 16% Pantheon Net Loans Granted 6% Fiducia 31 Jan 2024: £1.9m 31 Jan 2024: £38.6m 5% £19,159,101 Devonshire 31 Jan 2024: £28.9m 5% Ai Marine 4% Denison P
Slide 8: Performance: Net Asset Value (NAV)
Performance: Net Asset Value (NAV) £250m Full Year Half Year NAV: £252.87m £252,873,000 NAV: £229.17m £250m £229,171,000 £99.5m £200m 9.7% average growth Net Cash/Assets £203.45m Net Cash/Assets £63.8m £189.54m £200m £179.77m £166.61m £150m £154.98m £165.4m £149.91m £150m £142.63m £153.4m £136.90m £
Slide 9: Dividend Payments
Dividends £4.50 M £30.0M The Group paid an interim dividend of £1.0m in In aggregate: £24.8m March 2024 £4.00 M __ Following the completion £25.0M of the sale of Paladin £3.50 M February 2017: March 2024: Holdings Limited/CBC UK Realisation of Besso Realisation of Paladin £20.8M Limited, the Group p
Slide 10: Disposal: Paladin Holdings Limited / CBC UK Limited
Disposal: Paladin Holdings Limited / CBC UK Limited (“CBC") On 22 March 2024, the Group completed the sale of Paladin Holdings Limited, the holding company of CBC, to Specialist Risk Group Limited The Group originally invested £3,500 in Paladin/CBC Sale of Paladin/CBC: £44.0m alongside loan funding
Slide 11: Portfolio Realisation Highlights
Portfolio Realisation Highlights Date of Date of Equity Equity Investee Company Jurisdiction Investment Disposal Investment Proceeds IRR Uplift in Equity Proceeds 542% £120m for Highlighted Disposals UK 17.02.17 22.03.24 £3,500 £44,015,762 47.79% £100m £104,144,878 £80m UK 13.08.14 22.05.23 £15,126,
Slide 12: New Investment – Devonshire UW Limited
New Investment – Devonshire UW Limited (“Devonshire”) NEW INVESTMENT Investment Date A Managing General Agency March 2024 specialising in underwriting transactional liability risks globally, excluding the US Equity Stake 30% “We are excited to enter into this Cost of Equity Founded by four Provides
Slide 13: Post-Period End New Investment – CEE Specialty s.r.o.
Post-Period End New Investment – CEE Specialty s.r.o. (“CEE”) NEW INVESTMENT Investment Date CEE, an underwriting agency, September 2024 focuses on marine hull, bonds and liability insurance, Equity Stake targeting business in Central 44% and Eastern Europe “We are delighted to have B.P. Marsh Cost
Slide 14: Post-Period End New Investment – Volt UW Limited
Post-Period End New Investment – Volt UW Limited (“Volt Underwriting”) NEW INVESTMENT Investment Date Volt Underwriting is an agency October 2024 specialising in energy insurance in both the renewable and non- Equity Stake renewable sectors 25.5% “We look forward to working with B.P. Cost of Equity
Slide 15: Bridging the Gap
Bridging the Gap B.P. Marsh specialises in providing early- With the support of B.P. Marsh, these stage finance, investing in businesses with businesses develop over time achieving an enterprise value of between £0 and c. considerable growth in value £25m These investments then attract the int
Slide 16: New Investment Origination
New Investment Origination New Investment Opportunities to 31 July Our key investment Personal 2024, by sector sourcing channels Connections Direct Fiducia was founded by a long A direct opportunity arose from standing contact of B.P. Marsh. the CEO of Pantheon Speciality, InsurTech The investment o
Slide 17: Portfolio Overview as at 31 July 2024
Portfolio Overview as at 31 July 2024 32% XPT 21% Pantheon 15% ATC 11% LPR 18% SSRU 4% 3% Fiducia LEBC £47.6m 14 3% Sterling Total Invested Number of Active Investments 1% SAGE £153,446,000 £153.4m 1% Ag Guard 1% 0% ARB Verve PORTFOLIO VALUE as at 31 July 2024 £19.2m Equity Value of Portfolio Loans
Slide 18: Investment Summary – ATC Insurance Solutions
Investment Summary – ATC Insurance Solutions PTY Limited ("ATC") CURRENT INVESTMENT Investment Date A Managing General Agency with At investment, ATC produced GWP of July 2018 a specialism in Accident & Health, Construction & Engineering, Trade AU$ 61m Pack, Sports and niche motor insurance ATC curr
Slide 19: Investment Summary – Pantheon Specialty Group
Investment Summary – Pantheon Specialty Group Limited (“Pantheon") CURRENT INVESTMENT Investment Date Pantheon is an independent Current valuation represents a June 2023 specialist broker with the team recognised as leading London Market Casualty brokers, 48% Equity Stake specialising in complex lia
Slide 20: Investment Summary – Lilley Plummer Risks
Investment Summary - Lilley Plummer Risks Limited ("LPR") CURRENT INVESTMENT Investment Date Marine broker, who has expanded Current valuation represents a October 2019 its product offering into several niche and diverse areas, including Political Violence and Terrorism, 27.4% Equity Stake North Ame
Slide 21: Investment Summary – XPT Group LLC
Investment Summary – XPT Group LLC ("XPT") B.P. Marsh originally invested XPT in numbers: GWP Growth (XPT Owned) 2024: Flood Risk Solutions £4.8m in June 2017 • 2024 forecast Gross Written B.P. Marsh Value B.P. Marsh invested Premium of over US$900m 2023: Cal Inspection Bureau, a further £0.8m A fur
Slide 22: Shareholder Returns – Dividend & Share Buy-Backs
Shareholder Returns – Dividend & Share Buy-Backs 2024 Share Buy-Back It is the Board’s ongoing aim to strike a balance between long term capital growth and providing meaningful returns to Shareholders. Programme in the Period New Share Buy-Back Policy £24.8m in dividends proposed to be distributed s
Slide 23: Reducing the Discount between Share Price and NAV per Share
Reducing the Discount between Share Price and NAV per Share The Group is committed to actively The Group announced its reducing the discount to NAV, appointment of Singer Capital 700p ensuring the market valuation Markets on 17 September as joint more accurately reflects the full corporate broker al
Slide 24: Summary
Summary B.P. Marsh’s expertise and experience puts us in a prime position to support Through an extensive network of Net Asset Value: brokers, insurers, and investors, SME financial intermediaries to reach the next level we have global coverage to find the right opportunities £252.9m Profit Before T
Slide 25: Appendices
Appendices 1 Loan Portfolio 26 2 International Portfolio 27 3 Portfolio Overview 28 4 Insurance Intermediary Overview 32 5 Investment Model and Approach 33 6 Market Analysis 36 7 MGA and Broker Investment Breakdown 37 8 Financials 39 9 Minority Investor Protections 42 10 Environmental, Social & Gove
Slide 26: Loan Portfolio
Loan Portfolio Investment 31 July 2024 (£'000) 31 January 2024 (£'000) 31 July 2023 (£'000) Ag Guard 615 621 653 Ai Marine 875 500 - Alchemy 6,000 6,000 - Brown & Brown 469 524 - Denison and Partners 670 670 670 Devonshire 990 - - Fiducia 1,191 1,481 1,771 LEBC - 3,300 3,000 Paladin (CBC) - 5,901 5,
Slide 27: Our Current International Portfolio
Our Current International Portfolio B.P. Marsh’s international strategy is focused on areas where we see: • Sufficient opportunity for business Canada: US: Stewart Specialty Risk Europe: development in partnership with a XPT Group LLC Underwriting Ltd CEE Specialty s.r.o London-based investor SAGE P
Slide 28: Portfolio as at 31 July 2024
Portfolio as at 31 July 2024 Agri Services Company PTY Limited • Investment date: July 2019 Shareholding: 41.0% • Ag Guard is an Australian-based MGA which provides insurance to the Agricultural Sector Ai Marine Risk Limited • Investment date: December 2023 (through Dempsey Group Limited) Shareholdi
Slide 29: Portfolio as at 31 July 2024 Continued
Portfolio as at 31 July 2024 Continued Criterion Underwriting (Pte) Limited • Investment date: July 2018 Shareholding: 29.4% • Criterion is a Singapore-based Managing General Agency Devonshire UW Limited • Investment date: March 2024 Shareholding: 30.0% • Devonshire is a London-based Underwriting Ag
Slide 30: Portfolio as at 31 July 2024 Continued
Portfolio as at 31 July 2024 Continued Lilley Plummer Holdings Limited • Investment date: October 2019 Shareholding: 28.4% • Lilley Plummer Risks is an independent Lloyd's broker that provides a wide array of offerings in several diverse and niche areas Pantheon Specialty Group Limited • Investment
Slide 31: Portfolio as at 31 July 2024 Continued
Portfolio as at 31 July 2024 Continued Sterling Insurance PTY Limited • Investment date: June 2013 (through Neutral Bay Investments Limited) Shareholding: 19.7% • Sterling is a Sydney-based specialist underwriting agency offering a range of insurance solutions within the Liability sector, specialisi
Slide 32: Insurance Intermediary Overview
Insurance Intermediary Overview B.P. Marsh’s insurance intermediary portfolio companies are budgeting to produce c. £1.34bn of aggregate Gross Written Premium (GWP) in 2024 The Group’s broking investments are budgeting to place c. £739m of GWP, producing c. £69m of brokerage in 2024, accessing speci
Slide 33: Investment Model
Investment Model Up To £5m Specialist Investor Relationship Driven Initial Investment B.P. Marsh specialises in early stage We see people as key to each investment and We take on investments which are smaller than and SME financial services businesses we build relationships as well as businesses oth
Slide 34: Investment Approach
Investment Approach Flexibility Long-Term View Value Add We’re proud to have a uniquely flexible We bring specialist experience and We have a long-term approach to our approach to investment and exit sector-specific expertise and knowledge investment partnerships WE ARE FLEXIBLE WE BRING MORE THAN J
Slide 35: Investment Process
Investment Process 1 2 3 4 Initial Assessment Due Diligence and Completion Post Transaction Support Exit Strategy • Strong network of industry contacts • Consider exit strategy when the business • Work to flexible timelines • Business plan implemented brings new opportunities is ready to move to the
Slide 36: Market Overview
Market Overview B.P. Marsh continues to monitor trends in the rate of pricing for GLOBAL FINANCIAL insurance business placed in the areas where the portfolio operates GLOBAL PROPERTY GLOBAL CASUALTY & PROFESSIONAL Global commercial insurance rates were flat in the second quarter to 2024. This is the
Slide 37: Overview: Managing General Agencies ("MGAs") Investments
Overview: Managing General Agencies ("MGAs") Investments Internal rate Multiple on Date of Equity % at 31 Cost of Valuation at % of NAV at of return to Invested B.P. Marsh’s MGAs are budgeting to MGAs Investment Jurisdiction July 2024 Investment 31 July 2024 31 July 2024 31 July 2024 Capital under
Slide 38: Overview: Broking Investments
Overview: Broking Investments Since inception, much of B.P. Marsh’s growth has been underpinned by a Internal rate Multiple on successful track record of investing in Equity % at Cost of Valuation at % of NAV at of return to Invested brokers, both in the Lloyd’s and London Brokers Date of Investme
Slide 39: Consolidated Statement of Financial Position (IFRS)
Consolidated Statement of Financial Position (IFRS) at 31 July 2024 31 July 2024 31 July 2023 31 January 2024 (Unaudited) (Unaudited) (Audited) Tangible and intangible assets 59 72 65 Right of use asset 425 590 507 Investments at fair value – Equity Portfolio 153,446 185,815 165,382 Debtors / Loans
Slide 40: Consolidated Statement of Comprehensive Income (IFRS)
Consolidated Statement of Comprehensive Income (IFRS) at 31 July 2024 Unaudited 6 months to Unaudited 6 months to Audited year to 31 July 2024 £'000 31 July 2023 £'000 31 January 2024 £'000 Gains on investments (realised and unrealised) 29,664 14,714 43,674 (Provision against) / amounts recovered fr
Slide 41: Consolidated Statement of Cash Flows (IFRS)
Consolidated Statement of Cash Flows (IFRS) at 31 July 2024 Unaudited six months to Unaudited 6 months to Audited year to 31 July 2024 £'000 31 July 2023 £'000 31 January 2024 £'000 Net cash (used by)/from operating activities (772) 213 (1,075) FX Movement (3) (49) (53) Taxation (34) (33) (33) Purch
Slide 42: Minority Investor Protections
Minority Investor Protections B.P. Marsh believes that day-to-day operational control of The Group has an extensive track record of working within the business is the domain of the executive management companies as partners and places significant emphasis team. However, our position is well prot
Slide 43: Environmental, Social and Governance Policy
Environmental, Social and Governance Policy B.P. Marsh is committed to being a responsible investor with Environmental, Social The results revealed that many of our portfolio companies shared our view of the and Governance (ESG) focused principles incorporated throughout our investment importanc
Slide 44: Key Shareholders as at September 2024
Key Shareholders as at 30 September 2024 Directors Major Shareholders (>3%) Brian Marsh OBE 38.2% PSC UK Pty Limited 19.90% Alice Foulk Less than 0.5%* Mr. Martin MacLeish 5.04% Daniel Topping Less than 0.5%* Hargreaves Lansdown Asset Mgt 4.79% Francesca Chappell Less than 0.5%* Interactive Investor
Slide 45: Share Option Plan (SOP) and Joint Share Ownership Plan (JSOP)
Share Option Plan (SOP) and Joint Share Ownership Plan (JSOP) On 6 September 2023 the Board adopted a A 3.9% three-year JSOP was created in June In October 2023 the 1,206,888 allocated new nil-cost Share Option Plan for selected 2018 within an Employee Benefit Trust to Trust shares were granted voti
Slide 46: 4 Matthew Parker Street London SW1H 9NP Telephone: 020 7233 3112
4 Matthew Parker Street London SW1H 9NP Telephone: 020 7233 3112 http://www.bpmarsh.co.uk/ Joint Corporate Broker Singer Capital Markets Telephone: 020 7496 3000 Nominated Adviser & Joint Corporate Broker Panmure Liberum Telephone: 020 7886 2500 Financial PR Tavistock Telephone: 020 7920 3150 © 2024
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