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B.P. Marsh & PartnersAnnouncement

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RNS Number : 0810U  B.P. Marsh & Partners PLC  24 February 2026

24 February 2026

 

B.P. Marsh & Partners Plc

("B.P. Marsh", the "Company" or the "Group")

 

"Continued strong performance delivering increased returns to shareholders"

 

Trading Update Year Ended 31 January 2026

 

B.P. Marsh & Partners Plc (AIM: BPM), the specialist venture capital
investor in early-stage financial services businesses, provides an update on
trading for the Group's financial year ended 31 January 2026.

 

Highlights

 

·    Continued strong portfolio performance

o  Eight new investments completed in specialist sectors of the financial
services space

o  Two disposals completed, generating £30.7m upfront proceeds from £1.9m
invested capital

o  Robust pipeline of new opportunities

·    Group funds of £49.5m at 31 January 2026 (31 January 2025: £74.1m)

·    £8.0m dividends paid to shareholders in FY2026 totalling 21.64p per
share

·    Intention to pay dividends of £13.0m in FY2027 and a minimum of
£5.0m in FY2028

·    Annual results for FY2026 to be announced on 27 May 2026

 

Liquidity and Loan Portfolio

 

Group funds were £49.5m as at 31 January 2026 (31 July 2025: £52.6m, 31
January 2025: £74.1m) and the Group remains debt-free.

 

During the financial year, the Group made realisations of £30.7m in respect
of its disposals of SSRU and Sterling.

 

The Group invested £37.8m in equity funding into the portfolio, £27.8m of
which was new investments, and £10.0m follow-on funding into the existing
portfolio.

 

The Group's loan portfolio balance increased to £40.8m at 31 January 2026
from £27.6m at 31 January 2025.

 

Disposals

 

During the financial year, the Group announced the completion of two
disposals:

 

Stewart Specialty Risk Underwriting Limited ("SSRU") (October 2025): The Group
delivered an internal rate of return of 89.9% on the disposal of its
investment in SSRU, a leading Canadian Managing General Underwriter, to Ryan
Specialty, LLC.

 

Sterling Insurance Pty Limited (June 2025): The Group delivered an internal
rate of return of 8.8% on the disposal of its investment in Sterling to ATC
Insurance Solutions Pty Limited, a Group holding. The Group took equity as
consideration from this transaction allowing the Group to increase its
shareholding in ATC from 25.6% to 27.0%.

 

New Investments

 

During the financial year, the Group announced eight new investments:

 

iO Finance Partners Topco Limited (April 2025): The Group subscribed £10.0m
for an 8% shareholding in iO Finance, a UK-based alternative financing
platform for SMEs.

 

Oneglobal Broking Holdings Limited (September 2025): The Group subscribed
£10.0m for a Cumulative Convertible Preferred Shareholding which will, on
conversion, equate to a 10% fully diluted shareholding. Oneglobal specialises
in marine, property, aviation, financial lines, energy and casualty,
internationally.

 

Sodalis Capital Limited (November 2025): The Group invested £5.3m for
Cumulative Preferred Shares representing approximately 26.67% of Sodalis,
alongside Alliant Insurance Services, Inc. and Sodalis-founder Colin Thompson.
Sodalis is pursuing a buy-and-build strategy in international underwriting and
wholesale broking across the UK, Europe and the Middle and Far East.

 

Cameron Specialty HoldCo Limited (June 2025): The Group acquired a 27%
shareholding in London-based underwriting agency, Cameron Specialty, and
agreed funding of up to £1.7m via a combination of equity and loan facility.

 

Gambit Risk Finance LLC (August 2025): The Group committed up to US$5.0m
(US$1.9m funded on completion) for an 8.25% preferred equity shareholding in
Gambit Re, a newly formed reinsurance vehicle supporting XPT Group LLC ("XPT")
in which the Group owns 30.33%.

 

XPT Producer Acquisition Co LLC (September 2025): The Group subscribed for a
35% preferred equity shareholding and committed up to US$12.5m in loan funding
(US$3.0m drawn at completion). XPT Producer Co has been established to recruit
and incubate experienced, revenue-generating producers, accelerating XPT's
growth strategy.

 

Amiga Speciality Holdings Limited (June 2025): The Group acquired a 49%
shareholding in Amiga, a newly established specialty underwriting business,
for a nominal consideration and provided a five-year £10.0m loan facility.

 

Salus Capital Partners Limited (September 2025): The Group acquired a 35%
Cumulative Preferred Ordinary shareholding, providing funding of up to £2.0m
via a combination of equity and a loan facility. Salus is a start-up insurance
intermediary group specialising in Professional Indemnity insurance.

 

Follow-On Funding

 

Pantheon Specialty Group Limited: In June 2025, the Group acquired a further
2% stake for £5.5m, increasing its shareholding from 37% to 39%. In
September 2025, the Group then provided additional loan funding to support
Pantheon's acquisition of a 25% shareholding in Fraction Insurance Brokers
Asia Limited, a Hong Kong-based specialist broker focused on digital asset
insurance.

 

New Business Opportunities

 

The Group continues to see strong levels of inbound interest, receiving 67 new
business enquiries in FY2026 (FY2025: 63). This sustained origination activity
reflects the continued appeal of the Group's partnership-led approach and deep
sector expertise to high-quality management teams across its target markets.
It also reflects the strength of the Group's reputation and brand, which
continue to attract attractive new opportunities.

 

The Group is currently assessing nine prospective opportunities, each aligned
with B.P. Marsh's disciplined investment strategy and long-standing focus on
insurance and broader financial intermediary businesses.

 

Dividend and Share Buy-Back Programme

 

In line with the continued strong performance of realisations from the Group's
portfolio, in FY2026, a total of £8.0m was paid to shareholders in dividends
via an interim, final and special payment (£4.0m in FY2025, £2.0m in FY2024,
£1.0m in FY2023 and, since flotation, £42.7m in aggregate).

 

The Company has subsequently announced the payment of the following dividends
in FY2027:

 

·    an interim dividend of 6.98p per ordinary share (£2.5m in aggregate)
in February 2026 to all shareholders on the register on 30 January 2026, an
increase of 2.91% on the interim dividend paid in February 2025; and

·    a special dividend of 22.33p per ordinary share (£8.0m in aggregate)
in March 2026 to all shareholders on the register on 6 March 2026, following
consideration received from the disposal of SSRU.

 

The Company intends to pay a final dividend of £2.5m in FY2027, bringing
total dividends payable for FY2027 to £13.0m. The Board retains discretion to
recommend a higher or lower final dividend for FY2027, for example in the
event of significant realisations or capital commitments.

 

The Company intends to pay dividends of not less than £5.0m in FY2028,
however this figure will remain subject to review and potential upward
revision in the event of significant realisations.

 

During FY2026, the Company repurchased 277,583 shares for £1.9m at an average
price of 676.7p per share, which are currently held in Treasury.

 

These dividends and share buy-backs reflect the Group's strong cash generation
and the Board's continued commitment to delivering regular and meaningful
returns to shareholders, in line with the Group's capital allocation policy.

 

Insurance Market Outlook

 

The Group continually monitors key trends across the wider risk transfer
market, with particular focus on premium rate developments and mergers &
acquisitions ("M&A") activity. Downward pressure on reinsurance pricing
and heightened consolidation remain the most relevant sector-wide dynamics for
B.P. Marsh's portfolio companies.

 

While capacity remains abundant and the sector continues to attract
institutional capital, overall profitability within insurance distribution
remains broadly stable, especially within the more specialist segments in
which the Group invests.

 

The fee- and commission-based revenue of brokers and MGAs provide a degree of
insulation from rating pressures. In addition, rate volatility in specialist
risk segments, where many of the Group's portfolio companies operate, has
typically been more moderate. The Board, therefore, remains confident in the
resilience of underlying revenue generation. The Group works closely with
investee management teams to ensure their businesses remain robust and well
positioned to mitigate emerging risks.

 

Consolidation across the insurance market appears to be accelerating into
2026, potentially driven by pricing dynamics and boards pursuing inorganic
growth. Recent high-profile transactions underline this trend. In prior waves
of consolidation, the Group has benefited as entrepreneurial teams seek to
establish or grow independent platforms outside consolidating organisations.
The Board therefore views ongoing M&A activity as a source of opportunity,
both within the existing portfolio and in respect of new investments.

 

Notice of Results

 

The Company will announce its audited results for the year ended 31 January
2026 on 27 May 2026.

 

 

 For further information on B.P. Marsh, its strategy and current portfolio,
 please visit www.bpmarsh.co.uk (http://www.bpmarsh.co.uk) or contact:

 B.P. Marsh & Partners Plc                                  +44 (0)20 7233 3112

 Dan Topping / Alice Foulk

 Nominated Adviser & Joint Corporate Broker:                +44 (0)20 7886 2500

 Singer Capital Markets Advisory LLP

 Charles Leigh Pemberton / Asha Chotai / James Todd

 Joint Corporate Broker:                                    +44 (0)20 7597 5970

 Investec Bank plc

 Christopher Baird / David Anderson / Maria Gomez de Olea

 Financial PR & Investor Relations:                         bpmarsh@tavistock.co.uk (mailto:bpmarsh@tavistock.co.uk)

 Tavistock                                                  +44 (0)20 7920 3150

 Simon Hudson / Katie Hopkins / Kuba Stawiski

 

Forward-looking statements

This announcement may include statements, beliefs or opinions that are, or may
be deemed to be, "forward-looking statements". These forward-looking
statements may be identified by the use of forward-looking terminology,
including the terms "believes", "estimates", "plans", "projects",
"anticipates", "targets", "aims", "continues", "expects", "intends", "hopes",
"may", "will", "would", "could" or "should" or, in each case, their negative
or other variations or comparable terminology, or by discussions of strategy,
plans, objectives, goals, future events or intentions. No representation or
warranty is made that any of these statements or forecasts will come to pass
or that any forecast results will be achieved. Forward-looking statements may
and often do differ materially from actual results. Any forward-looking
statements contained in the announcement speak only as of their respective
dates, reflect B.P. Marsh's current view with respect to future events and are
subject to risks relating to future events and other risks, uncertainties and
assumptions relating to B.P. Marsh's business, results of operations,
financial position, liquidity, prospects, growth and strategies.

 

Except as required by any applicable law or regulation, B.P. Marsh expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained in this announcement or
any other forward-looking statements it may make whether as a result of new
information, future developments or otherwise.

 

- Ends -

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