B.P. Marsh & Partners PLC: Investor Report on Annual Results for the Year Ended 31 January 2026

B.P. Marsh & Partners delivered another year of steady net asset value growth, active capital deployment and meaningful shareholder distributions in the year ended 31 January 2026. For a specialist investor that has built its reputation on patient minority stakes in early-stage financial services businesses, the latest results reinforce a familiar pattern: disciplined execution, selective backing of entrepreneurial management teams and a willingness to hold investments long enough for value to compound.

The headline numbers are strong. Net asset value rose to £360.2 million, up 10.3% over the year. The equity portfolio reached £273.8 million, and total shareholder return came in at 12.8% once dividends are included. The group also completed eight new investments, made two disposals and ended the year with substantial available capital for further deployment.

Yet the real significance of the year lies in what these numbers say about the business model. B.P. Marsh continues to operate in a niche that sits between venture capital and traditional mid-market private equity. It typically provides up to £5 million of initial capital for minority stakes of 20% to 40% in small and medium-sized financial services firms, with a particular focus on insurance brokers and managing general agencies, or MGAs. These are businesses that often struggle to access suitable institutional capital at formation or in the earliest growth phase. B.P. Marsh aims to bridge that gap.

Table of Contents

• A specialist model built for patient capital
• Financial performance: NAV growth, profit and capital deployment
• The loan book is becoming a more material part of the capital structure
• Dividend policy and shareholder returns remain central
• Portfolio composition: MGAs and brokers remain the core engines of value
• Pantheon: the flagship growth story
• XPT and ATC: proof that the model also works at scale
• Realisations show how paper value turns into cash
• Deal flow remains relationship-led and proprietary
• Independent brokers, market conditions and AI
• Critical issues investors should keep in view
• Outlook: more of the same, by design
• FAQ

A specialist model built for patient capital

Since inception, the company has invested in 70 businesses and currently holds 24 active investments. It has been listed on AIM since 2006 and has developed a clear identity: sector-specialist investing, early-stage entry, minority ownership and long holding periods. Management noted that the average hold period is around 6.4 years, underlining a patient approach that stands apart from many private equity models driven by tighter exit timetables.

This strategy has translated into long-term growth in net asset value. From £40.6 million in 2007, NAV has risen to £360.2 million by January 2026. That equates to an 11% compound annual growth rate over nearly two decades. Importantly, management framed this not as the result of one-off wins, but as the consequence of doing the same thing well over a long period.

The value proposition is straightforward:

• Back specialist management teams early
• Provide capital where alternatives are limited
• Support growth without taking control
• Realise gains selectively and recycle capital

That framework remains central to understanding the latest annual results.

Financial performance: NAV growth, profit and capital deployment

For the year ended 31 January 2026, B.P. Marsh reported:

• NAV of £360.2 million, up £33.8 million or 10.3%
• Profit for the year of £49 million
• Equity portfolio value of £273.8 million
• Available capital of £49.5 million at year end
• Total dividends paid of £8 million
• Total shareholder return of 12.8%

The increase in NAV was driven by a mix of higher portfolio valuations and realised gains on disposals, offset by dividends paid and share buybacks. In per share terms, NAV reached £10.09, or £9.60 on a diluted basis.

One notable feature of the year was the scale of investment activity. Eight new investments were completed during the period, and two further investments were made after the year end into Nine Edge Wealth and Ventura Risk Partners. That level of deployment reflects confidence in the pipeline, but it also reduced cash balances from £74.1 million to £49.5 million by the end of the year.

Even so, liquidity remains healthy. Cash is held with major institutions in short-term and instant access deposit accounts, with an average treasury return of 3.3% during the year.

The loan book is becoming a more material part of the capital structure

Alongside equity investing, B.P. Marsh uses loan capital to support portfolio businesses. As at 31 January 2026, the loan book stood at £38.8 million, up £13.2 million from the prior year. The average interest rate received during the year was 8.8%.

That figure had risen further to £51.9 million by 26 May, indicating continued deployment post year end.

This matters for two reasons. First, loans can provide an attractive income stream in addition to equity upside. Second, they allow the group to support businesses in a flexible way beyond the initial shareholding. In practice, this can improve capital efficiency for both B.P. Marsh and the portfolio company.

Dividend policy and shareholder returns remain central

B.P. Marsh continues to emphasise cash returns to shareholders. During the year, it paid £8 million in dividends, equal to 21.64p per share. Looking ahead, the company expects to distribute a further £13 million by the end of the financial year ending January 2027, and intends to pay a further £7 million in the year ending January 2028, subject to board approval.

If delivered, total dividends paid since flotation would reach £44.7 million by January 2028. Management highlighted that by January 2027 alone, cumulative dividends would amount to 107.1p per share, equivalent to 76.5% of the original flotation price of 140p.

The company also repurchased just over one million shares during the year for £6.9 million at an average price of 659p. This reflects an effort to address the discount between share price and NAV, though the scale of buybacks has prompted questions from shareholders about whether a more aggressive approach may be warranted.

Portfolio composition: MGAs and brokers remain the core engines of value

The portfolio remains heavily concentrated in insurance distribution, particularly MGAs and brokers.

Managing General Agencies

B.P. Marsh’s 11 MGA investments were collectively valued at £72.6 million on a cost base of £16.8 million, representing a 4.3x multiple on invested capital. These companies are expected to underwrite more than £850 million of aggregate gross written premium in 2026 and generate over £90 million of commission income.

Management clearly sees MGAs as a core area of competitive advantage. The attraction is understandable: specialist underwriting expertise, scalable business models, strong cash generation and a market where access to insurer capital remains constrained.

Key examples include:

• ATC Insurance Solutions, valued at £37.7 million
• Fiducia, the longest-standing MGA investment with a reported 32.4x invested capital multiple
• Vault, a recent investment made at nominal cost and already valued at £4.25 million

Broking businesses

The six broking investments were valued at £182 million on a cost of £59.2 million, a 2.1x multiple overall. These businesses are budgeting to place more than £1.5 billion of gross written premium in 2026 and generate over £140 million of brokerage income.

The standout holding is Pantheon, valued at £107 million against a cost of £27.3 million, with an internal rate of return of 150.4% at the year end. XPT, the group’s US wholesale platform, was valued at £64 million with an IRR of 26.6% since the original 2017 investment.

These two assets now account for a meaningful share of portfolio value, which helps explain why investors continue to focus on valuation methodology and concentration risk.

Pantheon: the flagship growth story

Pantheon has quickly become the most striking illustration of B.P. Marsh’s ability to identify and back high-calibre management teams at an early stage. Founded in 2023, the business has already grown to more than 45 employees across six product lines and generated £24.8 million of revenue and £18 million of adjusted EBITDA in 2025.

At the year end, B.P. Marsh held 39% of Pantheon, later increasing that to 41% after the period end. The holding was valued at £107 million.

What stands out is the pace of value creation. Pantheon moved from start-up to a nine-figure valuation in under three years. The business began with a focus on global casualty and has since expanded into professional lines, property, innovation and technology, delegated authority, insurance premium finance and marine.

Management’s description of Pantheon was telling. It was presented not simply as a fast-growing broker, but as evidence of the company’s niche: modest initial capital, the right entrepreneurial team and the possibility of outsized returns when those pieces align.

XPT and ATC: proof that the model also works at scale

If Pantheon represents rapid early-stage success, XPT demonstrates the compounding power of a larger platform.

B.P. Marsh first invested in XPT in 2017. Today, it holds a 30.5% stake valued at £64 million against £20.2 million of equity cost, alongside nearly £9 million of loan funding. XPT now manages more than US$1 billion of gross written premium, employs over 450 people across more than 30 US offices and has completed 19 acquisitions since formation.

The group highlighted not only revenue and EBITDA growth, but also its own role in supporting governance, systems, cash flow management and controls. That is an important reminder that B.P. Marsh sees itself as more than a passive source of capital.

ATC offers a similar story in Australia. Now the country’s largest independent Lloyd’s coverholder, ATC was first backed in 2018. B.P. Marsh currently holds 27%, valued at £37.7 million against a combined cost of just over £5 million. The business writes over A$200 million of gross written premium and has expanded through acquisitions, including the integration of Sterling Insurance.

Realisations show how paper value turns into cash

One of the strongest parts of the annual results was the disposal track record. Over the last five years, B.P. Marsh has realised eight investments for total proceeds of £178.9 million against aggregate investment of just over £20.6 million. That equates to an 8.7x money multiple.

This matters because private company valuation always attracts scrutiny. Realisations offer hard evidence that carrying values can translate into actual cash.

The most remarkable disposal in the year was Stewart Specialty Risk Underwriting, or SSRU. B.P. Marsh’s equity investment in 2017 was effectively nominal at around £19, supplemented by a loan of roughly £500,000 that was repaid within two years. By the time of exit in December 2025, following acquisition by Ryan Specialty, proceeds totalled £28.3 million. The IRR was 89.9%.

The second disposal, Sterling Insurance, was more strategic than spectacular. B.P. Marsh invested £1.9 million in 2013 and exited via a combination with ATC, receiving £3.11 million in ATC shares. The immediate uplift was more modest, but the transaction strengthened a larger portfolio platform in which B.P. Marsh holds a substantial stake.

There is also an important secondary source of value: deferred consideration. Payments from previous disposals such as LEBC and CBC UK/Paladin continue to come through after completion, adding to long-tail returns.

Deal flow remains relationship-led and proprietary

B.P. Marsh reviewed 61 new investment opportunities during the year, broadly in line with the previous period. The quality of origination appears to be as important as the quantity. Management said 62% of opportunities came through referrals or introductions from its network, while 43% had an international element.

By sector, 75% of opportunities were in insurance distribution and 25% in broader financial services.

This is strategically significant. The company does not want to compete through formal auction processes. Its edge lies in being seen as the preferred long-term minority partner for entrepreneurial founders who want capital without surrendering control.

For readers interested in future company presentations and updates, B.P. Marsh provides registration through its investor registration page.

Independent brokers, market conditions and AI

Management also addressed broader industry themes. On the insurance market, it acknowledged that parts of the market are softening after a period of hard pricing. However, B.P. Marsh believes its early-stage focus offers a degree of insulation. For start-ups, growth is often driven by new business wins rather than simply prevailing market rates.

On independent brokers, the group’s outlook remains constructive. The view is that years of consolidation have created a supply of talented, sometimes disillusioned producers and executives who are willing to build fresh businesses. Smaller brokers also remain appealing because they are relatively capital light and can increasingly use technology to compete effectively.

Artificial intelligence was discussed in notably practical terms. B.P. Marsh does not appear to view AI as an immediate disruptor of insurance broking, underwriting or financial advice. Instead, it sees AI as an operational enabler that can automate administrative work, improve data processing and free up skilled professionals to focus on judgement and relationships.

Three portfolio companies, XPT, Nine Edge Wealth and Vault, are already developing AI tools internally. The group stressed that human verification remains essential for all outputs.

Critical issues investors should keep in view

The results are clearly positive, but several questions remain relevant for investors assessing the next phase of development.

• Discount to NAV: Management believes some discount is inevitable given the private company nature of the portfolio, but also suggested the current discount should be materially narrower. The effectiveness of future buybacks and market communication will remain under scrutiny.
• Valuation transparency: The company does not disclose detailed valuation methodologies for major holdings. Management argues that its realisation record validates a conservative approach, but some investors may still want more granularity.
• Concentration: Pantheon, XPT and ATC are now substantial components of the portfolio. Management is comfortable with concentration in successful assets, but performance in those businesses will disproportionately influence NAV progression.
• Pace of deployment: Eight new investments in one year is a high level of activity. The company suggested future investment levels may settle somewhere between the latest year and prior periods.

These are not signs of weakness. They are the natural questions that arise when a specialist investor matures, grows in scale and accumulates several large winners.

Outlook: more of the same, by design

B.P. Marsh’s forward strategy is not complicated. Management’s own phrasing was effectively to keep “sticking to our knitting”. That means continuing to back strong management teams in specialist markets, staying disciplined on capital allocation and preserving a balance between reinvestment, liquidity and shareholder returns.

There is no suggestion of a strategic reset. If anything, management’s message was that the opportunity set is still expanding. The business has been following the same broad principles for over 30 years, and the latest annual results suggest those principles remain highly relevant.

For a market that often rewards novelty, B.P. Marsh is making a different case. Durable returns can come from specialism, patience and repeatability. The year ended 31 January 2026 offers another example of that proposition working as intended.

FAQ