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Targeting a major chart break-out

Aim-traded insurance sector investment company has delivered another double-digit annual shareholder return, and offers a catalyst for a major chart break-out, too
Targeting a major chart break-out
  • NAV increases 9.5 per cent to record £150m.
  • Equity portfolio increases £12.9m to £131m driven by multiple start-up companies.
  • Dividend per share raised 10 per cent to 2.44p.

Aim-traded insurance sector investment company BP Marsh & Partners (BPM: 310p) has delivered yet another double-digit annual shareholder return for the 2020/21 financial year, buoyed by eye-catching gains on its start-up companies. There are strong reasons to expect the well-run management team to continue to deliver on their 10 per cent net asset value (NAV) growth target, too.

Furthermore, there is a possibility of corporate events that would release liquidity from both of BP Marsh’s largest holdings: Nexus Underwriting, an independent speciality managing general agency (MGA) that has been scaling up through organic growth and acquisition; and IFA group LEBC. BP Marsh’s 17.5 per cent stake in Nexus is held at £40.9m, or almost four times the £11.1m cost of the investment, and the 59.3 per cent stake in LEBC is worth £25m, or double cost. Their combined £66m carrying value accounts for 44 per cent of BP Marsh’s NAV of £150m (416p a share).

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