MIDAS SHARE TIPS UPDATE: Our BP Marsh board shares have almost doubled in just over a year

As an 83-year-old CEO, Ken Davy is unusual, but he’s certainly not the only octogenarian in the stock market. BP Marsh chairman Brian Marsh is also 83, smart as a tack and still comes to work between 7am and 7.15am four days a week.

His dedication pays dividends, not only for him, as a 38 percent shareholder, but for all investors in the business.

BP Marsh invests in emerging insurance companies, taking small stakes for up to £5 million each, helping these companies grow and reaping the benefits when they are sold to larger players. Marsh has spent almost 60 years in the insurance industry and his father was in the market before him, working on the former Lloyd’s of London floor in the City.

Networks are important in this industry and, with a new generation of experienced staff, BP Marsh is well known for helping young businesses thrive and grow.

Recent transactions demonstrate this. In 2019, BP Marsh bought a 30 per cent stake in new brokerage Lilley Plummer Risks for £1m, £700,000 was repaid in 2023 and late last month Marsh sold its stake for £21.65m .

Earlier this year, the group completed another sale, this time for £44m, after an initial investment of just over £4m seven years ago.

Today, BP Marsh has around £100m on its balance sheet and has just told investors it will increase annual dividend payments from £4m to £5m in 2026 and 2027, which is equivalent to 13.4 shares per year.

The group has also committed to giving shareholders a further £5m on top of dividends paid in 2028.

Business is good. BP Marsh doesn’t have to look for deals. Entrepreneurs come to the company knowing its reputation as a small business sponsor. There have been five transactions this year alone, including two last month: Lloyd’s of London’s new broker, SRT, and Volt, which specializes in energy insurance for fossil fuel and renewable plants.

Marsh does not assume the insurance risk himself. Instead, his company focuses on intermediaries, such as brokers and underwriting agencies.

That means the company is less vulnerable to losses from events like hurricanes Helene and Milton, which devastated parts of the United States earlier this year.

Marsh’s portfolio could even benefit from these catastrophes, if they cause commercial insurance prices to rise.

Midas Verdict: Midas recommended BP Marsh in June 2023, when the shares cost £3.76. Since then they have almost doubled to 7 pounds. Investors may choose to take some profits now, but it would be unwise to sell them completely. Generous dividends are expected and Marsh shows no signs of slowing down. A strong grip.

Traded in: Aim Heart: BPM Contact: bpmarsh.co.uk