BP Marsh launches special shareholder return following Paladin sale

By Ryan Hewlett

April 17 - (The Insurer) - Specialist UK insurance investor BP Marsh has announced a special return to shareholders following the receipt of further cash proceeds from the successful sale of its shareholding in Paladin, the parent of Lloyd’s intermediary CBC, to private equity-backed Specialist Risk Group.

London-listed BP Marsh said in a stock exchange filing after markets on Wednesday that it would return a total of 3.0 million pounds ($3.98 million) to shareholders via a special dividend of 8.08 pence per share.

The one-off special dividend follows the receipt of 9.17 million pounds from the sale of the insurance-focused investor’s shareholding in Paladin.

BP Marsh first revealed plans to sell its 43.8% shareholding in Paladin to SRG in December 2023 for 42.1 million pounds, net of all transaction costs, plus repayment in full of its 5.9 million pound loans to Paladin, for an aggregate cash receipt of 48 million pounds.

The deal, completed in April last year, also entitled BP Marsh to receive its proportion of any net working capital adjustment, and a deferred consideration of up to 17.8 million pounds in cash based upon 20% Ebitda growth above existing targets in FY24 and FY25.

BP Marsh said in the stock exchange filing that the special dividend of 8.08 pence per share will be payable on May 30 to shareholders on the register as of May 2. The associated ex-dividend date will be May 1.

The firm owns stakes in several intermediaries including Pantheon Specialty, ATC and Verve. It said it remains intent on paying a total dividend of 5.0 million pounds in respect of the financial year ending 31 January 2026.

Shares in BP Marsh, listed on the AIM segment of the London Stock Exchange, rose more than 58% over 2024 and are currently trading at 670.00 pence apiece, handing the firm a market capitalisation of 248.52 million pounds.

BP Marsh is forecast to report results for the year to January 31, 2025 on June 10.