MIDAS STOCK TIPS UPDATE: Shares in our tip BP Marsh have almost doubled in just over a year

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

His dedication is paying off, not just for him, as a 38 percent shareholder, but for every investor in the company.

BP Marsh invests in emerging insurance companies, acquiring small stakes of up to £5 million each, allowing these companies to grow and reap the rewards when sold to larger players. Marsh has worked in the insurance industry for almost 60 years and his father was in the market before him, working on the old floor of Lloyd’s of London in the City.

Networks are important in this sector and with a new generation of experienced employees, BP Marsh is known for helping young companies thrive and grow.

Recent transactions prove the point. In 2019, BP Marsh bought a 30 percent stake in new brokerage firm Lilley Plummer Risks for £1 million, with £700,000 repaid in 2023, and late last month Marsh sold his stake for £21.65 million.

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

Currently BP Marsh has around £100m on its balance sheet and has just told investors that it will increase annual dividend payments from £4m to £5m in 2026 and 2027, which equates to 13.4 per annum share per year.

The group has also pledged to give shareholders a further £5m on top of any dividends paid in 2028.

Business is going smoothly. BP Marsh doesn’t have to look for deals. Entrepreneurs come to the company knowing it has a reputation for supporting small businesses. 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 both renewable and fossil fuels.

Marsh itself does not take any insurance risk. Instead, his company focuses on intermediaries, such as brokers and insurance companies.

That means the company is less vulnerable to losses from events like Hurricane 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 a rise in commercial insurance prices.

Midas judgment: Midas recommended BP Marsh in June 2023, when the shares were at £3.76. Since then they have almost doubled to £7. Investors can now choose to take some profits, but it would be unwise to sell out completely. Generous dividends are on the horizon and Marsh shows no signs of slowing down. A strong grip.

Traded on: Goal ticker: BPM Contact: bpmarsh.co.uk