B.P. Marsh & Partners, the specialist venture capital investor in early-stage financial services businesses, has suggested it sees ongoing mergers & acquisitions (M&A) activity as a source of opportunity, both within its existing portfolio and in respect of new investments, following a strong financial year ended 31 January 2026.
B.P. Marsh delivered continued strong portfolio performance during the year, with eight new investments completed in specialist sectors of the financial services space, while two disposals generated £30.7m in upfront proceeds from £1.9m of invested capital.
The firm also reports a robust pipeline of new opportunities, receiving 67 new business enquiries in FY2026, up from 63 in FY2025.
“This sustained origination activity reflects the continued appeal of the Group’s partnership-led approach and deep sector expertise to high-quality management teams across its target markets. It also reflects the strength of the Group’s reputation and brand, which continue to attract attractive new opportunities,” B.P. Marsh said.
Group funds stood at £49.5m as at 31 January 2026, compared with £74.1m at 31 January 2025, and the firm remains debt-free.
During FY2026, £8m of dividends were paid to shareholders, and the Board of B.P. Marsh has stated its intention to pay £13m in FY2027 and at least £5m in FY2028.
Providing an outlook on the insurance sector, B.P. Marsh observed that it continually monitors key trends across the wider risk transfer market, with particular focus on premium rate developments and M&A activity.
The firm continued, “Downward pressure on reinsurance pricing and heightened consolidation remain the most relevant sector-wide dynamics for B.P. Marsh’s portfolio companies.
“While capacity remains abundant and the sector continues to attract institutional capital, overall profitability within insurance distribution remains broadly stable, especially within the more specialist segments in which the Group invests.
“The fee- and commission-based revenue of brokers and MGAs provides a degree of insulation from rating pressures. In addition, rate volatility in specialist risk segments, where many of the Group’s portfolio companies operate, has typically been more moderate.
“The Board, therefore, remains confident in the resilience of underlying revenue generation. The Group works closely with investee management teams to ensure their businesses remain robust and well-positioned to mitigate emerging risks.
“Consolidation across the insurance market appears to be accelerating into 2026, potentially driven by pricing dynamics and boards pursuing inorganic growth. Recent high-profile transactions underline this trend.
“In prior waves of consolidation, the Group has benefited as entrepreneurial teams seek to establish or grow independent platforms outside consolidating organisations. The Board therefore views ongoing M&A activity as a source of opportunity, both within the existing portfolio and in respect of new investments.”
