(Alliance News) - BP Marsh & Partners PLC on Tuesday announced a special payout, a revised dividend policy and a share buyback as it outlined plans for the proceeds from the sale of its stake in Kentro Capital Ltd.
In late May, the London-based venture capital investor in financial services businesses announced it would sell a 19% stake in Kentro for GBP51.5 million cash to US-based insurance intermediary, Brown & Brown Inc.
On Tuesday, BP Marsh said it would pay a special dividend this year of GBP1 million, worth 2.78 pence per share, as well as intentions to pay dividends worth GBP2 million per year for the financial years 2024, 2025 and 2026.
Further, the firm plans to commit GBP6 million to share buy-backs.
In total, the three measures would return around GBP13 million to shareholders over the next three years.
BP Marsh still intends to pay an additional 1.39 pence final dividend for the year ending January 31, as previously announced.
The company said it continues to see a high number of potential new business opportunities, with 60 new business enquiries in the year which ended on January 31.
Current opportunities under consideration include: a start-up underwriting agency, looking to specialise in underwriting marine insurance; and an established insurance broker, which specialises in insurance for high net worth clients and fine art & specie business.
Chair Brian Marsh said: "The group is well capitalised, debt free and has a strong pipeline of new investment opportunities, alongside expectations of growth within the existing portfolio, which underpin the group's confidence in its ongoing strategy."
Shares in BP Marsh closed up 2.4% at 346.25 pence in London on Tuesday.
By Jeremy Cutler, Alliance News reporter
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B.p Marsh (BPM)