We hosted a roadshow with MLP CEO Dr. Uwe Schroeder-Wildberg. Key takeaways confirm the equity story momentum: MLP combines a c. 5% dividend yield with continuously improving revenue visibility and tangible adj. earnings growth.
Client proposition centred on "peace of mind". MLP's model is built around long-term financial planning and stable, mostly fee-based, adviser relationships. This is relevant in a market where customers can easily compare single products such as Tagesgeld, neobank accounts or ETFs. MLP's focus remains the full financial package: banking, insurance, wealth, old-age provision and financing, anchored in personal advice and a long-term customer relationship. This supports retention and cross-selling as clients move through life stages.
Earnings quality continues to improve. 72% of sales are already recurring. Wealth and property and casualty (P&C) insurance are the main recurring growth pillars, helped by savings plans, rising customer maturity and inflation-linked premium volumes in non-life insurance. This improves forecasting quality and lowers reliance on one-off product sales. Against this backdrop, performance fees are not the foundation: MLP includes only high-single-digit €m performance fees annually (c. 1% of sales) in its mid-term targets, compared to a seven-year average of c. € 23m. With c. 70% incremental EBIT margin, stronger performance fees would be upside. 2025 also offers a low comparable base (only c. € 11m).
Disintermediation risk looks manageable. Neobanks, ETFs and AI remain relevant competitive forces, especially on pricing. Still, human advice remains the single most trusted source of investment guidance (source: CFA Institute), supporting the relevance of MLP's adviser-led model. MLP's answer is to integrate digitalisation and AI into the advisory process, improving transparency, speed and adviser productivity while preserving the personal relationship.
AI is turning into an operating lever. MLP already uses AI in business-relevant processes, with cost control visible in 2025 (adj. EBIT margin up 0.1pp yoy, despite declining performance fees). In P&C, an AI-supported claims solution can handle claims in roughly 10 minutes. Simultaneously, an insurance contract-checking tool can analyse existing client contracts and generate counter-offers with better pricing, better service or both. This supports customer benefit, adviser efficiency and the broader digitalisation case.
Dividend case backed by growth and cash. The dividend (5% yield at current levels) remains well supported by MLP's 50-70% payout target and an expected 14% adj. EBIT CAGR into 2028e (eNuW, in line with mid-term targets). Consequently, the sustainable dividend should grow going forward, further anchored by MLP's ambition to maintain dividend continuity. In addition, € >80m net available cash after regulatory buffers leaves room for M&A, special dividends or buybacks. Yet, the cash buffer should be seen to maintain financial flexibility, rather than a near-term distribution trigger.
In sum, MLP remains a quality financial advisory platform with a rare combination of yield, earnings growth, recurring revenue visibility and balance-sheet quality. BUY, PT € 12, on Residual Income.
ISIN: DE0006569908
