MLP SE
9M 2024: MLP Group achieves new record levels for total revenue and earnings

9M 2024: MLP Group achieves new record levels for total revenue and earnings

• Earnings before interest and taxes (EBIT) increases significantly to EUR 66.4 million (9M 2023: EUR 45.2 million) – Total revenue rises to EUR 763 million (9M 2023: EUR 685 million), all three competence fields contribute to the positive development
• Particularly strong revenue growth in the Wealth competence field – primarily in wealth management and the interest rate business. Consistently high revenue level in the Property & Casualty competence field, which comprises the non-life insurance business with both corporate and private clients, as well as in the Life & Health competence field, which comprises old-age provision and health insurance
• Key figures for future revenue development further increased to new record levels: MLP Group reaches EUR 61.0 billion in assets under management and a managed non-life insurance premium volume of EUR 736 million
• MLP confirms its raised EBIT forecast for 2024 of EUR 85 to 95 million from October 2, 2024
• Planning for EBIT of between EUR 100 and 110 million reaffirmed for the end of 2025 – further increase in assets under management and the non-life insurance portfolio volume, as well as sustainable growth across all competence fields

 Wiesloch, November 14, 2024 – In the first nine months of 2024, the MLP Group set new records for both total revenue and earnings before interest and taxes (EBIT). The Group was once again able to capitalise on the strengths of the strategically optimised positioning it has developed in recent years. Accordingly, MLP increased total revenue significantly to EUR 763 million (9M 2023: EUR 685 million) and EBIT to EUR 66.4 million (9M 2023: EUR 45.2 million). A strong third quarter with EBIT of EUR 17.8 million also contributed to this (9M 2023: EUR 7.8 million). The development recorded in the first nine months of the year can primarily be attributed to strong revenue growth in the Wealth competence field. Above all, MLP recorded higher revenue from wealth management and its interest rate business compared to the same period of the previous year.

In wealth management MLP recorded particularly in the third quarter of 2024 – as already communicated in an ad-hoc announcement on October 2, 2024 –significantly higher performance-based compensation. As of the reporting date, September 30, 2024, the MLP Group also set another new all-time high in assets under management, reaching EUR 61.0 billion. The Property & Casualty and Life & Health competence fields also contributed to the extremely positive development recorded. MLP confirms the raised EBIT forecast for 2024 of EUR 85 to 95 million from October 2, 2024. At the same time, the MLP Group once again reaffirms its planning to record EBIT of EUR 100 to 110 million by the end of 2025.

“The great potential offered by the MLP Group’s strategically interlinked positioning, which we have built up and continuously developed over the past almost 20 years, is now becoming clearer than ever before. The figures recorded also underpin both the impressive stability and the growth potential of our business model,” commented Dr Uwe Schroeder-Wildberg, Chief Executive Officer at MLP SE, adding: “By successfully implementing our digital strategy, we are offering our clients genuine added value, while at the same time increasing our efficiency. With the responsible and client-oriented use of artificial intelligence, we are creating entirely new perspectives.”

Total revenue increased to EUR 763 million

MLP increased its total revenue by 11 percent in the first nine months of 2024, recording a new high of EUR 763 million (9M 2023: EUR 685 million). MLP recorded particularly strong revenue growth of 30 percent to EUR 381 million (9M 2023: EUR 293 million) in the Wealth competence field, largely driven by the wealth management and interest rate business that this includes. In wealth management, MLP’s private client business, as well as the service provided to institutional and high net worth clients by the MLP subsidiary FERI, both contributed to the growth in revenue. The performance-based compensation at FERI also increased significantly. They are the consequence of positive performance of investment concepts and are largely recognised in the results.

At EUR 165 million (9M 2023: EUR 162 million), the MLP Group recorded consistently high revenue in the Property & Casualty competence field, which comprises the non-life insurance business with both corporate and private clients. The Life & Health competence field, which comprises old-age provision and health insurance, also displayed similar development. MLP recorded revenue of EUR 192 million here (9M 2023: EUR 189 million). As expected, revenue in the Others competence field, which includes alongside the real estate development business also other commissions and fees, declined significantly to around EUR 8 million (9M 2023: EUR 21 million). This was due to market turbulence in the real estate sector and an active reduction of the associated business-related risks.

As of the reporting date of September 30, 2024, the MLP Group was able to record new highs in key figures that are extremely important for future revenue development: Accordingly, assets under management rose to EUR 61.0 billion (June 30, 2024: EUR 60.5 billion), while the managed non-life insurance premium volume rose to EUR 736 million (June 30, 2024: EUR 729 million).

EBIT at EUR 66.4 million

In the first nine months of 2024, the MLP Group was able to increase its EBIT to a new record level of EUR 66.4 million (9M 2023: EUR 45.2 million). This was largely thanks to the strong revenue development observed in the Wealth competence field, as well as the consistently high revenue level in both the Property & Casualty and Life & Health competence fields. Only real estate development (in the Others competence field) was still significantly below the previous year in the first nine months of 2024. However, the measures introduced early on are having an increasingly positive impact here. Q3 EBIT was at EUR 17.8 million (Q3 2023: EUR 7.8 million). Group net profit was EUR 48.1 million in the first nine months of 2024 (9M 2023: EUR 29.0 million).

Positive development of client and consultant numbers

As of September 30, 2024, the MLP Group served 585,600 family clients (June 30, 2024: 583,600). The gross number of newly acquired family clients was 14,100 (9M 2023: 14,100). The number of corporate and institutional clients as of September 30, 2024 was 27,900 (June 30, 2024: 27,800). The number of consultants in the MLP Group as of September 30, 2024 was 2,082 (June 30, 2024: 2,080).

Raised forecast for 2024 confirmed

Set against the background of the successful performance in the first half of 2024, as well as in particular the anticipated strong third quarter, MLP had raised the forecast EBIT corridor for the year to EUR 85 to 95 million on October 2, 2024. In terms of revenue, the MLP Group continues to expect strong growth in the Wealth competence field for the year, while it now anticipates stable revenue in the Life & Health competence field. MLP confirms its forecast of stable revenue for the Property & Casualty competence field. However, risks continue to be faced due to the development of the markets – above all with regard to the ongoing recovery of the real estate markets.

MLP confirms its planning to increase its EBIT to a level of between EUR 100 and 110 million by the end of 2025. The Group is anticipating this increase as a result of its three strategic success factors: further growth in the Group’s assets under management, ongoing expansion of the non-life insurance portfolio, as well as sustainable growth in all parts of the MLP Group. The brokerage of old-age provision products will, in particular, make an increasing contribution to this.  Real estate brokerage continues to play a significant role in diversifying large wealth portfolios, particularly among MLP’s high-end clientele.

Acquisitions are not yet factored into the planning for 2025, although they remain among the strategic options of the MLP Group. In addition, the ongoing strict cost management is intended to support the positive EBIT development.

“We have already achieved very much in 2024 – and in light of this, we have also raised our forecast. At the same time, we are also making significant progress towards the EBIT level targeted in our planning for the end of 2025. The growth factors we have strategically developed are taking effect. The continuous growth we have been observing in key figures – assets under management and the managed non-life insurance premium volume – underpin this,” comments Reinhard Loose, Chief Financial Officer at MLP SE

An overview of key figures

*) As of December 31, 2023

About MLP

The MLP Group and its brands Deutschland.Immobilien, DOMCURA, FERI, MLP, RVM and TPC is the financial services provider for private, corporate and institutional clients. Special added value is created by networking the various perspectives and areas of expertise – enabling clients to reach better financial decisions. To this end, the MLP Group competently combines personal and digital offers. Several of the brands also offer selected products, services and technology for other financial services providers.

• Deutschland.Immobilien – The real estate platform for clients and financial consultants
• DOMCURA – The underwriting agency for financial consultants and consultant platforms
• FERI – Multi asset investment firm for institutional investors and high net worth individuals
• MLP – Financial consulting and banking for discerning clients
• RVM – Risk manager for insurance and provision for SMEs
• TPC– Benefit expert network for enterprises

An intensive transfer of knowledge and expertise takes place within the network. The specialists support one another in the areas of research and concept development, as well as in client consulting. This valuable and targeted interaction generates additional value for clients, as well as for the company and for its shareholders. Economic success also forms the basis for accepting social responsibility.

The Group was founded in 1971 and manages assets of around €61 billion for around 585,600 private and around 27,900 corporate and institutional clients as well as non-life insurance portfolio volumes of around €736 million. In addition to this, more than 10,000 financial services providers take up the services on offer.