MLP strategically opens the market for industrial insurance – acquisition of RVM forms the fundamental basis

• RVM's long-standing and proven business model to be maintained – securing continuity for clients
• The acquisition represents the fundamental basis for opening the commercial and industrial insurance market – with further acquisitions planned as part of a growth strategy
• With a new segment MLP pushes ahead with the strategy of diversifying its revenue basis and expanding recurring revenue

Wiesloch/Eningen, February 8, 2021 – Having significantly extended its offers for corporate and institutional clients, as well as its B2B services in the last few years, the MLP Group is now strategically expanding its commercial and industrial insurance business. In the first step, MLP acquires 100 percent of the shares in RVM Versicherungsmakler GmbH & Co. KG., including its key subsidiaries (“RVM”). With a business model that has proven effective over many years and a strong focus on medium-sized enterprises, RVM as an industrial insurance broker serves more than 2,500 companies in this field.

RVM generated revenue of around €19 million in 2019. The total purchase price that MLP is to pay to the two shareholders is in the mid-double-digit million range. It comprises a mechanism by which part of the purchase price is linked in retrospect to the quality of business development up to the end of 2022. MLP will pay around half of the purchase price from cash funds. MLP is anticipating a € mid-single-digit million EBIT contribution on an annual basis from the new industrial insurance broker segment from the first full financial year onwards, the year 2022. This segment will initially comprise RVM after completion of the transaction.

"With the acquisition of both DOMCURA and DEUTSCHLAND.Immobilien, we are serving more than 5,000 sales partners each in the B2B business. We have also successfully established institutional business through FERI and are now the leading German broker for occupational pension provision. The next step in the expansion of the corporate client business is to further open the market for industrial insurance. By taking this step, we are further diversifying the Group's revenue basis, once again increasing the proportion of recurring revenue and becoming a market-shaping power beyond the boundaries of the private client business", comments MLP Chief Executive Officer Dr. Uwe Schroeder-Wildberg. "With the acquisition of RVM, we have laid the foundations for the systematic expansion of the new industrial insurance broker segment. Over the course of the next few months, we are planning further acquisitions of medium-sized market members in this heavily fragmented competitive environment as part of our growth strategy. The objective is to assume a significant position in this market in the mid-term."

Continuity is assured for the over 2,500 existing clients that work with RVM. The company will continue to operate under the same brand and with the same, proven management team. "Within the MLP Group, we benefit from its financial strength and Germany-wide orientation. This will help us further develop and network our business. At the same time, we remain the familiar reliable partner for our clients," comments Erich Burth, managing partner at RVM. Around 200 employees currently work for the company, whose headquarters are located in Eningen/Reutlingen.

"An important factor in the brokerage business at RVM is the company's identity as a medium-sized enterprise, which we will continue to strengthen within the MLP Group. The objective is to be an essential contact for Germany's medium-sized firms in an organisation that operates throughout Germany," comments Manfred Bauer, Member of the Executive Board at MLP. "There is also further synergy potential in coaction with other parts of the MLP Group. For example, MLP's corporate clients in the field of occupational pension provision can now also cover their industrial insurance requirements from a single source. At the same time, synergies are created within the MLP Group thanks to the use of the same IT infrastructure and in further processes in the operating business."

The acquisition contract was signed today. The undertaking is scheduled to be implemented in the second quarter of 2021 with economic effect from January 1, 2021, subject to approval by the competition authorities. A significant portion of RVM's EBIT is generated in the first quarter of a year due to the seasonal nature of the business. Until the transaction is implemented, the result for the year 2021 will be recognized in equity capital.

MLP was advised on the transaction by GSK Stockmann and Ernst & Young, RVM by RWT Anwaltskanzlei GmbH and Reutlinger Wirtschaftstreuhand GmbH.

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