Topic: Yesterday, MLP released final Q2 results in line with the preliminary EBIT figure, giving further insights into its moving parts. In detail:

Q2 sales arrived as expected flat yoy at € 228m (eNuW: € 230m), as a mix of manifold revenue drivers: Wealth declined by 4% yoy to € 120m (eNuW: € 117m) due to lower interest income and the much lower performance fees. On an underlying level (sales ex performance fees), the Wealth competence field could actually grow sales by 3.5% yoy. Life & Health grew modestly by 1% yoy to € 66m (eNuW: € 69m) on the back of a strong health insurance business (+8% yoy). Moreover, P&C showed a strong growth of 9% yoy to € 37m (eNuW: € 35m).

As already announced per ad-hoc on 31st July, Q2 EBIT came in at € 4.9m with a 2.1% margin (-2.9 pp yoy) in a seasonally weak quarter. The main reason behind this development is a mix of many moving parts:

1. Lower interest rate environment: the recent ECB interest rate cuts led to a lower net interest income (

   NIC

   ) of € 13.2m (Q2’24: € 14.2m), for which we assume an 85% incremental EBIT margin (i.e. a € -0.9m yoy EBIT effect).

2. Lower performance fees: Q2’24 had a positive € 5.4m performance fee contribution, whereas Q2’25 only had € 1.6m, due to volatile capital markets. Assuming a

   65% incremental EBIT margin

   of performance fees, this should have led to a negative € 2.5m yoy EBIT effect.

3. Temporarily higher IT costs: in an anyhow seasonally weak quarter, the timing of temporarily higher IT costs (eNuW: € 1.5m) was unfavorable, further dragging EBIT.

Nevertheless, MLP confirmed its FY’25 EBIT guidance of € 100-110m. Although H2’25 now requires an EBIT of € 57-67m (vs. H2’24 of € 46m EBIT incl. a € 16m EBIT contribution from performance fees), in order to reach the guidance, management feels confident to achieve it. On the back of continuous momentum in health insurance, non-life insurance as well as RE brokerage (which comed with operating leverage and higher brokerage margins) and with some € 4m in H2 performance fees baked in, we expect H2 EBIT of € 59m, in line with the guidance. Admittedly, the target now seems at risk if the RE development segment Deutschland.Immobilien does not develop as planned in H2. However, Q3’24 saw a strong performance fee contribution from unobservable (and unpredictable) PE fund carries of € 17m. These might also be in the cards for Q3’25 (at a lower or maybe similar magnitude) and would thus support reaching the guidance, but that remains speculative for now.

All in all, the release should not have come as a surprise. Consequently, we regard the negative share price reaction yesterday as overdone and on the contrary recommend to BUY, as the shares remain attractively valued (only

6.

6x FY’25e EBI

T)

. As our estimates remain unchanged, we also maintain our PT of € 13.00, based on SOTP and FCFY’25e.