The Ardonagh Group, a UK headquartered independent insurance coverage broking, management, underwriting and servicing company and the owner of reinsurance broker Inver Re, has actually protected a major investment that values the firm at $7.5 billion.The institutional quality of the investment backing is a vote of self-confidence in the broking platform Ardonagh is developing out, particularly given that its acquisition of the BGC insurance coverage and reinsurance broking operations, including Corant Global and now its build-out of the Inver Re platform.
The company today revealed a substantial new equity investment, led by existing long-lasting investors Madison Dearborn Partners, LLC and HPS Investment Partners, together with brand-new co-investors via accounts handled by MDP and HPS, that include an entirely owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a number of other large worldwide institutions.
The Abu Dhabi Investment Authority (ADIA) has actually been broadening its interests in insurance coverage and reinsurance of late, both on a private equity basis and through its insurance-linked securities (ILS) portfolio.
Funds under the management of Madison Dearborn Partners, LLC and HPS Investment Partners will both increased their shareholding in Ardonagh and HPS will likewise reinvest in the Group.
The co-investors, including the ADIA subsidiary and other big global institutions, are set to acquire more than $1 billion in equity as part of the transaction, which values Ardonagh at $7.5 billion.
David Ross, Group CEO, discussed the news, “The recommitment of both HPS and MDP continues a partnership that has actually helped Ardonagh become a global broking powerhouse. Connection of ownership after six years is the optimum result for us, permitting management to focus solely on the execution of our strategy and the preservation of the distinct Ardonagh culture. We are also pleased to invite HPS and MDP co-investors to the Group. Their worldwide, long-lasting aspirations are perfectly lined up with our own and those of our other shareholders, securing our objective of being a private enterprise for years to come. Today is a major milestone in Ardonaghs journey and the accomplishment comes from our biggest possession– each of our people.”
Ardonagh has become a leading 20 international insurance broker, putting $13 billion of premiums throughout its organization and throughout the full spectrum of insurance coverage and reinsurance risks.
With 8,000 workers throughout 100 areas the business continues to grow too, especially through its acquisitions.
At September 30th 2021, Ardonaghs earnings over the last twelve months was $1.5 billion, while changed EBITDA reached $530 million.
Vahe Dombalagian, Managing Director and Co-Head of the MDP Financial & & Transaction Services group, stated, “We have actually supported Ardonagh considering that the development of the Group and in that time, weve experienced tremendous growth and diversification. Ardonagh has adequate chance to continue to build on its platform and increase its reach and profitability, and by increasing our investment today we are declaring our dedication to continue supporting those efforts. We are happy to be a key shareholder behind the Ardonagh workforce and anticipate our continued collaboration, together with HPS and our and their brand-new co-investors.”
Scot French, Governing Partner of HPS, added, “Throughout our multi-year relationship dating back to their first day at the Group, we have actually steadfastly supported the Ardonagh management teams vision to construct a best-in-class, international insurance brokerage platform. We are delighted to stay meaningful financiers in the Group as they continue to execute on their growth method.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, likewise commented, “We are delighted to partner with Ardonagh, along with HPS and MDP, to support its strong management team in performing its worldwide growth technique. This financial investment continues to develop on our technique and track record of purchasing market-leading companies across the insurance industry worth chain.”
David Ross, Group CEO, commented on the news, “The recommitment of both HPS and MDP continues a partnership that has helped Ardonagh grow into an international broking powerhouse. Ardonagh has ample chance to continue to develop on its platform and increase its reach and success, and by increasing our investment today we are reaffirming our dedication to continue supporting those efforts. We are proud to be a key shareholder behind the Ardonagh workforce and look forward to our continued partnership, along with HPS and our and their new co-investors.”