The Ardonagh Group, a UK headquartered independent insurance broking, maintenance, management and underwriting company and the owner of reinsurance broker Inver Re, has protected a significant investment that values the company at $7.5 billion.The institutional quality of the investment backing is a vote of confidence in the broking platform Ardonagh is constructing out, specifically considering that its acquisition of the BGC insurance and reinsurance broking operations, including Corant Global and now its build-out of the Inver Re platform.
The business today announced a significant brand-new equity investment, led by existing long-lasting shareholders Madison Dearborn Partners, LLC and HPS Investment Partners, together with new co-investors through accounts managed by MDP and HPS, that include an entirely owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a number of other big global institutions.
The Abu Dhabi Investment Authority (ADIA) has been expanding its interests in insurance and reinsurance of late, both on a personal 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 international institutions, are set to obtain 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 collaboration that has actually assisted Ardonagh turn into a worldwide broking powerhouse. Connection of ownership after 6 years is the optimal outcome for us, permitting management to focus solely on the execution of our strategy and the conservation of the special Ardonagh culture. We are likewise pleased to invite HPS and MDP co-investors to the Group. Their international, long-term ambitions are perfectly aligned with our own and those of our other investors, protecting our goal of being a private enterprise for several years to come. Today is a significant milestone in Ardonaghs journey and the accomplishment comes from our greatest property– every one of our individuals.”
Ardonagh has ended up being a leading 20 international insurance coverage broker, positioning $13 billion of premiums across its organization and throughout the complete spectrum of insurance and reinsurance threats.
With 8,000 employees across 100 areas the business continues to grow also, specifically through its acquisitions.
At September 30th 2021, Ardonaghs earnings over the last twelve months was $1.5 billion, while adjusted EBITDA reached $530 million.
Vahe Dombalagian, Managing Director and Co-Head of the MDP Financial & & Transaction Services group, stated, “We have supported Ardonagh because the development of the Group and in that time, weve witnessed tremendous development and diversification. Ardonagh has ample opportunity to continue to develop on its platform and increase its reach and profitability, and by increasing our financial investment today we are reaffirming our commitment to continue supporting those efforts. We are happy to be a crucial investor behind the Ardonagh workforce and eagerly anticipate our continued collaboration, alongside HPS and our and their new co-investors.”
Scot French, Governing Partner of HPS, included, “Throughout our multi-year relationship going back to their very first day at the Group, we have actually steadfastly supported the Ardonagh leadership teams vision to construct a best-in-class, international insurance brokerage platform. We are excited to stay meaningful financiers in the Group as they continue to perform on their growth method.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, also commented, “We are happy to partner with Ardonagh, along with HPS and MDP, to support its strong management group in performing its worldwide growth technique. This financial investment continues to develop on our method and track record of purchasing market-leading services throughout 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 actually helped Ardonagh grow into a global broking powerhouse. Ardonagh has ample chance to continue to build on its platform and increase its reach and success, and by increasing our financial investment today we are declaring our commitment to continue supporting those efforts. We are proud to be a crucial investor behind the Ardonagh labor force and look forward to our continued collaboration, together with HPS and our and their new co-investors.”