The Ardonagh Group, a UK headquartered independent insurance coverage broking, maintenance, management and underwriting company and the owner of reinsurance broker Inver Re, has actually secured a significant investment that values the firm at $7.5 billion.The institutional quality of the financial investment support is a vote of confidence in the broking platform Ardonagh is building out, specifically since its acquisition of the BGC insurance coverage and reinsurance broking operations, consisting of Corant Global and now its build-out of the Inver Re platform.
The company this early morning announced a significant brand-new equity investment, led by existing long-term investors Madison Dearborn Partners, LLC and HPS Investment Partners, along with brand-new co-investors by means of accounts managed by MDP and HPS, that consist of an entirely owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a number of other large global institutions.
The Abu Dhabi Investment Authority (ADIA) has actually been broadening its interests in insurance coverage 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, consisting of the ADIA subsidiary and other large international organizations, are set to get more than $1 billion in equity as part of the deal, which values Ardonagh at $7.5 billion.
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. Continuity of ownership after six years is the optimal result for us, enabling management to focus exclusively on the execution of our strategy and the preservation of the unique Ardonagh culture.
Ardonagh has actually ended up being a top 20 worldwide insurance coverage broker, placing $13 billion of premiums throughout its business and throughout the full spectrum of insurance and reinsurance risks.
With 8,000 staff members across 100 places the business continues to grow too, particularly through its acquisitions.
At September 30th 2021, Ardonaghs income 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, said, “We have supported Ardonagh considering that the development of the Group and in that time, weve experienced remarkable development and diversity. Ardonagh has ample chance to continue to develop on its platform and increase its reach and success, and by increasing our financial investment today we are reaffirming our commitment to continue supporting those efforts. We are proud to be a key shareholder behind the Ardonagh workforce and eagerly anticipate our continued partnership, 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 very first day at the Group, we have steadfastly supported the Ardonagh management groups vision to build a best-in-class, worldwide insurance coverage brokerage platform. We are excited to remain meaningful financiers in the Group as they continue to carry out on their growth method.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, likewise commented, “We are pleased to partner with Ardonagh, together with HPS and MDP, to support its strong management group in performing its worldwide development strategy. This financial investment continues to develop on our technique and track record of buying market-leading organizations throughout the insurance market worth chain.”
David Ross, Group CEO, commented on the news, “The recommitment of both HPS and MDP continues a collaboration that has helped Ardonagh grow into an international broking powerhouse. Ardonagh has adequate chance to continue to construct on its platform and increase its reach and profitability, and by increasing our financial investment today we are reaffirming our dedication to continue supporting those efforts. We are happy to be a key investor behind the Ardonagh workforce and look forward to our continued collaboration, alongside HPS and our and their new co-investors.”