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 ample opportunity to continue to construct on its platform and increase its reach and profitability, and by increasing our financial investment today we are declaring our dedication to continue supporting those efforts. We are happy to be a crucial shareholder behind the Ardonagh labor force and look forward to our continued partnership, along with HPS and our and their brand-new co-investors.”
The Ardonagh Group, a UK headquartered independent insurance broking, maintenance, management and underwriting business and the owner of reinsurance broker Inver Re, has secured a significant investment that values the company at $7.5 billion.The institutional quality of the financial investment support 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 this morning revealed a considerable brand-new equity investment, led by existing long-term shareholders Madison Dearborn Partners, LLC and HPS Investment Partners, along with new co-investors by means of accounts managed by MDP and HPS, that include a completely owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a variety of other big worldwide institutions.
The Abu Dhabi Investment Authority (ADIA) has 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 big worldwide 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 assisted Ardonagh grow into a global broking powerhouse. Continuity of ownership after 6 years is the maximum outcome for us, allowing management to focus exclusively on the execution of our method and the preservation of the unique Ardonagh culture.
Ardonagh has become a leading 20 worldwide insurance broker, putting $13 billion of premiums throughout its service and across the full spectrum of insurance coverage and reinsurance dangers.
With 8,000 employees throughout 100 locations the business continues to grow too, specifically through its acquisitions.
At September 30th 2021, Ardonaghs income 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 since the development of the Group and in that time, weve seen remarkable growth and diversity. Ardonagh has sufficient opportunity to continue to develop on its platform and increase its reach and success, and by increasing our financial investment today we are reaffirming our dedication to continue supporting those efforts. We are happy to be a key shareholder behind the Ardonagh labor force and anticipate our continued collaboration, together with HPS and our and their brand-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 steadfastly supported the Ardonagh management teams vision to develop a best-in-class, global insurance coverage brokerage platform. We are excited to stay significant financiers in the Group as they continue to perform on their development technique.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, also commented, “We are pleased to partner with Ardonagh, along with HPS and MDP, to support its strong management team in performing its international growth strategy. This financial investment continues to build on our method and performance history of buying market-leading organizations across the insurance coverage market value chain.”