The Ardonagh Group, a UK headquartered independent insurance broking, underwriting, management and maintenance company 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 confidence in the broking platform Ardonagh is constructing out, especially 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 as well.
The business today revealed a considerable new equity investment, led by existing long-lasting investors Madison Dearborn Partners, LLC and HPS Investment Partners, together with brand-new co-investors by means of accounts handled by MDP and HPS, that consist of a completely owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a variety of other large worldwide institutions.
The Abu Dhabi Investment Authority (ADIA) has actually been expanding 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 worldwide 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, commented on the news, “The recommitment of both HPS and MDP continues a collaboration that has assisted Ardonagh grow into a worldwide broking powerhouse. Connection of ownership after six years is the optimal outcome for us, permitting management to focus exclusively on the execution of our strategy and the preservation of the special Ardonagh culture.
Ardonagh has become a leading 20 global insurance coverage broker, positioning $13 billion of premiums across its company and across the full spectrum of insurance coverage and reinsurance risks.
With 8,000 workers across 100 areas the business continues to grow as well, particularly 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, said, “We have supported Ardonagh since the formation of the Group and in that time, weve experienced significant growth and diversification. Ardonagh has ample opportunity to continue to construct 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 happy to be a key investor behind the Ardonagh labor force and anticipate our continued partnership, along with HPS and our and their 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 actually steadfastly supported the Ardonagh management teams vision to develop a best-in-class, global insurance coverage brokerage platform. We are delighted to stay significant financiers in the Group as they continue to carry out on their growth method.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, also commented, “We are pleased to partner with Ardonagh, alongside HPS and MDP, to support its strong management group in executing its global development method. This financial investment continues to build on our technique and performance history of purchasing market-leading services across the insurance market 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 worldwide broking powerhouse. Ardonagh has ample chance to continue to develop 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 proud to be an essential shareholder behind the Ardonagh labor force and look forward to our continued partnership, along with HPS and our and their new co-investors.”