The Ardonagh Group, a UK headquartered independent insurance broking, management, maintenance and underwriting business 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 investment support is a vote of confidence in the broking platform Ardonagh is developing out, especially given that 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 morning announced a significant brand-new equity investment, led by existing long-lasting shareholders Madison Dearborn Partners, LLC and HPS Investment Partners, along with new co-investors via accounts handled by MDP and HPS, that consist of a completely 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 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 international institutions, are set to get more than $1 billion in equity as part of the transaction, which values Ardonagh at $7.5 billion.
David Ross, Group CEO, talked about the news, “The recommitment of both HPS and MDP continues a partnership that has helped Ardonagh grow into an international broking powerhouse. Continuity of ownership after six years is the optimum result for us, enabling management to focus exclusively on the execution of our strategy and the conservation of the unique Ardonagh culture. We are likewise thrilled to welcome HPS and MDP co-investors to the Group. Their global, long-lasting ambitions are completely aligned with our own and those of our other shareholders, securing our objective of being a private enterprise for several years to come. Today is a significant milestone in Ardonaghs journey and the achievement comes from our greatest property– every one of our people.”
Ardonagh has actually ended up being a top 20 worldwide insurance coverage broker, putting $13 billion of premiums across its service and across the full spectrum of insurance coverage and reinsurance risks.
With 8,000 employees throughout 100 places the company continues to grow as well, 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 team, said, “We have actually supported Ardonagh since the development of the Group and in that time, weve seen tremendous growth and diversity. 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 commitment to continue supporting those efforts. We are happy to be an essential investor behind the Ardonagh workforce and anticipate our continued partnership, alongside 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 remain significant investors in the Group as they continue to carry out on their development method.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, likewise commented, “We are pleased to partner with Ardonagh, along with HPS and MDP, to support its strong management team in executing its international growth method. This investment continues to build on our technique and performance history of purchasing market-leading businesses throughout the insurance coverage market value 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 build 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 key shareholder behind the Ardonagh workforce and look forward to our continued partnership, alongside HPS and our and their brand-new co-investors.”