The Ardonagh Group, a UK headquartered independent insurance broking, servicing, management and underwriting company and the owner of reinsurance broker Inver Re, has actually secured a major investment that values the company at $7.5 billion.The institutional quality of the investment backing is a vote of self-confidence in the broking platform Ardonagh is constructing out, specifically considering 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 today revealed a substantial new equity financial investment, led by existing long-lasting investors Madison Dearborn Partners, LLC and HPS Investment Partners, alongside new co-investors via accounts managed by MDP and HPS, that include a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a number of other large international institutions.
The Abu Dhabi Investment Authority (ADIA) has actually 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, consisting of the ADIA subsidiary and other big global institutions, are set to obtain 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 collaboration that has actually assisted Ardonagh turn into a worldwide broking powerhouse. Continuity of ownership after six years is the optimum outcome for us, permitting management to focus exclusively on the execution of our technique and the preservation of the unique Ardonagh culture. We are also delighted to welcome HPS and MDP co-investors to the Group. Their worldwide, long-lasting ambitions are perfectly aligned with our own and those of our other shareholders, securing our goal of being a private enterprise for several years to come. Today is a significant milestone in Ardonaghs journey and the accomplishment belongs to our biggest property– every one of our people.”
Ardonagh has ended up being a leading 20 international insurance broker, positioning $13 billion of premiums throughout its organization and throughout the complete spectrum of insurance and reinsurance threats.
With 8,000 staff members across 100 locations the company continues to grow as well, especially 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, stated, “We have supported Ardonagh given that the development of the Group and in that time, weve witnessed tremendous development and diversification. Ardonagh has adequate chance to continue to construct on its platform and increase its reach and success, and by increasing our financial investment today we are declaring our dedication to continue supporting those efforts. We are happy to be an essential shareholder behind the Ardonagh workforce and anticipate our continued collaboration, 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 steadfastly supported the Ardonagh management teams vision to develop a best-in-class, international insurance brokerage platform. We are excited to stay significant investors in the Group as they continue to carry out on their growth strategy.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, also commented, “We are delighted to partner with Ardonagh, together with HPS and MDP, to support its strong management team in executing its international development technique. This investment continues to develop on our method and track record of buying market-leading organizations across the insurance coverage industry worth chain.”
David Ross, Group CEO, commented on the news, “The recommitment of both HPS and MDP continues a partnership that has actually assisted Ardonagh grow into a worldwide broking powerhouse. Ardonagh has sufficient 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 dedication to continue supporting those efforts. We are happy to be an essential investor behind the Ardonagh workforce and look forward to our continued partnership, along with HPS and our and their brand-new co-investors.”