The Ardonagh Group, a UK headquartered independent insurance broking, underwriting, maintenance and management company and the owner of reinsurance broker Inver Re, has secured a major investment that values the company at $7.5 billion.The institutional quality of the investment support is a vote of self-confidence in the broking platform Ardonagh is constructing out, specifically because 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 business today revealed a considerable brand-new equity financial investment, led by existing long-term shareholders Madison Dearborn Partners, LLC and HPS Investment Partners, alongside brand-new co-investors by means of accounts handled 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 organizations.
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 global institutions, 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 an international broking powerhouse. Continuity of ownership after 6 years is the optimum result for us, enabling management to focus solely on the execution of our strategy and the preservation of the unique Ardonagh culture.
Ardonagh has actually become a leading 20 international insurance coverage broker, placing $13 billion of premiums across its business and across the complete spectrum of insurance and reinsurance threats.
With 8,000 workers throughout 100 areas the business 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 because the formation of the Group and in that time, weve witnessed significant development and diversification. Ardonagh has ample chance to continue to build 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 proud to be an essential shareholder behind the Ardonagh workforce and eagerly anticipate our continued collaboration, alongside HPS and our and their brand-new co-investors.”
Scot French, Governing Partner of HPS, included, “Throughout our multi-year relationship dating back to their first day at the Group, we have actually steadfastly supported the Ardonagh management groups vision to build a best-in-class, international insurance brokerage platform. We are delighted to remain significant financiers in the Group as they continue to perform on their growth technique.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, also commented, “We are happy to partner with Ardonagh, together with HPS and MDP, to support its strong management group in executing its worldwide growth strategy. This investment continues to build on our technique and performance history of buying market-leading businesses across the insurance coverage industry value 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 global broking powerhouse. Ardonagh has ample chance to continue to build on its platform and increase its reach and profitability, and by increasing our investment today we are declaring our dedication to continue supporting those efforts. We are happy to be a key shareholder behind the Ardonagh labor force and look forward to our continued collaboration, alongside HPS and our and their new co-investors.”