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. Ardonagh has sufficient chance to continue to build 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 proud to be a key investor behind the Ardonagh labor force and look forward to our continued collaboration, alongside HPS and our and their new co-investors.”
The Ardonagh Group, a UK headquartered independent insurance broking, management, servicing and underwriting business 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 financial investment support is a vote of confidence in the broking platform Ardonagh is constructing out, particularly because its acquisition of the BGC insurance and reinsurance broking operations, including Corant Global and now its build-out of the Inver Re platform.
The company this early morning revealed a considerable 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 managed by MDP and HPS, that include 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 also reinvest in the Group.
The co-investors, including the ADIA subsidiary and other big global organizations, are set to acquire more than $1 billion in equity as part of the transaction, which values Ardonagh at $7.5 billion.
David Ross, Group CEO, discussed the news, “The recommitment of both HPS and MDP continues a collaboration that has actually assisted Ardonagh turn into a global broking powerhouse. Connection of ownership after 6 years is the optimum outcome for us, permitting management to focus solely on the execution of our technique and the conservation of the unique Ardonagh culture. We are likewise happy to welcome HPS and MDP co-investors to the Group. Their worldwide, long-lasting ambitions are completely lined up with our own and those of our other investors, protecting our goal of being a private enterprise for many years to come. Today is a significant turning point in Ardonaghs journey and the accomplishment comes from our greatest property– each of our people.”
Ardonagh has ended up being a top 20 global insurance coverage broker, putting $13 billion of premiums throughout its business and throughout the complete spectrum of insurance and reinsurance dangers.
With 8,000 workers throughout 100 areas the business continues to grow too, specifically 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 team, said, “We have supported Ardonagh considering that the development of the Group and in that time, weve witnessed remarkable development and diversification. Ardonagh has adequate chance to continue to construct 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 investor behind the Ardonagh labor force and eagerly anticipate our continued partnership, along with 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, worldwide insurance coverage brokerage platform. We are thrilled to remain meaningful investors in the Group as they continue to execute on their development technique.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, likewise commented, “We are happy to partner with Ardonagh, together with HPS and MDP, to support its strong management team in performing its global development technique. This investment continues to construct on our technique and track record of investing in market-leading companies across the insurance industry value chain.”