The Ardonagh Group, a UK headquartered independent insurance coverage broking, management, servicing and underwriting business and the owner of reinsurance broker Inver Re, has protected a significant 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 developing out, particularly 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 also.
The company today announced a significant new equity investment, led by existing long-term investors Madison Dearborn Partners, LLC and HPS Investment Partners, along with brand-new co-investors by means of accounts managed by MDP and HPS, that consist of a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a number of other large worldwide institutions.
The Abu Dhabi Investment Authority (ADIA) has actually been broadening its interests in insurance 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 international 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, discussed the news, “The recommitment of both HPS and MDP continues a collaboration that has actually helped Ardonagh grow into a worldwide broking powerhouse. Continuity of ownership after six years is the maximum result for us, enabling management to focus exclusively on the execution of our method and the preservation of the special Ardonagh culture. We are likewise happy to welcome HPS and MDP co-investors to the Group. Their worldwide, long-lasting ambitions are perfectly lined up with our own and those of our other investors, securing our objective of being a personal business for many years to come. Today is a major turning point in Ardonaghs journey and the accomplishment comes from our biggest asset– every one of our individuals.”
Ardonagh has actually ended up being a top 20 worldwide insurance broker, putting $13 billion of premiums throughout its organization and throughout the full spectrum of insurance and reinsurance risks.
With 8,000 employees across 100 areas the business continues to grow also, especially through its acquisitions.
At September 30th 2021, Ardonaghs income over the last twelve months was $1.5 billion, while adjusted 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 because time, weve experienced incredible growth and diversity. Ardonagh has sufficient opportunity to continue to build on its platform and increase its reach and profitability, and by increasing our financial investment today we are declaring our dedication to continue supporting those efforts. We are proud to be a crucial investor behind the Ardonagh workforce and eagerly anticipate our continued collaboration, alongside HPS and our and their 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 develop a best-in-class, worldwide insurance brokerage platform. We are thrilled to stay meaningful investors in the Group as they continue to carry out on their growth method.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, likewise commented, “We are happy to partner with Ardonagh, along with HPS and MDP, to support its strong management group in performing its worldwide growth method. This financial investment continues to develop on our strategy and track record of investing in market-leading services throughout the insurance coverage market worth 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 opportunity to continue to construct on its platform and increase its reach and success, and by increasing our financial investment today we are declaring our commitment to continue supporting those efforts. We are proud to be a crucial investor behind the Ardonagh labor force and look forward to our continued partnership, alongside HPS and our and their brand-new co-investors.”