The Ardonagh Group, a UK headquartered independent insurance broking, management, underwriting and maintenance company and the owner of reinsurance broker Inver Re, has protected a significant financial investment that values the company at $7.5 billion.The institutional quality of the financial investment backing is a vote of self-confidence in the broking platform Ardonagh is developing out, specifically considering that its acquisition of the BGC insurance and reinsurance broking operations, including Corant Global and now its build-out of the Inver Re platform as well.
The business this morning revealed a substantial new equity investment, led by existing long-lasting shareholders Madison Dearborn Partners, LLC and HPS Investment Partners, together with new co-investors by means of accounts managed by MDP and HPS, that include a completely owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a variety of other big international organizations.
The Abu Dhabi Investment Authority (ADIA) has 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 also reinvest in the Group.
The co-investors, consisting of the ADIA subsidiary and other large worldwide organizations, 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, commented on the news, “The recommitment of both HPS and MDP continues a partnership that has assisted Ardonagh turn into a worldwide broking powerhouse. Continuity of ownership after six years is the optimal outcome for us, enabling management to focus exclusively on the execution of our method and the conservation of the unique Ardonagh culture. We are likewise pleased to welcome HPS and MDP co-investors to the Group. Their global, long-lasting ambitions are perfectly aligned with our own and those of our other shareholders, securing our goal of being a personal enterprise for many years to come. Today is a major turning point in Ardonaghs journey and the achievement comes from our greatest asset– every one of our individuals.”
Ardonagh has become a top 20 global insurance coverage broker, positioning $13 billion of premiums across its organization and throughout the full spectrum of insurance coverage and reinsurance threats.
With 8,000 workers across 100 places the business continues to grow too, 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 group, said, “We have supported Ardonagh because the formation of the Group and because time, weve experienced tremendous development and diversification. Ardonagh has adequate 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 commitment to continue supporting those efforts. We are proud to be a key investor behind the Ardonagh labor force and eagerly anticipate our continued collaboration, together with HPS and our and their brand-new co-investors.”
Scot French, Governing Partner of HPS, added, “Throughout our multi-year relationship going back to their very first day at the Group, we have actually steadfastly supported the Ardonagh management groups vision to construct a best-in-class, worldwide insurance coverage brokerage platform. We are excited to remain meaningful investors in the Group as they continue to carry out on their development technique.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, also commented, “We are pleased to partner with Ardonagh, along with HPS and MDP, to support its strong management group in performing its international growth technique. This financial investment continues to develop on our strategy and performance history of buying market-leading businesses across the insurance market 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 worldwide broking powerhouse. Ardonagh has adequate opportunity 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 happy to be a key shareholder behind the Ardonagh workforce and look forward to our continued partnership, along with HPS and our and their brand-new co-investors.”