David Ross, Group CEO, commented on the news, “The recommitment of both HPS and MDP continues a partnership that has assisted Ardonagh grow into a global broking powerhouse. Ardonagh has adequate opportunity to continue to develop on its platform and increase its reach and success, and by increasing our investment today we are declaring our commitment to continue supporting those efforts. We are happy to be a key investor behind the Ardonagh labor force and look forward to our continued collaboration, along with HPS and our and their new co-investors.”
The Ardonagh Group, a UK headquartered independent insurance broking, underwriting, servicing and management business and the owner of reinsurance broker Inver Re, has actually protected a major financial 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 developing out, especially since its acquisition of the BGC insurance and reinsurance broking operations, consisting of Corant Global and now its build-out of the Inver Re platform as well.
The business this morning announced a substantial brand-new equity financial investment, led by existing long-term shareholders Madison Dearborn Partners, LLC and HPS Investment Partners, together with brand-new co-investors through accounts managed by MDP and HPS, that consist of a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and a variety of other large international organizations.
The Abu Dhabi Investment Authority (ADIA) has been expanding 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 transaction, which values Ardonagh at $7.5 billion.
David Ross, Group CEO, talked about the news, “The recommitment of both HPS and MDP continues a partnership that has actually helped Ardonagh grow into a global broking powerhouse. Connection of ownership after six years is the optimal result for us, allowing management to focus solely on the execution of our strategy and the preservation of the special Ardonagh culture. We are also happy to welcome HPS and MDP co-investors to the Group. Their global, long-term aspirations are perfectly lined up with our own and those of our other shareholders, protecting our objective of being a private business for several years to come. Today is a significant turning point in Ardonaghs journey and the achievement comes from our biggest possession– each of our people.”
Ardonagh has actually ended up being a leading 20 global insurance coverage broker, placing $13 billion of premiums throughout its service and throughout the full spectrum of insurance and reinsurance threats.
With 8,000 staff members throughout 100 locations the company 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 team, stated, “We have supported Ardonagh since the development of the Group and in that time, weve seen incredible development and diversity. 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 reaffirming our commitment to continue supporting those efforts. We are happy to be a key shareholder behind the Ardonagh workforce and anticipate our continued partnership, together with HPS and our and their brand-new co-investors.”
Scot French, Governing Partner of HPS, added, “Throughout our multi-year relationship dating back to their first day at the Group, we have steadfastly supported the Ardonagh management groups vision to develop a best-in-class, global insurance brokerage platform. We are thrilled to stay significant financiers in the Group as they continue to perform on their development strategy.”
Hamad Al Dhaheri, Executive Director, Private Equities Department, ADIA, also commented, “We are happy to partner with Ardonagh, along with HPS and MDP, to support its strong management team in performing its worldwide growth method. This financial investment continues to build on our strategy and track record of buying market-leading services throughout the insurance industry value chain.”