The Ardonagh Group has reported a 30% increase in income to $1.5 billion in its full year results, representing five-fold growth in the five years since its formation.
Meanwhile, adjusted EBITDA rose 22% to $476 million from $390 million in 2021.
The firm’s full year 2022 Pro Forma income stood at $1.8 billion, with an adjusted EBITDA of $594 million, including completed and committed acquisitions, together with annualised growth and savings initiatives.
Ardonagh states that it continued to focus on diversifying across products and markets in 2022, combining the strength of its established UK platforms with significant momentum in Specialty and International, which now account for over 45% of Group income.
In 2022, organic income growth was 16% in Specialty and 19% in International.
The firm has raised over $1 billion of combined equity and debt from our existing investors since the beginning of 2022, to support its inorganic activity.
Ardonagh has also completed and exchanged 39 acquisitions since the beginning of 2022.
This includes new platforms in Portugal and Latin America, the Netherlands and Australia through the acquisitions of MDS, Léons and Envest respectively.
The firm notes that the M&A pipeline remains active with over 70 transactions, the vast majority on a bilateral basis. The annualised value of the pipeline is over $100 million of EBITDA.
Group Chief Executive David Ross commented, “Ardonagh was created to build a high-quality global platform comprising client-focused, specialist broking businesses, with a London Specialty business at its heart.
“Our development from a regional UK-centric business in 2017 to one which isn’t reliant on any single economy has provided us with substantial opportunities for growth, as well as resilience against macroeconomic headwinds.
“Our regional UK platform was the bedrock for the development of Ardonagh into the diversified and vibrant marketplace that it is today.”
Ross continued, “In 2021, we fulfilled our ambition to create the largest independent broker in London with a transformational acquisition of BGC’s insurance operations. Integration is largely complete, having taken the time to consult with our staff, markets and clients before unveiling our new offering to the market.
“Our Specialty business is now operating as open market Broking (Price Forbes) and Programmes (Bishopsgate), with reinsurance capabilities, brought together in our newly launched business Inver Re.
“From our first international acquisition in 2020, Ardonagh International has been a priority for investment and finished the year as a $88 million Adjusted EBITDA unit, growing both with the platform and niche acquisitions and powering further expansion by local leaders in those businesses.
“In the UK, our Advisory business was buoyed by a growing demand for private healthcare, while the Retail business successfully adapted to the FCA market reforms and continued to innovate on product and data enrichment.
“2022 topped out the vision we had five years ago. We have assembled the foundations and now enter our next phase of growth, driving our internal specialisms and placement opportunities, making accretive acquisitions to our established platforms, leveraging our buying power, and learning from each other to optimise performance across the Group.”
Group Chairman John Tiner said, “The Ardonagh Group has been on a significant journey since it was founded, evolving to reflect the needs of our clients, colleagues, and the wider world around us.
“Our success is due in no small part to Ardonagh’s ability to adapt, collaborate and innovate across our increasingly diverse set of leading businesses.
“The financial update we report today is ultimately only possible because of our 10,000 colleagues, and the strong pride they take in their work with clients, together with their appetite to always look for opportunities to better serve them.
“This is the purposeful culture that continues to underpin Ardonagh across six continents.”
