UK-based independent insurance distribution platform and global brokerage, The Ardonagh Group, has reported a 30% rise in income for the first nine months of 2021 to £675.7 million, supported by strong growth in its Specialty and International units.
Total income improved markedly from the £519.5 million reported for the same period a year earlier, aided by organic growth of 10% across the business.
As a result of this organic growth and also acquisitions, the company’s adjusted EBITDA spiked by 44.5%, year-on-year, to £238.7 million.
During the third quarter, Ardonagh completed the acquisitions of Brian J Pierce Limited, Price Forbes Chile, Insurance Mentor Pty Limited, Usay Group Limited, and Cornerstone Risk Group Pty Limited. In total, these investments amounted to £125 million.
At the same time, Ardonagh completed its acquisition of Besso Insurance, Ed Broking, and Piiq Risk Partners on November 1st, 2021.
The impacts of acquisitions, organic growth, and the delivery of cost savings helped operating profit improve, year-on-year, from £44.5 million in 9M 2020 to £91.6 million in 9M 2021.
However, year-on-year, Ardonagh has reported that operating costs increased by 23.3% for the first nine months of the year, reaching £437 million in 9M 2021 against £354.3 million in 9M 2020.
Ardonagh’s loss for the period declined from £133.2 million in 2020 to a loss of £42.1 million this year, which the firm attributes mostly to the operating result and lower financing costs following its refinancing in 2020.
Group Chief Executive Officer (CEO), David Ross, commented: “The Group’s strong financial performance has again improved on all measurements. Our focus this year on building out the Specialty and International platforms has allowed us to harness global opportunities, backing ambitious specialist teams and businesses in high growth areas.
“The scale, support and expertise of Ardonagh combined with trust and autonomy is a powerful driver of the organic growth we report today.
“We approach year end as a truly global force with $1.5 billion income, placing $13 billion of insurance premium across the group and within our networks, and continuing to invest in the data and analytical capabilities to better serve our clients.”