Global re/insurance broker, Howden Group Holdings, has announced record organic growth of 19%, and a 60% rise in revenue to £1.84 billion for the year ended September 30th, 2022.
Organic growth of 19% is in line with the previous year and is a result of new client wins and fresh talent joining the firm, while revenue increased from the £1.2 billion reported for 2021, as EBITDA rose by 69% from £335 million to £565 million.
The company completed 31 strategic acquisitions in the year, including TigerRisk, which, combined with the signed acquisition of March R.S., takes revenue on a pro forma basis to more than £2 billion, and EBITDA to £648 million.
Howden says that 1,000 new employees joined the firm in 2022. At the same time, £2.9 billion of fresh investment was made into the Group’s unique capital model from long-term equity and debt holders, which will be used to support the firm’s sustainable growth strategy in full year 2022.
At its DUAL subsidiary, gross written premiums doubled to £2.2 billion on the back of the integration of Align and organic growth of 26%. The company welcomed 400 new employees during the year, and launched several new initiatives.
Looking forward, Howden notes that it expects the macroeconomic and geopolitical challenges experienced by many of its clients in 2022 to persist, but adds that in this environment, it believes insurance can deliver the greatest value and act as a force for good.
David Howden, Chief Executive Officer (CEO), commented: “Howden Group delivered exceptional financial performance in 2022, led by 19% organic growth, an accomplishment that is even more remarkable given it follows the stellar 19% growth in 2021. On a pro forma basis, we have almost doubled our revenue in just 12 months. Howden’s differentiated capital model, blending employee ownership with long-term institutional shareholders continues to provide the business with opportunity, strength and sustainability when it comes to deploying capital. We have welcomed 1,000 new employee shareholders to the Group this year, bringing the total number in the Group to 3,500, alongside the Howden Group Foundation, which is a significant shareholder in the business.
“The combination of Howden and TigerRisk represents the final strategic pillar of our Group architecture, providing a fresh dynamic for clients and a full spectrum offer across insurance, specialty, reinsurance, underwriting, capital markets and advisory. Howden Tiger creates a new force that has long been needed in the reinsurance market, a leader in many high growth specialist areas such as MGAs and Facultative, and critically a massive magnet for talent. Over the last 18 months, we have executed relentlessly on our strategy of building a business for, and over, the long term. We’ve done this by joining with other entrepreneurial companies who want to continue to grow and by attracting and retaining the best talent, all of whom share in our vision and passion.
“We have also established unrivalled reach and expertise in our home broking market of the UK and Ireland, and are a growing force in Europe. Almost half of our 31 acquisitions over the past twelve months were in continental Europe, and most recently that of March R.S. (post period end), reflecting our ambition to create a preeminent broking business of scale in Europe, a region that has long been our heartland. Our position has been cemented globally as the only player with the size, scale and expertise to rival the big three.
“As climate, macroeconomic and geopolitical uncertainty continues, the insurance sector has a tremendous opportunity to demonstrate its value to society. At times like this it’s important that we challenge ourselves to find new ways of helping our clients confront a dynamic and interrelated risk environment, such as our product insuring the authenticity of carbon credits and our work on using insurance to fund disaster relief projects. Our focus on insurance as a force for good, innovation and our entrepreneurial mindset are among the key reasons that more and more clients are turning to Howden.”
