Independent insurance broker The Ardonagh Group has seen a rise in full year 2023 reported income when compared with the prior year to $1.6 billion, as reported adjusted EBITDA increased 42.5% to $522 million.
For 2023, the broker has reported pro forma income of $1.9 billion and pro forma adjusted EBITDA of $695 million. These figures include completed and committed acquisitions to 20th March 2024 and annualised growth and savings initiatives, excluding Ardonagh Retail.
The reported adjusted EBITDA margin grew by 200bps from 30.3% in 2022 to 32.3% for in 2023, driven by 11% organic growth and continued delivery of synergy initiatives.
The broker also highlights the successful refinancing of group borrowings completed in February 2024. Run-rate cash interest costs were reduced by 29%, with significantly increased available liquidity (including undrawn CAR facilities of $573 million) and maturities extended to 2031.
During 2023, The Ardonagh Group expanded with 67 deals finalised, while the firm also agreed the merger of Ardonagh Retail with Markerstudy in September 2023, valuing it at $1.5 billion, subject to regulatory approvals.
All in all, the broker welcomed 1,698 people from acquisitions and new hires last year, including its first
graduate scheme cohort.
David Ross, Group Chief Executive Officer, commented: “These results reflect a very strong year for our Group as we stepped up the pace of our focused global expansion and continue to benefit from investment in organic initiatives. We spent the first five years as a Group investing in assets that can themselves make add-on acquisitions, and harness the opportunities that come with being proudly part of a portfolio of independent specialists with powerful scale.
“2023 was a record year for M&A with 67 acquisitions completed adding $101m of Pro Forma Adjusted EBITDA to the Group, with over 80% of M&A investment made in Europe and Australia. We welcomed four regional leaders during the year across Australia, the Netherlands, Greece and Switzerland, and most recently entered the Italian market with the agreement to acquire Mediass.
“Ardonagh received strong support from multi-currency public and private lending markets during the group’s refinancing at the beginning of 2024. To have completed an over-subscribed offer of this magnitude is a huge vote of confidence in the company, and an excellent outcome to continue to support our expansive strategy into 2024 and beyond.”
John Tiner, Group Chairman, said: “Having celebrated The Ardonagh Group’s fifth anniversary in 2022, this past year has witnessed a step change in the Group’s development. With the expansion of the business, our footprint has changed dramatically, with now almost 70% of revenues coming from outside the UK.
“As the integration work progresses, the Board continues to promote our role as a company to serve and benefit all our stakeholders, including colleagues, clients, business partners, shareholders and the communities in which we operate. Ardonagh’s people continue to do amazing work for their clients and their communities, with over $900,000 donated in 2023 to hundreds of charities connected to our people.
“2023 was a record year in many ways, yet I am convinced that in 2024 The Ardonagh Group will continue to build on the momentum created, surpassing expectations and delivering high quality growth and sustainable outcomes for our stakeholders.”
