Ardonagh operating profit rises as expansion continues

23 May 2022

Ardonagh Group first quarter operating profit rose to £29.4 million ($52.1 million) from £17.1 million ($30.3 million) driven by acquisitions and existing businesses.

Income, including commissions, fees and other contributions, increased 44% to £287.5 million ($509.5 million).

“The momentum behind the group continued in the first three months of the year with strong execution on organic growth, operational efficiency and group-wide opportunities together with fast growth in Specialty and International,” CEO David Ross said.

“Our pipeline of potential acquisitions and producer hires is robust as businesses and people seek environments where entrepreneurialism and a client-focused culture meet scale.”

Organic income for the group, which includes Resilium in Australia, rose 8.2%, while the company invested £15 million ($26.6 million) in growth drivers, including new hires, IT system improvements and projects to deliver new business and long-term savings and synergies.

Available liquidity stood at £688 million ($1.2 billion) as of March 31.

Ardonagh’s reported loss for the quarter deepened to £37.4 million ($66.3 million) from £22.8 million ($40.4 million) as the operating result and a tax credit boost were offset by an increase in financing costs.