Ardonagh adjusted earnings jump after 'defining year'

Ardonagh Group adjusted earnings have increased strongly after the company completed major acquisitions and grew existing businesses in what it described as a defining year.

Earnings before interest tax, depreciation and amortisation (EBITDA), adjusted for various acquisition, restructuring and other costs and changes, increased 42.4% to £318.5 million ($558.3 million).

On a reported basis, at the top line, total income rose 32.5% to £945.8 million ($1.66 billion), operating profit more than doubled to £98.7 million ($173 million) and the loss for the year narrowed to £73.4 million ($128.7 million) from £206.3 million ($361.6 million).

The group last year launched Ardonagh International with the creation of Ardonagh Global Partners and Ardonagh Europe, welcomed colleagues from Australia and the US and reached an agreement to acquire MDS Group, its largest international acquisition to date, CEO David Ross says.

Ardonagh Specialty has also become the largest independent broking platform in the London market, with Ed Broking, Besso and Piiq Partners joining Price Forbes, Bishopsgate, Compass London Markets and Inver Re in November, he says.

In Australia, Ardonagh Global Partners includes intermediary network Resilium and Ethos Broking Australia, which invests in or directly acquires brokers.

“The group we have built is unique in our industry both because of our diversification and our operating model, with each of our platforms operationally integrated, independent, and yet culturally invested in each other,” Mr Ross said.

Private equity firms Madison Dearborn Partners (MDP) and HPS Investment Partners are long-term majority shareholders in Ardonagh.

The firms in December renewed their commitment to the group. Under a transaction, co-investors, including an Abu Dhabi Investment Authority subsidiary, and several other global institutions are acquiring equity through accounts managed by MDP and HPS.

“The strength of our model was resoundingly endorsed by new equity investment led by our long-term shareholders, which we announced at the end of 2021, valuing the Group at $US7.5 billion ($10 billion) and representing a firm commitment to our independence for years to come,” Mr Ross said.