The latest investment announcement from Ardonagh, which gives the group more leverage for future acquisitions. It’s been a busy year for Ardonagh as they completed on the PSC deal, bought Rowett, BP and Solutions Healthcare. More to come in 2025? IE says yes, consolidation is inevitable across the insurance sector and the Aviva-Direct Line potential deal is just one high profile example. Tech now provides the platform for cost and time savings – those who embrace it can be more competitive on pricing.
Here’s the word;
The Ardonagh Group (“Ardonagh” or “the Group”), one of the world’s largest independent insurance distribution platforms and a top 20 global broker, today announces an equity investment from funds managed by US-based private equity firm Stone Point Capital LLC (“Stone Point”), a leading alternative investment management firm focused on the global financial services and related industries. The investment values Ardonagh at $14 billion.
Completion is expected to take place in mid-2025, at which point Stone Point will become a significant shareholder in Ardonagh, alongside Madison Dearborn Partners (“MDP”), HPS Investment Partners (“HPS”), as well as co-investors including a wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) and several other large global institutions.
The transaction caps a pivotal year for the Group, which completed a milestone refinancing in March, followed by the completion of the merger of its personal lines business into Markerstudy in June and the take-private of Australia’s PSC Insurance Group (“PSC”) in October.
Founded in 2017 through the merger of several UK insurance businesses to create a diversified group providing wholesale, retail and specialist insurance solutions, Ardonagh has since transformed into a top 20 global broking group placing $18 billion of premiums and operating across the entire insurance distribution value chain.
The Group’s global expansion began in 2020 with the acquisition of Arachas, which has grown into one of the leading insurance intermediaries in Ireland. Since then, Ardonagh has invested in leading insurance businesses in diverse geographies, most recently completing the A$2.3 billion landmark take-private of PSC in Australia. The deal saw PSC merge with Envest to create one of the largest platforms in the APAC region and significantly bolstered Ardonagh’s position in the UK regional market and the London Market.
As of today, the UK remains the Group’s largest single market operating under a number of leading brands and is balanced by fast-growing platforms in Europe, APAC and Latin America which together account for over 50% of the Group’s global property and casualty (P&C) revenues.
Ardonagh’s position in the global specialty market was significantly enhanced in 2021 by the acquisition of BGC’s insurance operations. Its specialty wholesale proposition, operating under the Price Forbes brand, is now the largest independent broker at Lloyd’s with 2,000 people placing $7 billion in gross written premiums.
With the added support of Stone Point, Ardonagh remains well placed to capture numerous growth opportunities in the global P&C insurance market through its platform of businesses which each have a strong regional in-market presence.
David Ross, CEO of The Ardonagh Group, said: “Stone Point’s investment in the Group marks a new phase in our extraordinary journey over the past few years to become the $14 billion business we are today. Their support reflects conviction in the strength of Ardonagh’s business and continued momentum and redoubles our commitment to independence in a consolidating market.
“We look ahead to a future backed by partners whose deep understanding of our industry, expertise and networks will be invaluable as we capitalise on Ardonagh’s unique position in the global insurance market to deliver value to our clients, shareholders and people.”
Jim Carey, Co-CEO of Stone Point, commented: “We are thrilled to partner with the Ardonagh management team alongside MDP and HPS. We believe that Ardonagh is a leading platform in the global insurance distribution space, with an impressive track record of both organic and inorganic growth.”
Vahe Dombalagian, Managing Partner of Madison Dearborn Partners, added: “We welcome Stone Point to what has been a highly successful investment partnership and are confident that the Stone Point team will be tremendously additive to Ardonagh’s continued growth and success.”
Scot French, a Governing Partner of HPS, said: “We are excited to continue our longstanding partnership with Ardonagh and are delighted that Stone Point, with a world class reputation in financial services, is investing in Ardonagh. We view their participation as a testament to Ardonagh’s success and a benefit to the company in terms of the operational and strategic expertise they bring to bear.”
The transaction is subject to customary closing conditions including regulatory approvals.
Fenchurch Advisory Partners, Goldman Sachs Investment Banking & Co. LLC and Morgan Stanley & Co. LLC are acting as financial advisors to Ardonagh. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Ardonagh, while Debevoise & Plimpton LLP is acting as legal advisor to Stone Point.
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