Ardonagh Group publishes full year results for 2023 | Insurance business America
The company looks back on the milestones of the past year
Insurance News
By Kenneth Araullo
Ardonagh Group has published its financial results for the year ended December 31, 2023, showing growth across its businesses.
The brokerage group’s forma revenue reached $1.9 billion, with pro forma adjusted EBITDA of $695 million, including all acquisitions up to March 20, 2024 and forecast growth and efficiency improvements, but excluding the Ardonagh Retail department.
There was also an increase in reported revenue, rising 33.5% to $1.6 billion, and adjusted EBITDA rose 42.5% to $522 million, excluding Ardonagh Retail, which just merged with Markerstudy.
A 200 basis point increase in adjusted EBITDA margin from 30.3% to 32.3% was driven by 11% organic revenue growth and continued realization of synergies. For Ardonagh, February 2024 marked the successful refinancing of the group’s debt, which resulted in a 29% reduction in average cash interest expense, significantly strengthening liquidity – including an undrawn CAR facility totaling $573 million – and extended the debt maturity to 2031.
Following the refinancing and until the sale of Ardonagh Retail, total net debt was 5.6x, with senior secured net debt at 4.0x.
Ardonagh Group in 2023
The group highlighted its accelerated inorganic growth with 67 acquisitions completed in 2023, including notable additions in Australia, the Netherlands, Greece and Switzerland, as well as several smaller transactions.
In September 2023, a merger deal was completed for Ardonagh Retail with Markerstudy, valuing the business at $1.5 billion and receiving approval from the UK Competition and Markets Authority until March 26, 2024. Last year also saw 1,698 new employees recruited through acquisitions and direct hires, marking the launch of the group’s first graduate program.
In addition, Ardonagh made its first disclosure under the United Nations Principles for Sustainable Insurance, linked to the publication of its 2023 Sustainability Report.
“These results reflect a very strong year for our group as we accelerated the pace of our targeted global expansion and continued to benefit from investment in organic initiatives,” said David Ross, group CEO.
He also highlighted the group’s focus on acquiring companies capable of further acquisitions, underpinning its strategy of leveraging a portfolio of independent specialists to scale operations.
Group Chairman John Tiner also commented on Ardonagh’s transformative development, noting the global diversification of revenue streams, with almost 70% now originating outside the UK.
“2023 was a record year in many respects, however I am confident that Ardonagh Group will continue to build on the momentum created in 2024, exceeding expectations and delivering high quality growth and sustainable results for our stakeholders,” Tiner said.
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2024-03-28 10:00:00
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