The parent group of insurance broker Arachas has secured a $2.5 billion equity investment led by funds managed by US private equity firm Stone Point Capital, valuing the group $14bn.
Groups connected to Stone Point such as Madison Dearborn Partners (MDS) and HPS Investment Partners also participated in the investment in the Ardonagh Group.
Stone Point, MDS and HPS and other large global institutions such as a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) now hold a significant stake in Ardonagh.
The group said it is well place to capture numerous growth opportunities in the global property and casualty insurance market through its platform of regional businesses.
“Stone Point’s investment and the success of the co-investment process stand together as a resounding endorsement of Ardonagh," said David Ross, chief executive of the Ardonagh Group.
"Amid a backdrop of global economic uncertainty, our unique proposition, track record and global platform attracted world-class investors who share our vision.
“We are proud to welcome Stone Point into the fold in this next chapter alongside long-term partners whose support has been invaluable in our journey to becoming a $14bn company. With such strong financial backing, Ardonagh has unparalleled empowerment to capitalise on future growth opportunities and deliver value to our clients, investors and people.”
Jim Carey, co-chief executive of Stone Point, commented: “We are excited to partner with Ardonagh, as well as with MDP, HPS and ADIA. Ardonagh has distinguished itself as a leading platform in the global insurance distribution industry, and we believe that the company is well-positioned for continued growth.”
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 grown to place $18bn of premiums and now operates across the entire insurance distribution value chain.
The group acquired Arachas in 2020, and the company has since become one of Ireland's largest insurance intermediaries with 700 employees across 16 offices nationwide.
Arachas transacted four acquisitions last year for Waterford-based broker McDonald Dwyer Reddy & Byrne, Gerry O’Mahony Insurances in Limerick, and Tom Fogarty Insurance Brokers in Tipperary Town and Gilmartin Insurances in Leitrim.
This year it has taken over Mulryan O' Gorman Insurance Brokers in Galway, Insight Insurance Brokers in Cork and Craftinsure Ireland Limited, the country’s only pure quote-and-buy marine insurer.
"Stone Point Capital’s support is a significant boost for us as we enter this new phase of expansion into continental Europe," said Conor Brennan, chief executive of Ardonagh Europe.
"It will play a key role in consolidating our market leading position in the Irish market and on building on the significant progress we have made in key European markets over the last three years. We see so much opportunity in front of us to partner with ambitious and likeminded broker partners all over Europe"
Arodagh itself completed 68 acquisitions over the past year, including a AUS$2.3bn deal to take Australia's PSC Insurance Group private.
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.
Photo: David Ross. (Pic: Supplied)
