The Ardonagh Group, the London-based owner of insurer Arachas, has secured investment from private equity firm Stone Point Capital LLP in a deal that values the group at $14bn (€13.4bn).
The equity investment by funds managed by Stone Point is expected to be completed in mid-2025, pending regulatory approval, at which point Stone Point will become a significant shareholder in Ardonagh.
Major shareholders in Ardonagh also include Madison Dearborn Partners, HPS Investment Partners, a wholly-owned subsidiary of the Abu Dhabi Investment Authority and several other large global institutions.
Jim Carey, co-CEO of Stone Point, commented: “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.”
Ardonagh was established in 2017 through the merger of several UK insurance businesses providing wholesale, retail and specialist coverage. The group is now a top 20 broker globally, placing $18bn of premiums and operating across the entire insurance value chain.
The investment caps what Ardonagh described as a "pivotal" year following a milestone refinancing in March, the merger of its personal lines business into Marketstudy in June, and take-private of PSC Insurance Group in Australia in October.
Ardonagh made Arachas its first acquisition in 2020, and the Irish-based insurer now has 700 employees across 16 offices nationwide.
This year, Arachas has acquired Gerry O'Mahony Insurances in Limerick, Tom Fogarty Insurance Brokers in Tipperary Town, Gilmartin Insurances in Leitrim, and Waterford-based broker McDonald Dwyer Reddy & Byrne earlier this month.
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 $14bn business we are today.
"Their support reflects a strong 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.”
Connor Brennan, executive chairman of Ardonagh Global Partners, said Stone Point's backing would provide an excellent platform for Arachas to grow and supports its ambition to strengthen its presence in Ireland.
Fenchurch Advisory Partners and Goldman Sachs Investment Banking are acting as financial advisors to Ardonagh. The group operates in more than 30 countries and employs more than 10,000 people.
Photo: Micheál Martin opening the Ardonagh Group analytics lab in Westmeath last year. (Pic: Ardonagh Group)
