The Ardonagh Group has disclosed its financial outcomes in the financial year ending December 31, 2023, showcasing growth in its business lines.
The broker group’s forma revenue reached $1.9 billion, with a pro forma adjusted EBITDA of $695 million, inclusive of all acquisitions up to March 20, 2024, as well as projected growth and efficiency gains, yet excluding the Ardonagh Retail division.
An increase was also observed in the reported revenue, climbing 33.5% to $1.6 billion, and adjusted EBITDA surged by 42.5% to $522 million, not accounting for Ardonagh Retail, which is in the process of merging with Markerstudy.
A 200-basis points enhancement in the adjusted EBITDA margin from 30.3% to 32.3% was attributed to an 11% organic revenue growth and the ongoing realisation of synergies. For Ardonagh, February 2024 marked the successful refinancing of the group's debts, leading to a 29% reduction in run-rate cash interest expenses, substantially bolstering liquidity—including an undrawn CAR facility totalling $573 million—and extending debt maturities to 2031.
Post-refinancing and pending the sale of Ardonagh Retail, the total net leverage was noted at 5.6 times, with senior secured net leverage at 4.0 times.
The group highlighted its accelerated inorganic growth, with 67 acquisitions completed in 2023, including notable additions in Australia, the Netherlands, Greece, and Switzerland, alongside several smaller transactions.
A merger agreement for Ardonagh Retail with Markerstudy, valuing the division at $1.5 billion, was finalised in September 2023, receiving clearance from the UK Competitions and Market Authority by March 26, 2024. The past year also saw the induction of 1,698 new employees through acquisitions and direct hires, marking the launch of the group's first graduate scheme.
Additionally, Ardonagh undertook its inaugural disclosure under the United Nations Principles for Sustainable Insurance, coupled with the publication of its 2023 Sustainability Report.
“These results reflect a very strong year for our Group as we stepped up the pace of our focused global expansion and continue to benefit from investment in organic initiatives,” group CEO David Ross said.
He further highlighted the group's emphasis on acquiring entities capable of further acquisitions, underpinning the strategy of leveraging a portfolio of independent specialists to scale operations.
John Tiner, group chairman, also remarked on the transformative development of Ardonagh, noting the global diversification of revenue sources, with nearly 70% now originating outside the UK.
“2023 was a record year in many ways, yet I am convinced that in 2024 The Ardonagh Group will continue to build on the momentum created, surpassing expectations and delivering high quality growth and sustainable outcomes for our stakeholders,” Tiner said.
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