The results are in for the Ardonagh Group (Ardonagh) as it becomes the latest insurance business to reveal how it fared with its Q1 2021 results. Group income is up 24.8% to £199.7 million for the quarter while its adjusted EBITDA is up 52% to £66.3 million, attributed to a combination of acquisitions and continued organic growth.
Ardonagh highlighted that it had enjoyed particularly strong organic growth in specialty, driven by a successful producer hiring programme.
Meanwhile, the group has completed several acquisitions during the period, including telematics specialist Marmalade, PI broker Hera Indemnity, Australia’s largest independently owned intermediary network, Resilium, and the US healthcare and benefits underwriter AccuRisk Solutions. Operating costs for the group were up 14.6% from Q1 2020’s figure of £116.5 million, now standing at £133.4 million.
The group emphasised that its margins were improved by growth initiatives including carrier facilities, closer collaboration across the organisation and platform integration. Its operating cash conversion was maintained at 97% and free cash flow was positive for the 12 months to March 31, 2021. Available liquidity was maintained at over £290 million.
Commenting on the results, Ardonagh’s group CEO David Ross said the group continues to deliver strong results across all its operating platforms. Ardonagh has created “a compelling proposition” for individuals and companies that value independence, agility and scale, he said, and every addition made to the group has broadened its client proposition. This has made Ardonagh stronger as a group, while also strengthing the offering of each acquired company as part of a larger collective.
“We will maintain our disciplined approach to acquisitions,” he said, “while continuing to integrate within the platforms and collaborate to deliver the best solutions for our clients.”
