It was just over a year ago that Autonet, Chase Templeton, Direct Group, Price Forbes, and Towergate came together to form The Ardonagh Group. Now – with further additions in the form of Healthy Pets, Carole Nash, and Mastercover – the diversified intermediary is enjoying higher income as it steams ahead with its integration.
Announcing its financial results for the first half of 2018, Ardonagh reported a 9.1% rise in income – from £252 million in the same period last year to £275 million this time around – and an increase of 17.6% in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) to £66.5 million. Broken down in terms of quarters, the global brokerage cited 11.4% income growth in the second quarter and 6.8% for the first.
In addition, Ardonagh said its multi-million pound investment (£5.5 million) in new producer hires in specialty & international, managing general agent, and insurance broking will drive further organic development. Meanwhile integration has been described as “on track,” with Carole Nash benefitting from Autonet’s digital capabilities as well as Towergate Retail from Direct Group’s operating platform.
Commenting on the half-year performance, chief executive David Ross said: “Our focus for the first half of this year has been on embedding the operational structure of a group that is unrecognisable from what it was 12 months ago. That said, we remained agile and moved quickly to make strategic book buys and continued to attract a flight of talent throughout the company.
“The teams across Ardonagh can be rightfully proud of what we have achieved. With customers from motorbike riders through to renewable energy providers, no part of the insurance distribution chain works in isolation, and we’re pleased to see real value creation from collaboration within the group.”
In chair John Tiner’s view, the results are indicative of the group’s successful strategy to combine accretive acquisitions with organic growth and effective cost management.
“We were delighted to be recognised as a Top 20 insurance broker by AM Best’s Global Insurance Broker Survey, the only new entrant in a competitive field, and a reflection of our trajectory and ambition,” added Ross. “We now look towards the second half of the year as the largest diversified intermediary in the UK, a platform from which we will continue to flourish.”
