Broker Ardonagh Group Forms Unit for International M&A; Makes 1st U.S. Acquisition

London-based broker the Ardonagh Group announced the launch of Ardonagh Global Partners (AGP), a unit focused on international mergers and acquisitions.

The company also announced its first acquisition in the United States, AccuRisk Solutions, following on the heels of recent purchases in the UK and Australia.

AGP’s strategy is to invest in leading platforms operating in attractive markets and product verticals outside of the UK and Europe and will sit within Ardonagh’s new International platform, said the company in a statement.

Following refinancing in the summer of 2020, Ardonagh said it has committed to invest £155 million ($215 million) in M&A.

AGP will be led by Des O’Connor, who ran a successful buy-and-build strategy as CEO of Bravo Group, the largest network of independent insurance brokers in the UK which became part of Ardonagh in 2020.

AGP then detailed its recent acquisitions for which financial terms were not disclosed.

AGP said it agreed today to acquire U.S. healthcare and benefits managing general underwriter, AccuRisk, in a joint venture with the Amynta Group.

Based in Chicago, AccuRisk specializes in medical stop loss, occupational accident and supplemental health products for small and mid-sized businesses, said Ardonagh, noting that the U.S. medical stop loss market has rapidly expanded from $10 billion in 2010 to $24 billion in 2020, as employers look for alternatives to the fully insured market.

AccuRisk also has expanded into the captive and ancillary service lines as these markets have significant U.S. growth opportunities. Ardonagh said the AccuRisk acquisition will allow it to enter the strategically important U.S. market.

In February 2021, AGP acquired Resilium Insurance Broking, Australia’s largest independently owned intermediary network. Resilium will act as the centerpiece of the company’s Australian operations and allow Ardonagh to leverage opportunities for the wider portfolio within Australia.

In March 2021, AGP bought UK-based M&A specialist broker Hemsley Wynne Furlonge, an M&A insurance broker which structures bespoke insurance solutions for transactional risks. It specializes in warranty & indemnity, tax, contingent risk, and environmental indemnity products. With offices in London and Germany, the business has grown substantially since its launch in 2014.

All three acquisitions have been funded through the group’s committed acquisition facility, the company said.

Ardonagh said it generated 9% of its pro forma income of £836 million ($1.2 billion) from its international platform in 2020, from an almost standing start in 2019, demonstrating the rapid growth of this segment. The group expects further substantial growth and investment in Ardonagh International over the next 12 months and beyond.

“The creation of Ardonagh Global Partners opens an exciting new chapter in our story with presence in three continents in addition to our global wholesale operations,” commented David Ross, chief executive of Ardonagh.

“With every acquisition, we aim to become a strategic partner to high quality businesses and management teams, leveraging our collective scale and expertise to build value for all concerned.”

The Ardonagh Group was established in 2017 with the backing of majority shareholders HPS and Madison Dearborn Partners, two blue chip U.S.-based private equity groups. Ardonagh Group also owns such companies as Price Forbes, Thames Underwriting, and Towergate.

Source: The Ardonagh Group Ltd.

Topics Mergers & Acquisitions USA Agencies