Ardonagh Group has completed its previously announced $2.5 billion equity investment led by funds managed by Stone Point Capital, in a transaction that valued the UK broker consolidator at $14 billion.
Following the equity investment, US-based private equity firm Stone Point is now a “significant” shareholder in the group alongside Madison Dearborn Partners and HPS Investment Partners (who also participated in the latest investment round), as well as other global institutions.
The transaction was announced in December 2024, with the Ardonagh valuation represents a near doubling since it was valued at $7.5 billion when Abu Dhabi Investment Authority bought into it in 2021. MDP and HPS led an investor consortium that took over Ardonagh in 2019.
Ardonagh said it will use the proceeds from the latest equity investment round to capture growth opportunities in the global P&C insurance market through its various regional in-market distribution platforms.
Founded in 2017 through the merger of several UK insurance businesses to create a diversified group providing wholesale, retail and specialist insurance solutions, Ardonagh has since transformed into a leading global broking group placing $18 billion of premiums and operating across the entire insurance distribution value chain.
Its global expansion began in 2020 with the acquisition of Arachas, which has grown into one of the leading insurance intermediaries in Ireland, with over 700 employees at 16 offices located throughout the country.
With Ardonagh’s backing, Arachas completed four deals in 2024, including the purchase of Waterford-based broker McDonald Dwyer Reddy & Byrne, Gerry O’Mahony Insurances in Limerick, Tom Fogarty Insurance Brokers in Tipperary Town and Gilmartin Insurances in Leitrim.
So far this year it has bought Mulryan O’ Gorman Insurance Brokers in Galway, Insight Insurance Brokers in Cork and most recently, Craftinsure Ireland Limited – the country’s only pure Quote and Buy marine insurer.
“Stone Point’s investment and the success of the co-investment process stand together as a resounding endorsement of Ardonagh. Amid a backdrop of global economic uncertainty, our unique proposition, track record and global platform attracted world-class investors who share our vision,” commented David Ross, CEO of The Ardonagh Group.
“We are proud to welcome Stone Point into the fold in this next chapter alongside long-term partners whose support has been invaluable in our journey to becoming a $14 billion company. With such strong financial backing, Ardonagh has unparalleled empowerment to capitalise on future growth opportunities and deliver value to our clients, investors and people,” he added.
Completion of the deal follows the group’s refinancing in February to simplify its capital structure, as well as notable M&A activity in the second half of last year as Ardonagh completed the merger of its personal lines business into Markerstudy and undertook a $2.3 billion take-private of Australia’s PSC Insurance Group.
