Insurance broker Ardonagh secures landmark Stone Point investment

The Ardonagh Group, an independent insurance broker, has secured an equity investment from funds managed by US-domiciled private equity firm, Stone Point Capital LLC, which values the group at $14 billion.

This landmark transaction is expected to complete in mid-2025 and sees Stone Point become a significant shareholder in Ardonagh, alongside Madison Dearborn Partners, HPS Investment Partners, and co-investors including a wholly owned subsidiary of the Abu Dhabi Investment Authority amongst several other large global institutions.

Ardonagh was founded in 2017 through the merger of several UK insurance businesses to create a diversified group providing wholesale, retail, and specialist insurance solutions. Since then, the broker has placed $18 billion in premiums and operates across the entire insurance distribution value chain.

2024 has been a pivotal year for Ardonagh. In March, the company completed a milestone refinancing, followed by the merger of its personal lines business into Markerstudy in June, and the acquisition of Australia’s PSC Insurance Group in October for A$2.3 billion.

Ardonagh notes that its global expansion began in 2020 with the acquisition of Arachas, and since then, the broker has invested in leading insurance businesses in diverse geographies.

As of today, the UK remains the Group’s largest single market operating under several leading brands. This is balanced by what the firm describes as fast-growing platforms in Europe, APAC, and Latin America accounting for over 50% of its global property and casualty (P&C) revenues.

Ardonagh’s position in the global specialty market was bolstered in 2021 by acquiring BGC’s insurance operations. Its specialty wholesale proposition, operating under the Price Forbes brand, is now the largest independent broker at Lloyd’s with 2,000 people placing $7 billion in gross written premiums.

David Ross, Chief Executive Officer (CEO), The Ardonagh Group, commented, “Stone Point’s investment in the Group marks a new phase in our extraordinary journey over the past few years to become the $14 billion business we are today. Their support reflects conviction in the strength of Ardonagh’s business and continued momentum and redoubles our commitment to independence in a consolidating market.

“We look ahead to a future backed by partners whose deep understanding of our industry, expertise and networks will be invaluable as we capitalise on Ardonagh’s unique position in the global insurance market to deliver value to our clients, shareholders and people.”

Jim Carey, Co-CEO of Stone Point, commented, “We are thrilled to partner with the Ardonagh management team alongside MDP and HPS. We believe that Ardonagh is a leading platform in the global insurance distribution space, with an impressive track record of both organic and inorganic growth.”

Vahe Dombalagian, Managing Partner, Madison Dearborn Partners, stated, “We welcome Stone Point to what has been a highly successful investment partnership and are confident that the Stone Point team will be tremendously additive to Ardonagh’s continued growth and success.”

Scot French, a Governing Partner, HPS, added, “We are excited to continue our longstanding partnership with Ardonagh and are delighted that Stone Point, with a world-class reputation in financial services, is investing in Ardonagh. We view their participation as a testament to Ardonagh’s success and a benefit to the company in terms of the operational and strategic expertise they bring to bear.”

Fenchurch Advisory Partners, Goldman Sachs Investment Banking & Co. LLC and Morgan Stanley & Co. LLC are Ardonagh’s financial advisors. Meanwhile, Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor to Ardonagh, while Debevoise & Plimpton LLP is acting as legal advisor to Stone Point.