Ardonagh’s Ross reports strong growth in 2018 annual results
UK-based broker Ardonagh Group chief executive David Ross said the firm had “a number of reasons to celebrate” as it unveiled “strong income growth” in its 2018 year end results.
Total income for the group was up 28.2 percent to £527.1 million in 2018 from £411.2 million in 2017.
The company said the growth was driven by mergers and acquisitions, underlying organic income growth of 2.5 percent, and delivery of £18 million in cost saving initiatives. Ardonagh reported that this is the sixth consecutive quarter of organic income growth.
Broking income was £295.1 million in 2018 up 25.6 percent from £235 million in 2017, specialty channel income rose to £95.2 million, an increase of 103.5 per cent from £46.8 million the year before, and the group’s MGA channel income grew to £130.9 million, up 2 percent from £128.4 million in 2017.
Ardonagh said it had seen strong new business growth across most segments, highlighting Autonet & Carole Nash growth of 12.3 percent, and increases in insurance broking of 5.9 percent.
The company said it had made discretionary investments of £16m in 2017 and £18m in 2018 for new producer hires to drive future revenue growth. A number of these hires are the subject of a legal challenge by competitor Arthur J Gallagher.
However, this has not dampened the CEO’s pleasure at the results.
Ross said: “We have a number of reasons to celebrate Ardonagh’s progress in 2018. The hard work behind the scenes to improve our systems and processes is paying off and has paved the way to cross-group collaboration and organic growth.
Whether that’s Carole Nash benefitting from Autonet’s digital platforms or Price Forbes and Geo Specialty teaming up to underwrite and place terrorism cover for a client of an advisory branch, our community of entrepreneurial thinkers with deep customer and technical understanding is creating something exciting.
“Our position in the wider market is not to be underestimated. In a year of significant industry consolidation, we are proud to offer a credible alternative of scale to insurers and clients.
That alternative is getting stronger by the day, as our systems integrations give us a deeper data-driven understanding of the risks our clients face.
“Aside from the headline profit and growth metrics, one figure I’m particularly proud of is the number of people who have chosen to continue their careers with the group. In our largest segments, voluntary staff turnover has fallen to less than half of what it was at the beginning of 2015. This is no surprise given the vast progress made in engaging with our people. By recognising their input through channels such as our annual Spotlight Awards, where the very best teams and individuals are celebrated and rewarded, through to improved maternity pay and a commitment to increased investment in female leaders, the Ardonagh Group of companies are increasingly employers of choice.”
Chairman John Tiner said: “Today we report on the group’s first full year of operation; a pivotal year for the business. We have reshaped our portfolio, through the acquisition of Swinton, the leading personal lines brand, and the disposal of both our claims and commercial MGA businesses. We also largely completed the turnaround of the Towergate business that the current shareholders, board and management team inherited in 2015.”
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