The Ardonagh Group has announced the acquisition of the entire share capital of the holding company of Bravo Investments Holdings Limited and the holding company of Arachas Topco Limited from funds managed by HPS Investment Partners, LLC and Madison Dearborn Partners, LLC.
Arachas is the largest SME-focused commercial insurance broker in Ireland, with specialised offerings and a nationwide reach that has allowed the business to “quickly gain a leading position” in its core markets.
Ardonagh said that with 139,000 policies under management as of 31 December 2019, Arachas is the Republic of Ireland’s largest commercial insurance broker. Arachas delivers exclusive insurance solutions through a multi-channel distribution strategy which comprises a retail footprint of six offices and wholesale footprint of approximately 400 third-party brokers across the Republic of Ireland.
Within the group, the company said Arachas will provide an “incremental” set of product capabilities and carrier relationships for the broader platform to leverage while “further enhancing” the group’s position, particularly among small and medium enterprise customers.
Meanwhile, Bravo consists of two complementary segments which operate under three brands: Broker Network, Compass and Ethos Broking. Broker Network and Compass are two well-established network service providers to regional insurance brokers. They have approximately 750 members across the United Kingdom, equivalent to around 60% of all UK network membership.
In addition, Ethos Broking is a “highly active” acquisition platform focused on the UK regional insurance acquiring over 30 independent brokers, through a “Hub and Spoke” acquisition strategy between November 2016 and April 2020.
Ardonagh added that for the 12 month period ended 31 March 2020, Bravo placed approximately £2.6bn of GWP, both directly through Ethos and indirectly through its networks.
Chief executive, David Ross, said: “Today’s announcements represent an important step in the continued development of Ardonagh’s multi-product and multi-channel platform through sustained focus on organic growth and selective acquisition strategy, as we continue in our ambition to excel as the largest independent insurance broker in the United Kingdom and amongst the largest globally.
“Bravo and Arachas are two strong, resilient businesses which are highly complementary to the Ardonagh platform and will allow us to further increase our diversification across products, channels, carriers, income producers. Our highly diversified business has enabled us to remain resilient as we navigate the recent challenges presented by the Covid-19 pandemic.”