The Ardonagh Group, which “continues to be acquisitive,” has published its 65-page report to investors for the nine months ended September 30.
The company’s interim financial results show that Ardonagh posted a £133.2 million loss for the period – a tougher period compared to the £65.7 million loss in the same nine-month span in 2019. The insurance brokerage took the hit despite the growth in both its total income and operating profit.
“Total income increased by £14.1 million to £519.5 million,” reported Ardonagh, “and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by £20.7 million to £165.2 million.”
It noted further: “There has been income growth which is predominantly a result of the combination of material acquisitions alongside organic growth in both advisory and specialty partially offset by the effect of COVID-19 across the business and the impact of transition to a new premium finance commercial arrangement during 2019 in retail.”
As for its operating result, the group – the segments of which consist of Ardonagh Advisory, Ardonagh Retail, Ardonagh Specialty, and Ardonagh International – saw a £35.8 million lift to finish at an operating profit of £44.5 million in the period.
However, the abovementioned figure was offset by what Ardonagh said were one-off costs of £81.6 million. The amount relates to three acquisitions and the group’s refinancing. You can read more about the latter here.
Meanwhile, Ardonagh stated: “There has been a limited financial impact of COVID-19 on the group to date, with income impacts predominantly limited to the second quarter of 2020 and substantially offset by additional cost savings. The efficiency and stability of the group’s infrastructure has enabled home working for over 90% of our employee base.”
According to the enterprise, it also continues to review the operational aspects of the pandemic in line with the latest global developments and government guidance.
“Insurance broking is a resilient and defensive market, which has historically had limited impact from past economic or capital market downturns,” the firm added, “and Ardonagh’s highly diversified structure along with no material exposure to a single carrier, customer, or market sector means the group is well-placed in the current economic circumstances.”