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Ardonagh reports 23.2% rise in Q1 income

Ardonagh reports 23.2% rise in Q1 income | Insurance Business

Ardonagh reports 23.2% rise in Q1 income

The Ardonagh Group, which recently was valued at £1.9 billion, has reported a 23.2% rise in income for the first quarter of 2019.

Announcing its financial results for the three months ended March 31, Ardonagh said its group income grew from £127.8 million in the same period in 2018 to £157.6 million this year. The increase was attributed to targeted acquisitions as well as growth in premium and policies under management.

As for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation), the figure went up 46.2% to £39.3 million, thanks to acquisitions and the delivery of cost savings.

Read more: Ardonagh completes Swinton acquisition

“Insurance broking, the group’s largest segment, had a particularly strong start to the year with organic growth of 2.9% driven by circa 90% retention and +15.2% new business growth,” noted Ardonagh. “The rollout of Acturis in advisory branches completed in Q1 with 28 branches now running renewals and new business 100% on the new system.

“In our retail segment, the integration of Swinton is ahead of plan – administrative and IT costs per policy have been reduced by 21% and customer renewal rates improved compared to Q1 2018.”

Read more: Investment funds up shareholding in Ardonagh

For chief executive David Ross, the numbers represent the benefits the group continues to enjoy from its investments in building what he described as a multi-channel diversified platform.

“As we approach the mid-way point of 2019 we are tremendously excited about the opportunities that lie ahead with the full support of our shareholders, who this week reaffirmed their commitment with a £92 million investment to increase their holdings in the group,” commented Ross.