The Ardonagh Group has published its report to investors for the three months ended March 31, 2022.
According to the 55-page document seen by Insurance Business, here are Ardonagh’s key performance indicators in the first quarter:
|
Metric |
Q1 2022 result |
Q1 2021 result |
|
Total income |
£287.5 million |
£199.7 million |
|
EBITDA |
£66 million |
£46.1 million |
|
Adjusted EBITDA |
£85.5 million |
£66.3 million |
|
Operating profit |
£29.4 million |
£17.1 million |
|
Loss for the period |
£37.4 million |
£22.8 million |
Ardonagh reported: “Loss for the period increased by £14.6 million to £37.4 million. The main contributors were the improvement in the operating result of £12.3 million and increase in the tax credit of £6.1 million offset by an increase in financing costs of £34.3 million.”
EBITDA, meanwhile, represents the group’s earnings after adding back finance costs, tax, depreciation, amortisation, impairment of non-financial assets, profit/loss on disposal of non-financial assets – except for right-of-use assets in the year of transition to IFRS 16 – and foreign exchange movements.
Adjusted EBITDA excludes spend considered by management to be material and specific to Ardonagh’s significant transformation initiatives. These include acquisition and financing costs, regulatory costs, transformational hires, business transformation, and legacy costs, among others.
“The momentum behind the group continued in the first three months of the year with strong execution on organic growth, operational efficiency, and group-wide opportunities together with fast growth in specialty and international,” noted group chief executive David Ross, whose camp saw 8.2% organic income growth in the period.
“Our pipeline of potential acquisitions and producer hires is robust as businesses and people seek environments where entrepreneurialism and a client-focussed culture meet scale.”
The company’s four operating platforms are Ardonagh Advisory, which includes Towergate Insurance Brokers; Ardonagh Retail, under which Atlanta Group operates; Ardonagh Specialty, which spans the likes of Ed Broking and Bishopsgate; and Ardonagh International, the unit that consists of primarily non-UK broking enterprises and related investments.
During Q1, said Ardonagh, the group invested £15 million in growth drivers such as new hires and IT system improvements.
