Arachas owner Ardonagh has secured investment from US-based private equity firm Stone Point Capital which values the insurance broker group at $14 billion.
Completion of the deal is expected to take place by mid-2025.
At that point Stone Point will become a significant shareholder in Ardonagh, along with Madison Dearborn Partners, HPS Investment Partners as well as co-investors including a wholly owned subsidiary of the Abu Dhabi Investment Authority and several other large global institutions.
Ardonagh said today's transaction caps a pivotal year for it, which began with a milestone refinancing in March, followed by the completion of the merger of its personal lines business into Markerstudy in June and the take-private of PSC Insurance Group in Australia which completed in October.
Founded in 2017 through the merger of several UK insurance businesses, Ardonagh has since transformed into a top 20 global broking group placing $18 billion of premiums and operating across the entire insurance value chain.
The group's global expansion began in 2020 with the acquisition of Arachas, which has grown into one of the leading insurance intermediaries in Ireland, with over 700 employees at 16 offices located throughout the country.
With Ardonagh's backing, Arachas recently acquired Waterford-based broker McDonald Dwyer Reddy & Byrne in December. Other deals include Gerry O’Mahony Insurances in Limerick, Tom Fogarty Insurance Brokers in Tipperary Town and Gilmartin Insurances in Leitrim.
With the added support of Stone Point, Ardonagh said it remains uniquely well placed to capture numerous growth opportunities in the global P&C insurance market through its platform of businesses.
David Ross, CEO of The Ardonagh Group, said that Stone Point’s investment in the group marks a new phase in its "extraordinary" journey over the past few years to become the $14 billion business it is today.
"Their support reflects a strong conviction in the strength of Ardonagh’s business and continued momentum, and redoubles our commitment to independence in a consolidating market," he said.
"We are thrilled to partner with the Ardonagh management team alongside MDP and HPS. We believe that Ardonagh is a leading platform in the global insurance distribution space, with an impressive track record of both organic and inorganic growth," Jim Carey, Co-CEO of Stone Point, said.
Conor Brennan, Executive Chairman at Ardonagh Global Partners, said the backing from Stone Point Capital provides an excellent platform for Arachas to grow and supports its ambition to strengthen its presence within the Irish market, ultimately delivering long-term value for our customers, brokers and agencies.
