Ardonagh Group says it is “well placed” for more growth after securing an investment from Stone Point Capital, a US private equity firm with more than $US55 billion ($86 billion) of assets under management.

UK-based Ardonagh is now a major privately owned intermediary group in Australia, having acquired PSC Insurance in October for $2.3 billion, Envest last year for $482 million, and Resilium in 2021. The Australian businesses all sit under the Envest umbrella.

“With the added support of Stone Point, Ardonagh remains well placed to capture numerous growth opportunities in the global property and casualty insurance market through its platform of businesses, which each have a strong regional in-market presence,” the group says.

Ardonagh has not revealed the size of the equity investment, saying only that the deal values the group at $US14 billion ($22 billion) and the US firm will become a “significant” shareholder.

The deal is expected to close in the middle of next year, subject to conditions including regulatory approval.

Ardonagh says the investment “caps a pivotal year”.

“The group’s global expansion began in 2020 with the acquisition of Arachas … Since then, Ardonagh has invested in leading insurance businesses in diverse geographies, most recently completing the $2.3 billion landmark [acquisition] of PSC in Australia.

“The deal saw PSC merge with Envest to create one of the largest platforms in the Asia-Pacific region and significantly bolstered Ardonagh’s position in the UK regional market and the London market.”

Group CEO David Ross says the Stone Point investment “reflects conviction in the strength of Ardonagh’s business and continued momentum, and redoubles our commitment to independence in a consolidating market”.

Envest CEO Greg Mullins welcomes the Stone Point investment into the wider group.

"This additional support for Ardonagh provides an excellent platform for growth and supports our ambition to strengthen our presence in the APAC region via Envest, now one of Australia’s largest privately owned insurance distribution platforms, placing $3.3 billion in gross written premium annually.” 

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