Ardonagh losses rise to £44.5m in H1 2019

Ardonagh Group has revealed a rise in reported income to £337.4m in the first half of 2019, from £271.8m in H1 2018, according to its statement of group financial highlights.

However, in its investor report the business posted an increased loss of £44.5m in H1 2019, compared to £32.8m in the same time period last year, and its unaudited results, published in the same document, also showed a pre-tax loss of £48.5m (H1 2018: £38.2m).

The statement of group financial highlights also revealed an increase in reported adjusted Ebitda to £98.3m (H1 2018: £65.4m).

Meanwhile its operating costs for the first half of 2019 were £239.1m, up from the £206.4m reported in H1 2018. 

According to the statement its insurance broking segment has achieved income growth of 7.4%, of which 3% was organic growth due to an “improvement in client retention rats and the growth of emerging risk insurance such as cyber and terrorism”.

The company noted that its specialty business had seen the most organic growth in the second quarter of the year as a result of “transformational hires” in Price Forbes and Bishopsgate.

The business said in its investor report that income growth predominately was a result of its purchases of Swinton and Nevada 2, but added that this was offset by the sales of the commercial MGA business and the claims business.

Ardonagh chief executive officer David Ross commented: “The insurance broking transformation project coming to an end is a moment we have long looked forward to.

“The Group is now ideally placed at a time where our industry is consolidating around distribution and specialisms.”

He continued: “Comprised of a unique portfolio of leading platforms, Ardonagh has emerged as a true leader in the market with unparalleled breadth and scale.

“People across The Ardonagh Group deserve enormous recognition for what we have collectively achieved.”

Chairman John Tiner added: “With more than four million policies under management, and placing £3bn gross written premium, The Ardonagh Group enjoys extraordinary reach encompassing personal lines through to international wholesale.”

“These strong results reflect the Group’s ability to execute substantial integration projects while remaining agile and able to seize accretive growth opportunities.”