Private equity firms have been on a buying spree in recent years, and the latest company to benefit from their investments is the owner of Arachas, an insurance brokerage based in Ireland. With the help of private equity funding, Arachas has seen a significant increase in profitability, making it one of the most successful firms in the industry. In this article, we’ll explore the role of private equity in driving growth at Arachas and how this trend is shaping the insurance sector as a whole.
Ardonagh, the owner of the largest insurance broker in Ireland, has seen its earnings increase almost five times in the last five years. This is due to a series of acquisitions and expansion into new markets. The private equity-backed company recently added six firms, including Glennon Insurances, to its platform, and earned a profit of $476m in 2022. It has received $1bn in new funding from its owners, Madison Dearborn and HPS Investment Partners, and the Abu Dhabi sovereign wealth fund. Ardonagh completed 39 deals in 2022 and has 70 more transactions in the pipeline, aiming to generate $100m in new earnings. The company emerged out of the rebranding of the UK insurance broker Towergate and is now the largest independent in the UK market and in the top 20 globally. Ardonagh is now looking to leverage its buying power to grow its non-UK businesses with acquisitions. Its Dublin-headquartered European division, consisting of Arachas CEO Conor Brennan, was launched in July 2021 to develop its business in the European market.
In conclusion, the private equity buying spree that has boosted profits at Arachas owner signifies a changing tide in the financial landscape. With increased investment comes increased ability to expand and improve business operations, ultimately leading to overall growth and success. As Arachas and other companies continue to attract private equity buyers, we can expect to see further advancements and innovations in the industry, making it an exciting time for both businesses and investors alike. It is important to keep a close eye on these developments and continue to learn about the evolving nature of the financial world.