MDS owner Ardonagh secures investment from Stone Point Capital valuing the Group at $14 billion

• Investment funds managed by Stone Point Capital to become a significant shareholder in Ardonagh alongside existing shareholders MDP and HPS

• Stone Point’s investment values the Group at $14 billion

• Landmark transaction provides an excellent platform for growth for MDS in key markets such as Latin America and Iberia

The MDS Group ("MDS”), part of The Ardonagh Group ("Ardonagh” or the "Group”) one of the world’s largest independent insurance distribution platforms, today announces an equity investment into The Ardonagh Group from funds managed by US-based private equity firm Stone Point Capital LLP ("Stone Point”), a leading alternative investment management firm focused on the global financial services and related industries. The investment values Ardonagh at $14 billion.

Completion is expected to take place in mid-2025, at which point Stone Point will become a significant shareholder in Ardonagh, alongside Madison Dearborn Partners ("MDP”), HPS Investment Partners ("HPS”), as well as co-investors including a wholly owned subsidiary of the Abu Dhabi Investment Authority ("ADIA”) and several other large global institutions.

The transaction caps a pivotal year for the Group, which began a milestone refinancing in March, followed by the completion of the merger of its personal lines business into Markerstudy1 in June and the take-private of PSC Insurance Group ("PSC”) in Australia which completed in October. 

Founded in 2017 through the merger of several UK insurance businesses to create a uniquely diversified group providing wholesale, retail and specialist insurance solutions, 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. Since then, Ardonagh has invested in leading insurance businesses in diverse geographies.

Ardonagh acquired MDS Group in December 2022, extending the Group’s reach into new regions including Portugal, where it is the undisputed market leader, Brazil, where it is the largest independent player in the market, and Africa (Angola, where it is the market leader, and Mozambique).

In 2023, MDS acquired Chilean-based RSG, Renaissance in Cyprus, and most recently, MDS announced its first move into Spain with the acquisition of Cobian Insurance Brokers in Madrid.

Founded 40 years ago, MDS annually manages more than 2.7 billion euros in insurance premiums, and employees more than 2000 employees in 54 offices in 11 countries. 

As of today, the Group’s growing presence outside of the UK represents over 50% of the Group’s global property and casualty (P&C) revenues.

With the added support of Stone Point, Ardonagh remains uniquely well placed to capture numerous growth opportunities in the global P&C insurance market through its platform of businesses which each have a strong regional in-market presence.

David Ross, CEO of The Ardonagh Group, said: "Stone Point’s investment in the Group marks a new phase in our extraordinary journey over the past few years to become the $14 billion business we are 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.  
"We look ahead to a future backed by partners whose deep understanding of our industry, expertise and networks will be invaluable as we capitalise on Ardonagh’s unique position in the global insurance market to deliver value to our clients, shareholders and people.”

Jim Carey, Co-CEO of Stone Point, commented: "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.”  

José Manuel da Fonseca, CEO of MDS Group, commented:

"The backing from Stone Point Capital provides an excellent platform for growth and supports our ambition to strengthen our presence within the Latin American and Iberian markets, ultimately delivering long-term value for our customers, brokers and agencies across these key regions.” 

Vahe Dombalagian, Managing Partner of Madison Dearborn Partners, added: "We welcome Stone Point to what has been a highly successful investment partnership and are confident that the Stone Point team will be tremendously additive to Ardonagh’s continued growth and success.”

Scot French, a Governing Partner of HPS, said: "We are excited to continue our longstanding partnership with Ardonagh and are thrilled that Stone Point, with a world class reputation in financial services, is investing in Ardonagh. We view their participation as a testament to Ardonagh’s success and a benefit to the company in terms of the operational and strategic expertise they bring to bear.”

The transaction is subject to customary closing conditions including regulatory approvals. 

Fenchurch Advisory Partners and Goldman Sachs Investment Banking are acting as financial advisors to Ardonagh.

1A party related to Ardonagh has retained a minority stake in the combined Markerstudy group.