The Ardonagh Group announces intention to acquire insurance operations of BGC Partners Inc
The Ardonagh Group has announced that it has agreed to acquire the insurance operations of BGC Partners, Inc. for a cash consideration of $500 million, with the intention of housing the entities within the Ardonagh Specialty segment, which is currently comprised of Price Forbes, Bishopsgate and Compass London Markets.
Under the terms of the agreement, Ardonagh will acquire 100% of Ed Broking Group and Besso Insurance (which were recently grouped together under the brand of Corant Global) comprising global wholesale and specialty (re)insurance broker Ed, Lloyd’s broker Besso, aviation specialist Piiq Risk Partners, German marine broker Junge, UK based MGA Globe Underwriting, Australian MGA Epsilon Underwriting and European MGA Cooper Gay. Approximately 900 people currently work across each of these insurance brands which contributed approximately $191 million in revenue during the twelve-month period ending March 31, 2021.
Ardonagh intends to fund the acquisition via a combination of equity and debt.
Commenting on the announcement, Ardonagh CEO, David Ross said: “We’re delighted to welcome each of BGC’s insurance brokerage businesses to our Ardonagh Specialty platform. This is a compelling shakeup of the global wholesale landscape, bringing two of the last remaining independent outfits of scale together to create the largest privately owned specialty broker in London, safeguarding choice for both clients and employees. A backdrop of unprecedented levels of consolidation has created a vacuum in the market, a space from which the BGC and Ardonagh businesses will emerge together as a preeminent force, restoring balance and cultivating a preferred destination for top-performing talent.”
CEO of Ardonagh Specialty, James Masterton, added: “This is a hugely complementary acquisition, aligning and accelerating our ambitions in the global specialty arena. The specialist broking and underwriting teams within the BGC operations are highly respected in their fields and their market leading progress in digitisation matches our own. We know that clients are looking for more innovation, for both product and capacity delivery, and our joined-up efforts in this space will ensure we remain competitive.”
Steve Hearn, CEO of BGC Insurance, said: “It is exciting to announce the sale of our insurance operations to The Ardonagh Group. Thanks to the efforts of our colleagues and under the parentage of BGC we have seen a tremendous period of growth. We plan for that upward trajectory to continue.”
Andrew Wallin, President of BGC Insurance, said: “Becoming part of The Ardonagh Group marks the start of a new and exciting chapter for us all. We are joining an organization that has scale, a track record of success in our industry and a shared vision to empower our broking and underwriting businesses.”