The insurance group has not ruled out an IPO, but it is not on immediate agenda

The takeover of Lloyd’s broker Windsor helped Hyperion to grow its UK turnover by 108%, group chief executive David Howden has said.

Howden today announced that Hyperion’s group turnover from continuing operations including acquisitions grew by 51% to £166.6m in the year to 30 September 2013. Without acquisitions, it posted organic growth of 13%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) from ongoing business were up 74% to £35.9m.

Its broking arm, Howden Broking Group, grew revenue by 67% to £125.7m (2013) and EBITDA by 21%.  

Howden completed the legal integration of solicitors’ professional indemnity specialist Windsor in October 2012.

Howden said: “Howden and Windsor have worked together to come with a great deal for our clients.

“We had a very good renewal season. Windsor has a lot of strengths in that area which was one of the attractions of putting Howden and Windsor together.

“Howden was good in financial lines PI while Windsor was good in professional lines. It has been very successful and has been one of our biggest synergy wins.”

IPO

The company has not ruled out an IPO, but David Howden said it is not currently on the agenda.

He explained with the previous shareholders 3i, an exit strategy was required, which might have prompted the company to look to an IPO.

But since receiving its £250m refinancing from General Atlantic it is not being driven by a ‘funding’ issue to become publicly listed.

“We don’t have any set time frame. It is on the agenda - but it is not on the agenda for the next six months,” Howden added.

DUAL

The broking group’s MGA, DUAL, recorded £254m gross written premium and £41m revenue for the year.

Just after year end Hyperion completed its second largest acquisition of US-based independent underwriting agency PGI Commercial Inc.

Specialising in program management across a number of sectors in the United States, PGI writes a little under $200m in premiums.

For DUAL the acquisition means that the combined business controls upwards of £400m in premium, and has 24 offices in 12 countries.

Howden said: “The acquisition of PGI Commercial in the United States will be as transformational for DUAL as the acquisition of Windsor was for Howden Broking Group, bringing important product and geographic diversification, new experts, and greater scale to the Group.”

Distribution and growth

The group plans to continue to build its distribution platforms as it seeks to invest more in the international market and will focus on its PGI/Dual integration as well as its UK retail broking capabilities.

“We enter 2014 in a strong position to continue to build our distribution platforms to the benefit of our clients and to provide a unique entrepreneurial environment which will allow us to remain a magnet for talent,” Howden added.

“We are very much a UK business that looks to the international market place for its growth as well as the UK market place.”

Topics