The broking group reported growth in both income and adjusted EBITDA
The Ardonagh Group has reported a 10.9% increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to £43.6m over the first three months of 2020 as income grew 1.6% to £160.1m.
The broker attributed this growth to “accretive investments in growth initiatives, including producer hires, bolt-on acquisitions, and the continued delivery of cost savings”.
The diversified nature of Ardonagh’s business has meant the the covid-19 outbreak and subsequent lockdown conditions have had a “limited” impact on the broker’s performance, and group chief executive David Ross said the challenges presented by the crisis meant brokers were needed now more than ever.
“Following a strong 2019 we have seen continued underlying growth across our diversified platforms,” he said. “The ingenuity and determination of our people means we will continue to serve our clients as they adapt to the changes to the way they live and do business.
“Businesses and individuals need insurance brokers on their side more than ever. Our people have risen to the challenge, helping to negotiate on claims, sourcing lower premiums for car and home customers, and delivering quality risk management advice and insurance programmes for businesses as they evolve.”
The broker’s biggest growth came from its specialty platform, which reported organic growth of 10.7%, while its advisory business grew by 6.1%.
Underlying organic growth in the broker’s retail business, excluding Swinton, was 0.9%, driven by improved retention, while adjusted EBITDA increased from £18.4 million to £20.1 million with “significant cost reductions” from the Swinton integration programme.
And Ross said that the broker’s strong performance had continued since the end of the first quarter of 2020.
“Customers have rewarded the solutions-focused flexibility of Ardonagh with increased retention, which is the ultimate endorsement of our work,” he said. “Trading since the Q1 close, during which the national lockdown has been in place throughout, has continued to be resilient, and costs have continued their downward trajectory.”