Consecutive 12 months of 19% natural progress and transformational acquisitions demonstrates supply of long-term technique
London, 30 January 2023 – Howden Group Holdings (“Howden Group” or the “Group”), a number one worldwide insurance coverage group, at the moment broadcasts its monetary outcomes for the 12 months ended 30 September 2022.
KEY HIGHLIGHTS
Continued distinctive monetary efficiency: pushed by document natural progress of 19% (FY 2021: 19%), a 60% enhance in income to £1,841m (FY 2021: £1,148m), and a 69% enhance in EBITDA to £565m (FY 2021: £335m).
pushed by document natural progress of 19% (FY 2021: 19%), a 60% enhance in income to £1,841m (FY 2021: £1,148m), and a 69% enhance in EBITDA to £565m (FY 2021: £335m). Completion of TigerRisk and the signed acquisition of March R.S. (each publish interval finish) takes income on a professional forma foundation to £2,036m and EBITDA of £648m.
Entrepreneurial expertise and consumer demand delivering unrivalled natural progress: 1,000 new workers (excluding from M&A) joined the Group in 2022. Together with M&A, headcount elevated by 4,100 with 400 senior practitioners becoming a member of over the past 24 months. This demonstrates a capability to draw prime expertise, with new initiatives contributing 20% of the Group’s natural progress.
1,000 new workers (excluding from M&A) joined the Group in 2022. Together with M&A, headcount elevated by 4,100 with 400 senior practitioners becoming a member of over the past 24 months. This demonstrates a capability to draw prime expertise, with new initiatives contributing 20% of the Group’s natural progress. £2.9bn of contemporary funding into the Group’s distinctive capital mannequin from long-term fairness and debt holders to assist the sustainable progress technique in FY 2022. An extra £750m of fairness was dedicated for the TigerRisk acquisition and worker shareholders of companies becoming a member of the Group have reinvested £240m of fairness for the reason that begin of FY 2022, together with an extra 1,000 new worker shareholders, taking the entire quantity to three,500.
to assist the sustainable progress technique in FY 2022. An extra £750m of fairness was dedicated for the TigerRisk acquisition and worker shareholders of companies becoming a member of the Group have reinvested £240m of fairness for the reason that begin of FY 2022, together with an extra 1,000 new worker shareholders, taking the entire quantity to three,500. 31 accomplished acquisitions in FY 2022 have reworked Howden’s place in key markets: notably Assiteca, forming the third largest dealer in Italy with 20 places of work. The completion of Aston Lark within the UK builds on the APlan acquisition and takes the entire funding within the UK to £2bn within the final 24 months. Howden is ranked by the Worker Possession Affiliation because the UK’s fifth largest employee-owned enterprise. Align within the US has redefined the attain and entry of Howden’s MGA enterprise, creating a global MGA group with over £2.2bn GWP. Moreover, publish 12 months finish, finishing TigerRisk within the US creates a model new tier one reinsurance dealer, and consolidates the Group’s place as a $30bn GWP international insurance coverage middleman.
notably Assiteca, forming the third largest dealer in Italy with 20 places of work. The completion of Aston Lark within the UK builds on the APlan acquisition and takes the entire funding within the UK to £2bn within the final 24 months. Howden is ranked by the Worker Possession Affiliation because the UK’s fifth largest employee-owned enterprise. Align within the US has redefined the attain and entry of Howden’s MGA enterprise, creating a global MGA group with over £2.2bn GWP. Moreover, publish 12 months finish, finishing TigerRisk within the US creates a model new tier one reinsurance dealer, and consolidates the Group’s place as a $30bn GWP international insurance coverage middleman. New capital options and product innovation serving to construct resilience: launch of Howden CAP in response to market-wide demand for brand spanking new capital and insurance coverage options. Howden continued to develop and launch business main local weather danger options, together with the primary ever carbon offset insurance coverage product.
launch of Howden CAP in response to market-wide demand for brand spanking new capital and insurance coverage options. Howden continued to develop and launch business main local weather danger options, together with the primary ever carbon offset insurance coverage product. Howden Group Basis, an impartial grant-making charity and shareholder within the Group distributed in extra of £1.2m to its international charity companions over the 12 months.
David Howden, CEO, Howden Group commented:
“Howden Group delivered distinctive monetary efficiency in 2022, led by 19% natural progress, an accomplishment that’s much more outstanding given it follows the stellar 19% progress in 2021. On a professional forma foundation, now we have nearly doubled our income in simply 12 months. Howden’s differentiated capital mannequin, mixing worker possession with long-term institutional shareholders continues to offer the enterprise with alternative, energy and sustainability on the subject of deploying capital. We’ve welcomed 1,000 new worker shareholdersto the Group this 12 months, bringing the entire quantity within the Group to three,500, alongside the Howden Group Basis, which is a major shareholder within the enterprise.
“The mixture of Howden and TigerRisk represents the ultimate strategic pillar of our Group structure, offering a contemporary dynamic for purchasers and a full spectrum supply throughout insurance coverage, specialty, reinsurance, underwriting, capital markets and advisory. Howden Tiger creates a brand new power that has lengthy been wanted within the reinsurance market, a frontrunner in lots of excessive progress specialist areas comparable to MGAs and Facultative, and critically a large magnet for expertise. During the last 18 months, now we have executed relentlessly on our technique of constructing a enterprise for, and over, the long run. We’ve executed this by becoming a member of with different entrepreneurial firms who wish to proceed to develop and by attracting and retaining one of the best expertise, all of whom share in our imaginative and prescient and keenness.
“We’ve additionally established unrivalled attain and experience in our house broking market of the UK and Eire, and are a rising power in Europe. Nearly half of our 31 acquisitions over the previous twelve months have been in continental Europe, and most just lately that of March R.S. (publish interval finish), reflecting our ambition to create a preeminent broking enterprise of scale in Europe, a area that has lengthy been our heartland. Our place has been cemented globally as the one participant with the scale, scale and experience to rival the large three.
“As local weather, macroeconomic and geopolitical uncertainty continues, the insurance coverage sector has an amazing alternative to reveal its worth to society. At instances like this it’s vital that we problem ourselves to seek out new methods of serving to our purchasers confront a dynamic and interrelated danger setting, comparable to our product insuring the authenticity of carbon credit and our work on utilizing insurance coverage to fund catastrophe aid initiatives. Our deal with insurance coverage as a power for good, innovation and our entrepreneurial mindset are among the many key causes that increasingly more purchasers are turning to Howden.
FINANCIAL HIGHLIGHTS
Group income of £1,841m (2021 £1,148m), a rise of 60%
Adjusted consolidated EBITDA up 69% to £565m (2021: £335m)
19% natural progress – pushed by new consumer wins and contemporary expertise becoming a member of the Group
EBITDA margin of 31%
31 strategic acquisitions accomplished in 2022, together with Align, Aston Lark and Assiteca
Income professional forma for the finished acquisition of TigerRisk and the signed acquisition of March R.S. is £2,036m, and EBITDA £648m
GROUP HIGHLIGHTS
Howden Broking Group
Profitable integration of Aston Lark, establishing Howden’s UK and Eire platform because the main UK insurance coverage dealer representing UK purchasers with unrivalled geographical and product attain, with 5,000 workers throughout 160 places of work
Acquisition of TigerRisk within the US (accomplished ninth January 2023) reworking Howden’s place in reinsurance as a prime tier participant
Cemented a number one presence throughout Europe. Howden is now the third largest dealer in Italy, following the acquisition of Assiteca, and a number one dealer in Spain with the acquisition of March R.S. (publish interval finish)
Acquisitions accomplished in Switzerland, Belgium, Norway, Italy, France, Spain, Estonia, Hong Kong, Bermuda, Australia and the UK
Formation of Howden CAP underlining Howden’s dedication to leveraging insurance coverage as a capital administration device
100 Treaty specialists joined the reinsurance division in 2022, alongside an MGA International Program crew within the US and the launch of Howden Tiger SabRE
Howden welcomed 3,600 new workers over the course of the 12 months
DUAL
Doubling of DUAL Group’s GWP to £2.2bn pushed by the combination of Align and natural progress of 26%
Over 1,000 workers working in 19 international locations, greater than 70 capability suppliers, and over 11,000 distribution companions
DUAL welcomed 400 new workers over the course of the 12 months
DUAL is one among Lloyd’s largest coverholders and one of many largest worldwide MGAs, providing over 70 merchandise from 19 international locations internationally
New initiatives embody the launch of US Transactional Threat, UK Forestry and US Product Recall groups
CHANGES TO THE BOARD AND GEC
James Parry-Crooke, CDPQ was appointed to the board, changing Domitille de Vienne and Rob Bredahl, CEO, Howden Tiger has been appointed to the Group Government Committee following completion of the TigerRisk acquisition (ninth January 2023 and publish interval finish).
CAPITAL MANAGEMENT
Efficiently raised £2.9bn of contemporary capital over the course of 2022 from long run fairness and debt holders, underlining current buyers’ dedication to Howden’s sustainable progress technique
1,000 new workers joined as further shareholders in 2022 giving a complete of three,500 with a complete stake of 35% within the enterprise. Howden now ranks because the fifth largest worker owned enterprise within the UK as of June 2022
Worker shareholders of companies becoming a member of the Group have reinvested £240m of fairness for the reason that begin of FY 2022
Maintained a conservative leverage stage of 5.0x money pay leverage at fixed FX charges
Group’s rankings have been reaffirmed at B2 Secure (Moody’s) and B Secure (S&P), with Howden Group sustaining top-of-the-line Moody’s and S&P rankings amongst all levered brokers
SUSTAINABILITY
Continued funding within the Local weather, Threat and Resilience crew to assist the transition to a low carbon economic system and to mirror a fervent perception that insurance coverage is a power for good. Modern new options to assist purchasers on this manner embody: The event and launch of the primary ever carbon offset insurance coverage product to carry credibility and confidence to the voluntary carbon market Renewal of the world’s first ever disaster bond for volcanic eruptions Growth and launch of a brand new product in partnership with Skyline Companions and Munich Re that protects the Jamaican Co-operative Credit score Union League (JCCUL) in opposition to non-repayment of microloans from farmers within the occasion of maximum climate
Howden stays a dedicated and energetic accomplice of the Sustainable Markets Initiative and the Resilient Cities Community
Howden Group Basis, our impartial grant-making charity and shareholder within the Group, distributed in extra of £1.2m to its international charity companions over the 12 months
OUTLOOK
