Ardonagh buys Dutch insurance broker for more than €100m

Insurance brokerage group Ardonagh has agreed to buy Netherlands-based commercial insurance intermediary Klap Verzekeringsmakelaar for an estimated figure of more than €100 million.

The deal was carried out by Ardonagh’s European arm, which is led by Dubliner Conor Brennan, who is also chief executive of the group’s Irish business, Arachas.

This deal follows on from Ardonagh entering the Dutch market last year through the purchase of Léons Group for a figure believed to be around €50 million. Representatives for Ardonagh declined to comment on the value of both deals.

“This is a hugely complementary acquisition, aligning neatly with our group’s footprint both internationally and in the European market,” said Mr Brennan. “Alongside the vast expertise of Léons, Klap further diversifies our portfolio and our customer base in the Netherlands, creating a strong platform to accelerate our growth ambitions in the region.

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Founded in 1854 and based in Amsterdam, Klap advises small and medium-sized companies on employee benefits, insurance and pensions, distributing over €100 million of gross written premiums annually.

Arachas, one of the most active dealmakers in the industry in the Republic in recent years, was acquired in 2020 by Ardonagh, which is backed by US private equity firms Madison Dearborn and HPS Partners, for €250 million. Ardonagh is led by Irishman David Ross.

[ Ardonagh Group completes acquisition of Australian insurer Envest for €312m ]

Ardonagh’s European arm bought Portugal-based MDS Group in late 2021 and is also currently focusing on developing a platform from scratch in the highly-fragmented brokerage market in Italy. The company is also known to be scouting for deals in other European markets.

The Irish market has seen a flurry of broker deals in the past six years as it followed waves of consolidation in Britain and North America. The ultimate backers of most of the purchasing vehicles are private equity firms, attracted to a sector that is fee-based and delivers steady revenues through the economic cycle. This allows buyers to service the debt needed to finance further deals.

Consolidation is less advanced in many European markets.