Towergate chief Ross hints at Ardonagh Group IPO - report

David Ross, chief executive of Towergate and the recently created Ardonagh Group, has suggested that the holding company “could be big enough to IPO” next year.

The Telegraph reported that the group was not ruling out a potential sale or listing of the business.

The group was created in May when US equity owners HPS Investment Partners and Madison Dearborn Partners brought Towergate, Autonet, Chase Templeton, Direct Group and Price Forbes together.

Last month the group, previously known as KIRS Group, was renamed to Ardonagh Group. At that time it stated that the group was expected to generate £2.8bn of gross written premium and an annual income of £500m.

IPO
Ross told the newspaper that: “Decisions will be based on being in control of our own destiny in 10 years.

“We could IPO, could stay with private equity, could go to a trade buyer. We’ll enjoy being private for a while, but could be big enough to IPO. In 12 months, when this is a monster, the board will need to talk.”

However, a spokesperson from the group told Insurance Age that an IPO was just one of several options for the business as it continues to grow, adding: “We are not committed to any exit strategy at this time.”

Options
They continued: “David alludes to a number of options. David [also] talks about a trade sale and further private equity backing.

“The board are obliged to consider options for the business as it grows. Of course they will look at what might be next and one of the things that might be next is an IPO.

“But many, many different things could happen. We haven’t gone to our people today and told them that we will IPO the business.”

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