Howden announces 2024 Full Year results

Howden Group, the worldwide insurance coverage middleman group, has introduced its monetary outcomes for the yr ended 30 September 2024[1]. The report highlights:

Sturdy monetary efficiency: Adjusted Income grew by 23% to £3,010m (FY23: £2,442m) with natural income progress of 15% (FY23: 13%). Adjusted Consolidated EBITDA grew to £922.2m (FY23: £780m) with Adjusted Consolidated EBITDA Margin remaining broadly regular at 31% (FY23: 32%).
Progress throughout divisions:  Insurance coverage broking natural income grew 14%. Reinsurance natural income grew 30%. Within the Managing Common Agent (DUAL) natural progress was 6%.
New expertise contributed 30% of the natural income progress: with new groups driving progress throughout product strains, together with Treaty Reinsurance, Howden Re Packages, Sport & Leisure, Aviation, Restructuring and Decision and Building, the Group welcomed new expertise in Australia, Greece, the Center East, Singapore and Japan.
65 strategic acquisitions together with asset offers. Howden continued to construct main place in key markets, particularly in Europe the place we accomplished 28 offers. Highlights included the acquisition of VLC, a big dealer within the Netherlands, North Threat in Denmark, marking the entry to that nation, and AGEO in France. Howeden’s international footprint grew to 55 international locations.
Persevering with help from the buyers and debt capital markets: throughout 2024, Howden undertook various financings together with: a full refinancing and maturity extension in February; a debut Excessive Yield Bond; two Revolving Credit score Facility capability will increase; a brand new Delayed Draw Time period Mortgage facility to fund funding exercise and a number of downward repricings.
Howden welcomed 650 new worker shareholders in 2024, taking the entire quantity to five,300.

David Howden, Founder & CEO, Howden, commented: “Our thirtieth yr proved to be one to recollect. We broke the £3bn income barrier, we delivered double-digit natural progress for the fourth consecutive yr and a income CAGR of 40% over the identical interval. What’s our secret sauce? The standard of our exceptional folks. Our monitor document of progress is based on our means to draw and retain the perfect. Our expertise drives our efficiency, serving to us win new purchasers, and construct a long-term, sustainable enterprise with worker possession as our key differentiator and now with an Enterprise Worth approaching £20bn.”

“I’m extremely excited concerning the future. Wanting forward, we are going to proceed to capitalise on our stellar monitor document, retaining our give attention to sturdy natural progress, strategic M&A, funding in expertise and operational excellence. In so doing, we will develop even sooner, prepared to satisfy our formidable plans. We’ve turned 30, and we’re solely simply getting began.”

OPERATIONAL HIGHLIGHTS

David Shalders joined because the Group COO, each as a member of the Board and the senior administration group. His appointment will assist to embed operational excellence throughout the Group, enabling to scale up sooner.
Complete headcount: presently stands at 20,000.
Company sponsorship partnerships amplified Howden’s model recognition world wide and its dedication to the Sport & Leisure and Equine sectors, together with via: the British & Irish Lions rugby union group; in horse racing with the Victoria Racing Membership in Australia and The Bahrain Turf Membership; and, publish yr finish, the Emirates GBR group as a part of the SailGP crusing competitors.

DIVISIONAL HIGHLIGHTS AND ACTIVITY

Vital exercise throughout Howden’s working divisions as they executed in opposition to the technique to broaden the Group’s geographical footprint, strengthen and diversify specialty proposition via M&A and attracting new expertise.

Insurance coverage:

Natural progress of 14% pushed by progress throughout Retail, Specialty, and in Europe and Asia Pacific.
Howden entered new markets in Denmark with the acquisition of North Threat, which completes the Group’s footprint within the Nordic area, and Luxembourg with the addition of United Brokers. The acquisition of VLC within the Netherlands enabled us to construct important scale on this key European market, and the acquisition of AGEO elevated Howden’s footprint in France and its Worker Profit experience. We additionally entered Peru, a brand new market, with the acquisition of Contacto, and the Japanese market, with the launch of reinsurance and retail choices.
Howden launched a first-of-its-kind Crimson Sea cargo battle danger facility to guard ships and strengthen international provide chains, and Cyber Plus, a brand new cyber product that widens entry and simplifies the buying course of for SMEs.
Howden entered the captive administration market via the acquisition of ARM Holdings, strengthening the Group’s capabilities for the advantage of its multinational purchasers.
Senior hires included Jan Tinus Larsen, CEO of Howden Norway, Kentaro Tada as CEO, Howden Japan and Takuya Aibe to steer Howden Japan’s retail enterprise.

Reinsurance:

Natural progress of 30% pushed by sturdy efficiency of the Treaty enterprise throughout London and North America, Howden Re Packages and binder enterprise.
Elevated footprint throughout the Worldwide Reinsurance phase with international hires and workplaces in Japan, Hamburg and Zurich, together with the acquisition of specialist reinsurance dealer Haakon, changing into Howden Switzerland. Appointment of David Hearn as Chairman, World Shoppers Technique.
Sturdy business, operational, and functionality progress together with funding in cyber, the worldwide casualty reinsurance apply and international analytics.

Underwriting:

DUAL had natural progress of 6% pushed by sturdy New Initiative progress throughout Europe and Asia Pacific (primarily New Zealand) in addition to North America (Surety) and the UK retail enterprise.
DUAL Australia introduced it’s taking up the administration of a AUD50m PI Portfolio from Allianz, whereas DUAL Europe introduced the acquisition of Swiss Re’s Genoa-based Marine group, together with the EUR150m Marine portfolio that accompanies it.
Simon McGinn joined as CEO, DUAL UK, Marielena Rodrigues Forero as CEO, DUAL Latin America and David Harries as DUAL Group Head of Underwriting.

CAPITAL MANAGEMENT

Howden continues to be properly supported by the debt capital markets:

Sturdy monetary market situations in February 2024 in February allowed Howde to finish a $5bn refinancing which enabled to boost further debt capital, refinance current debt within the time period mortgage market and diversify funding sources by way of an inaugural excessive yield bond, attaining prolonged maturities and lowered the weighted common value of borrowing.
In August 2024, Howden accomplished a profitable repricing of the $1,074m Time period Mortgage B tranche maturing in 2030. The Group raised a brand new DDTL facility with a capability of $950m which it drew down on for the primary time in September 2024. Subsequent to yr finish, it elevated the capability on the RCF by £135m to £765m.
Howden additionally accomplished a profitable repricing publish yr finish in December 2024 the place it repriced its current $2,925m and €900m Time period Mortgage B tranches, lowering margins and upsized the USD tranche by an incremental $200m.

The Group’s scores had been reaffirmed at B2 Steady (Moody) and B Steady (S&P), sustaining probably the greatest Moody’s and S&P’s scores amongst all levered brokers.

CLIMATE RISK & RESILIENCE

Howden’s Local weather Threat and Resilience functionality continues to construct an knowledgeable, full spectrum operate, embedding our providing throughout specialties and areas. Highlights embrace:

Launching a first-of-its-kind Carbon Seize and Storage leakage facility to help the expansion of the worldwide carbon market.
A world first with the location of a Guarantee & Indemnity coverage for Carbon Credit.
Collaborating with Boston Consulting Group to collectively publish new analysis on the position of insurance coverage in mobilising the local weather transition[2].
Launching the Howden Resilience Laboratory[3], supported by Microsoft, to measure and consider local weather dangers.

The Howden Basis distributed over £1m to help local weather resilience initiatives within the World South, together with a pioneering monetary product defending girls staff in India in opposition to excessive warmth in collaboration with Local weather Resilience for All[4].
Howden convened the insurance coverage trade to launch Humanity Insured, a worldwide not-for-profit that makes insurance coverage accessible and inexpensive to the three.6 billion folks dwelling on the local weather disaster frontline[5].

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