Hyperion Group 2018 results

Hyperion Insurance Group Limited (“Hyperion”) financial results for the year ended 30 September 2018.
 

Group financial highlights

On a bank reported basis*:

• Revenue of £620m, an increase of 16%
• Adjusted consolidated EBITDA of £181m, an increase of 19%
• EBITDA margin of 29% (2017, 28%)
• Cash and deferred consideration of approximately £145m investing in the following companies: ACP, Synkronos Italia, International Planning Group, Apollo Partners LLP, and Grupo Ordás

 * Includes 12 months’ pro forma effect of acquisitions at actual FX

Business update

Robust full-year organic growth driven by strong performance from all three trading divisions:

• DUAL, the world’s largest international MGA, saw impressive growth following restructuring and solid performance in underwriting capacity
• Howden, the world’s largest international independent retail broker, saw solid growth driven by acquisitions and organic growth
• RKH, the largest producer of direct premium to Lloyd’s, saw significant growth in a number of areas, in particular in its reinsurance business

 ** On bank reported basis at constant rates of exchange and constant perimeter of the Group

Operational highlights

• The equity investment by Caisse de dépôt et placement du Québec (CDPQ). CDPQ joined as a long-term investor alongside General Atlantic and our employee shareholders
• Hyperion announced the launch of Hyperion X to develop key areas of data, analytics and digital platform delivery
• Hyperion partnered with WNS (Holdings) Limited to form the Hyperion Shared Service Centre to create a scalable and flexible operating model
• Started consolidation of the four London offices into the Group’s new international headquarters at One Creechurch Place: a world-class building located in the heart of the London insurance market
• Howden One, a global specialist insurance broking network, now has more than 40 independent broking partners working to a single set of service standards in over 90 territories with a total of over 10,000 insurance professionals
• Launched the Group’s first global charitable initiative, Million for a Million, aiming to raise US$1 million for four charity partners: Cancer Research UK, Black Dog Institute, Plastic Oceans and Intered

The Group has restructured and expanded its senior management team to support the next stage of its development:

• Barnaby Rugge-Price was appointed CEO of Hyperion X and Chairman of RKH
• Andy Bragoli was appointed CEO of RKH and joined the Group Executive Committee (“GEC”)
• Paul Redgate was appointed as Deputy Chairman of RKH and to the GEC leading the Hyperion Industry Specialisms initiative
• José Manuel González was appointed CEO of Howden
• Richard Clapham was appointed CEO of DUAL
• David Ibeson was appointed Chairman of DUAL
• Darren Doherty was appointed as Vice Chairman and Commercial Director of DUAL and Chairman of DUAL, USA

Strategic expansion

The Group made a number of investments to strengthen its product and distribution capabilities both geographically and in terms of specialist market positions.

• In April 2018, the Group expanded its retail broking operations in Turkey with its investment in insurance broker ACP to form Howden ACP
• In May 2018, DUAL Italia expanded its operations with its acquisition of Synkronos Italia
• In June 2018: 
  • The Group expanded its retail broking operations in Asia with its investment in International Planning Group (“IPG”) to form IPG Howden
  • The Group acquired a 9.9% share in Apollo Partners LLP
• In July 2018 Howden expanded its Iberoamerican operations with its investment in top-five Mexican broker, Grupo Ordás, in Mexico City, to form Grupo Ordás Howden

In addition to the acquisitions that took place during the 2018 financial year, in January 2019 Howden exchanged contracts to acquire Punter Southall Health and Protection Holdings to strengthen its global Employee Benefits offering.

David Howden, CEO, Hyperion, commented:

“As we enter our 25th year, we are in a very strong position to seize the opportunities that are being created both by consolidation of the market, the pressures on underwriting performance and the opportunities for transformation. Our employee-ownership model and our entrepreneurial approach means we have a flat and empowered structure which keeps a constant focus on our employees. This, in turn, promotes innovation, integrity and the agility to develop our specialist products and services and get them to our clients fast.”

Download the PDF