Howden Group Holdings has announced the financial results for the fiscal year ending September 30, 2023, reporting organic growth rate of 13% and achieved a remarkable 33% surge in revenue, reaching £2.44 billion.
Although the organic growth of 13% represents a slight decrease from the previous year’s figure of 19%, the revenue has substantially increased from the £1.84 billion reported in 2022. Additionally, the adjusted consolidated EBITDA surged by 30%, rising from £599 million to £780 million.
During the fiscal year, Howden Group Holdings executed 56 strategic acquisitions, including five transactions exceeding £25 million EV in FY23. These acquisitions, which include TigerRisk in the US, March RS in Spain, Apex in New Zealand, Théorème in France, and Reich Insurance in the UK, have fortified Howden’s presence in key markets.
The company welcomed 1,000 new employees in 2023, indicating significant workforce expansion. Howden Group Holdings attributes its success partly to the supportive shareholders who injected over £1 billion of equity in FY23 to facilitate investment for growth. Moreover, the Group raised £1.1 billion of incremental debt to bolster its investment program in the same fiscal year.
Looking ahead, Howden acknowledges the persistent macroeconomic and geopolitical challenges faced by many clients in 2023. However, the company remains optimistic about the role of insurance in delivering substantial value and acting as a force for good amidst these challenges.
Speaking about the news, David Howden, Chief Executive Officer said: ” We’ve grown by consistently and relentlessly executing on a strategy to attract and empower the best talent – both individuals and through high-quality, aligned acquisitions – to deliver standout organic growth over the long term. If we look back just three years, when we had just broken through the £1bn revenue mark, we set out our intentions to be a leader in our home market, the UK, to be strong in reinsurance, to strengthen our European platform, and to accelerate our global specialty business.
He continued: “Three years later and we are the second largest insurance broker in the UK – the biggest in reach; we have moved to become one of the four top tier reinsurance brokers; and we’re the largest independent global player in Europe; and in global specialty we have hired hundreds of people across the world creating a team of 2,000. Our three-year revenue CAGR is 46%, our EBITDA CAGR 47% and our three year average organic growth number is 17%. I am incredibly proud of what we are building.”
He added: “We look ahead, from a position of scale and strength and united under our new brand, with the same consistent and relentless focus on empowering great people to deliver all the capabilities of the Group to our clients as we did right at the beginning.”
Author: Joanna England
