Revealed – Howden's full year results for 2023

Revealed – Howden’s full year results for 2023 | Insurance Business Australia

Insurance News

Revealed – Howden’s full year results for 2023

The company posted a double-digit increase in revenue

Insurance News

By
Kenneth Araullo

Howden Group Holdings has disclosed its financial outcomes for the fiscal year ending September 30, 2023.

The company witnessed a significant financial upturn, marking a 33% increase in revenue to £2,443 million, up from £1,841 million the previous year. Adjusted consolidated EBITDA also rose by 30% to £780 million, from £599 million, with an EBITDA margin of 31.9%. This growth was attributed to a blend of organic growth, recorded at 13%, and strategic acquisitions.

The year was also notable for Howden’s aggressive expansion through mergers and acquisitions, with 56 completed acquisitions including major ones like TigerRisk in the US, March RS in Spain, and Apex in New Zealand. This expansion strategy was supported by over £1 billion of equity from shareholders and $1.375 billion of incremental debt raised to fund these investments, all while maintaining a solid credit rating.

In a strategic move to streamline operations, Howden also announced a new management structure, appointing David Shalders as group COO. The company also adopted a single brand name and visual identity across its global broking operations to enhance brand recognition worldwide, including a rebranding of its UK branches and international offices.

Howden’s aggressive acquisition strategy extended across its insurance, reinsurance, and underwriting divisions, entering new markets and strengthening its specialty propositions. Noteworthy was the acquisition of TigerRisk, which significantly bolstered Howden’s reinsurance capabilities. The company also made strategic moves in the underwriting sector, including acquisitions that positioned DUAL as a leading bloodstock underwriter.

The company has also embraced employee ownership, with 1,000 new employee shareholders in 2023, bringing the total to 4,500, representing a 32% stake in the business. This model has been a cornerstone of Howden’s growth strategy, the company touted, reflecting in its conservative leverage level and stable credit ratings from Moody’s and S&P.

Sustainability efforts were also accelerated, with the appointment of Rowan Douglas CBE as CEO of Howden Climate Risk and Resilience, alongside initiatives like the launch of a Carbon Capture and Storage leakage facility and groundbreaking research with Cambridge University to support Small Island Developing States.

Looking ahead, Howden reiterated its focus on leveraging its capital model and employee ownership to navigate the macroeconomic and geopolitical challenges, reinforcing the critical role of insurance in addressing global issues.

“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,” CEO David Howden said.

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