Growing Hyperion mulls IPO

INSURANCE group Hyperion has moved nearer to a flotation after reporting a rise in revenue and earnings.

The broker and underwriter, which is backed by 3i, Britain’s oldest private equity firm, increased revenue by 21 per cent to £87m for the year to 30 September. The firm bought smaller insurance groups in Israel and the Far East during the year but recorded a rise in organic growth of 18 per cent, helping push Ebitda earnings up 45 per cent to £18m, after acquisition costs. Chief executive David Howden said the figures are “a reflection of the success of our strategy, our diversified business model and our ability to attract the very best people”.

The figures appear to take Hyperion closer to an initial public offering (IPO) which would raise more than £250m.

Executives have declined to say what proportion of the business they would float. Management are expected to retain a stake, however, given Hyperion’s repeated annual growth. Howden and his family trust currently own 15 per cent of the business.

Going public could provide many mid-level staff with a windfall, as employees currently own more than 50 per cent of the business. After 3i, which has a 27 per cent stake, the other significant investors include BP Marsh, the private equity investor, and two Spanish investment groups.

Hyperion, set up in 1994, has been looking at an IPO since 2009 but is now considering going to market next year.