Ryan Specialty Holdings, Inc. (RYAN) Bundle
A Brief History of Ryan Specialty Holdings, Inc.
Ryan Specialty Holdings, Inc. (RYAN) has experienced significant growth and transformation since its inception. The company specializes in providing wholesale insurance brokerage services and managing underwriting operations in niche markets. Established in 2010 by Ryan Specialty Group, LLC, it has steadily expanded its footprint through strategic acquisitions and organic growth.
Recent Financial Performance
As of September 30, 2024, Ryan Specialty reported total revenue of $1.85 billion for the nine months ended, reflecting a robust growth of 19.8% compared to $1.54 billion during the same period in 2023. The net income for the same period increased to $187.4 million, up from $136.0 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,852.2 million | $1,544.7 million | 19.8% |
| Net Income | $187.4 million | $136.0 million | 37.9% |
| Adjusted EBITDAC | $595.2 million | $466.2 million | 27.6% |
| Net Income Margin | 10.1% | 8.8% | 14.8% |
Debt and Financing Activities
As of September 30, 2024, Ryan Specialty's total debt stood at $2.68 billion, with long-term debt amounting to $2.65 billion. The company has actively managed its debt profile, including a recent increase in the revolving credit facility from $600 million to $1.4 billion. The applicable interest rate on their Term Loan was reduced from Adjusted Term SOFR + 3.00% to Adjusted Term SOFR + 2.25% as part of ongoing refinements to their credit agreements.
| Debt Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Debt | $2,679.9 million | $1,979.2 million |
| Long-term Debt | $2,646.6 million | $1,943.8 million |
| Revolving Credit Facility | $1,400.0 million | $600.0 million |
Acquisitions and Growth Strategy
Ryan Specialty has adopted an aggressive growth strategy through acquisitions. In 2023, the company completed several significant acquisitions, contributing to an increase in intangible assets, which rose to $1.35 billion as of September 30, 2024, compared to $610 million in 2023. This strategy aligns with their objective of expanding service offerings and accessing new markets.
Employee Growth
As of September 30, 2024, Ryan Specialty's workforce has expanded to 4,917 employees, an increase of 623 employees compared to the previous year. This growth reflects the company's commitment to scaling its operations to meet increasing demand for specialized insurance solutions.
| Employee Metrics | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Total Employees | 4,917 | 4,294 |
| Employee Growth | 623 | N/A |
Outlook and Market Position
Looking ahead, Ryan Specialty is positioned to capitalize on ongoing trends in the insurance market, particularly in the excess and surplus lines sector. The company's focus on innovation and technology integration aims to enhance operational efficiency and client service delivery, setting the stage for sustained growth in the coming years.
A Who Owns Ryan Specialty Holdings, Inc. (RYAN)
Ownership Structure
As of September 30, 2024, Ryan Specialty Holdings, Inc. (RYAN) has the following ownership structure:
- Class A Common Stock: 125,096,524 shares
- Class B Common Stock: 136,724,772 shares
- Total Shares Outstanding: 261,821,296 shares
Major Shareholders
The major shareholders of Ryan Specialty Holdings, Inc. include both institutional investors and insiders, with the following notable ownership stakes:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| Patrick G. Ryan | Insider | Approximately 47.8% |
| Various Institutional Investors | Institutional | Approximately 52.2% |
Non-controlling Interests
As of September 30, 2024, Ryan Specialty Holdings, Inc. owned 47.8% of the economic interests in the underlying LLC, while the non-controlling interest holders owned the remaining 52.2%.
Recent Stock Performance
In the third quarter of 2024, Ryan Specialty reported a net income of $28.6 million, with earnings attributed to non-controlling interests amounting to $11.1 million.
Financial Overview
The financial performance as of September 30, 2024, is summarized below:
| Financial Metric | Value |
|---|---|
| Total Assets | $8,478.5 million |
| Total Liabilities | $7,377.0 million |
| Total Stockholders’ Equity | $1,101.5 million |
| Cash and Cash Equivalents | $235.2 million |
Dividends and Distributions
As of September 30, 2024, Ryan Specialty Holdings declared a total of $66.5 million in dividends, which included $27.1 million related to a special dividend and $39.4 million for regular quarterly dividends.
Stockholder Equity Dynamics
The equity structure has undergone several adjustments, with various equity-based compensation and distributions affecting the overall stockholder equity. The balance as of September 30, 2024, reflects the following:
| Equity Component | Amount |
|---|---|
| Class A Common Stock | $125 million |
| Class B Common Stock | $137 million |
| Additional Paid-in Capital | $500.5 million |
| Retained Earnings | $124.9 million |
| Accumulated Other Comprehensive Income | $7.1 million |
| Total Stockholders’ Equity | $1,101.5 million |
Conclusion
Ryan Specialty Holdings, Inc. continues to maintain a complex ownership structure that integrates both institutional and insider holdings, with significant non-controlling interests reflecting its partnership with various stakeholders in the LLC structure. The financial health of the company is evidenced through its robust asset base and equity dynamics, along with a commitment to return value to shareholders via dividends and stockholder equity adjustments.
Ryan Specialty Holdings, Inc. (RYAN) Mission Statement
Mission Statement Overview
Ryan Specialty Holdings, Inc. focuses on providing innovative solutions in the specialty insurance and reinsurance markets. The company aims to deliver exceptional service and expertise to its clients while maintaining a commitment to integrity and transparency in all business dealings.
Financial Performance Metrics
As of September 30, 2024, Ryan Specialty Holdings reported the following key financial metrics:
| Metric | Value (Q3 2024) | Value (Q3 2023) | Change (%) |
|---|---|---|---|
| Total Revenue | $604.7 million | $501.9 million | 20.5% |
| Net Income | $28.6 million | $15.7 million | 82.5% |
| Adjusted Diluted EPS | $0.41 | $0.32 | 28.1% |
| Cash and Cash Equivalents | $235.2 million | $754.4 million | -68.8% |
| Total Assets | $8.48 billion | $7.25 billion | 17.1% |
| Total Liabilities | $7.38 billion | $6.27 billion | 17.8% |
Revenue Breakdown by Segment
The breakdown of total revenue by specialty segment for the three months ended September 30, 2024, is as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Wholesale Brokerage | $346.7 million | $308.9 million | 12.2% |
| Binding Authorities | $76.5 million | $69.2 million | 10.5% |
| Underwriting Management | $164.9 million | $109.2 million | 51.0% |
Key Acquisitions
In 2024, Ryan Specialty made several strategic acquisitions that contributed to its growth:
- AccuRisk Holdings, LLC - Acquired for $98.3 million
- Castel - Acquisition completed in 2024
- US Assure - Acquisition completed in 2024
- Greenhill - Acquisition completed in 2024
- Ethos P&C - Acquisition completed in 2024
Recent Developments
Ryan Specialty has engaged in significant restructuring efforts under the ACCELERATE 2025 program, initiated in February 2023, aiming to enhance operational efficiency and drive innovation.
Stock Performance
The stock performance of Ryan Specialty Holdings (RYAN) as of September 30, 2024:
| Metric | Value |
|---|---|
| Stock Price (as of Sept 30, 2024) | $25.00 |
| Market Capitalization | $3.12 billion |
| 52-Week Range | $18.00 - $30.00 |
How Ryan Specialty Holdings, Inc. (RYAN) Works
Company Overview
Ryan Specialty Holdings, Inc. operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers. The company's offerings include distribution, underwriting, product development, administration, and risk management, functioning as a wholesale broker and a managing underwriter or program administrator.
Financial Performance
As of September 30, 2024, Ryan Specialty reported a total revenue of $604.7 million for the third quarter, marking a 20.5% increase from $501.9 million in the same period of the previous year. For the nine months ended September 30, 2024, total revenue reached $1,852.2 million, an increase of 19.9% from $1,544.7 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Total Revenue | $604.7 million | $501.9 million | $1,852.2 million | $1,544.7 million |
| Net Income | $28.6 million | $15.7 million | $187.4 million | $136.0 million |
| Adjusted Diluted Earnings Per Share | $0.41 | $0.32 | $1.34 | $1.04 |
Revenue Breakdown
Revenue is primarily generated from three segments: Wholesale Brokerage, Binding Authorities, and Underwriting Management, which contributed as follows for Q3 2024:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change |
|---|---|---|---|
| Wholesale Brokerage | $346.7 million | $308.9 million | +12.2% |
| Binding Authorities | $76.5 million | $69.2 million | +10.5% |
| Underwriting Management | $165.0 million | $109.2 million | +51.0% |
Assets and Liabilities
As of September 30, 2024, Ryan Specialty's total assets amounted to $8,478.5 million, while total liabilities were $7,377.0 million. The breakdown of current and non-current assets and liabilities is as follows:
| Category | Current Assets | Non-Current Assets | Current Liabilities | Non-Current Liabilities |
|---|---|---|---|---|
| Total Assets | $4,019.4 million | $4,459.1 million | $3,965.9 million | $3,411.1 million |
Debt and Credit Facilities
Ryan Specialty maintains significant credit facilities to support its operations. As of September 30, 2024, the company had:
- Term Loan borrowings totaling $1,650 million.
- Revolving Credit Facility increased to $1,400 million as of July 30, 2024.
- Senior Secured Notes totaling $600 million issued on September 19, 2024.
Recent Acquisitions
In 2024, Ryan Specialty made several strategic acquisitions to enhance its market position:
- Castel Underwriting Agencies Limited for $247.6 million.
- US Assure Insurance Services for $1,079.8 million.
- Greenhill Underwriting Insurance Services for $11.7 million.
- Ethos Specialty Insurance for $44.0 million.
Stockholder Information
As of September 30, 2024, Ryan Specialty had a total of 125,096,524 shares of Class A common stock and 136,724,772 shares of Class B common stock outstanding. The company's stockholder equity totaled $632.8 million.
| Stockholder Data | Class A Common Stock | Class B Common Stock | Total Stockholder Equity |
|---|---|---|---|
| Shares Outstanding | 125,096,524 | 136,724,772 | $632.8 million |
How Ryan Specialty Holdings, Inc. (RYAN) Makes Money
Revenue Streams
Ryan Specialty Holdings, Inc. primarily generates revenue through three key segments: Wholesale Brokerage, Binding Authorities, and Underwriting Management. For the three months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue | Change from 2023 |
|---|---|---|---|
| Wholesale Brokerage | $346,666 | 59.0% | +12.2% |
| Binding Authorities | $76,497 | 13.0% | +10.5% |
| Underwriting Management | $164,966 | 28.0% | +51.0% |
Total revenue for the three months ended September 30, 2024, was $604.7 million, a 20.5% increase compared to $501.9 million for the same period in 2023.
Organic Growth and Acquisitions
Organic revenue growth accounted for $56.8 million, or 11.3%, of the total revenue increase, driven by enhanced client relationships and a growing Excess and Surplus (E&S) market. In addition, acquisitions contributed $33.4 million, or 6.7%, to revenue, with significant contributions from recent acquisitions such as AccuRisk, Castel, and US Assure.
Fiduciary Investment Income
Fiduciary investment income also plays a role in Ryan Specialty's revenue, contributing $16.6 million for the three months ended September 30, 2024, compared to $14.6 million in 2023.
Financial Performance
For the nine months ended September 30, 2024, Ryan Specialty reported total revenue of $1.85 billion, a 19.9% increase from $1.54 billion in the same period in 2023. The revenue by segment was as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue | Change from 2023 |
|---|---|---|---|
| Wholesale Brokerage | $1,114,240 | 61.7% | +14.1% |
| Binding Authorities | $245,762 | 13.6% | +17.8% |
| Underwriting Management | $446,262 | 24.7% | +38.2% |
Net commissions and fees totaled $1.81 billion for the nine months ended September 30, 2024, reflecting a 19.8% increase compared to the prior year.
Operating Expenses
Ryan Specialty's operating expenses for the three months ended September 30, 2024, were $523.2 million, leading to an operating income of $81.5 million. Key expense categories included:
| Expense Type | Amount (in thousands) |
|---|---|
| Compensation and Benefits | $393,249 |
| General and Administrative | $88,684 |
| Amortization | $39,182 |
| Depreciation | $2,467 |
Net income for the three months ended September 30, 2024, was $28.6 million, compared to $15.7 million in the prior year.
Debt and Financing
As of September 30, 2024, Ryan Specialty had total liabilities of $4.38 billion, with long-term debt of approximately $1.65 billion. The company has access to a $1.4 billion revolving credit facility as of July 30, 2024, which it can leverage for operational and acquisition financing.
Market Position and Growth Strategy
Ryan Specialty Holdings focuses on expanding its market presence through both organic growth and strategic acquisitions. The company completed several acquisitions in 2024, including:
- Castel Underwriting Agencies Limited for $247.6 million
- US Assure Insurance Services for $1,079.8 million
- Greenhill Underwriting Insurance Services for $11.7 million
- Ethos Specialty Insurance for $44.0 million
The company aims to enhance its specialty insurance offerings while maintaining a robust financial position to support further growth.
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Article updated on 8 Nov 2024
Resources:
- Ryan Specialty Holdings, Inc. (RYAN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ryan Specialty Holdings, Inc. (RYAN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ryan Specialty Holdings, Inc. (RYAN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.