Ryan Specialty Holdings Inc. Thursday reported $552 million in revenue for the first quarter, a 20.6% increase over last year’s first quarter, as the excess and surplus lines insurance market continued to attract business.
On an organic basis, which excludes the effect of mergers and acquisitions among other things, revenue increased 13.7%, compared with 13.4% in the prior-year period.
The specialty intermediary, which has wholesale broking and underwriting operations, reported net income of $40.7 million for the quarter, an 11.6% increase from the same period last year.
Ryan Specialty Founder, Chairman and Chief Executive Officer Patrick G. Ryan said during a call with analysts that property insurance revenue “continued to be very strong” and casualty was a significant contributor that saw acceleration and growth.
Property coverage will likely continue to be a strong growth driver because weather predictions call for an above-average number of hurricanes and named tropical storms, said Timothy W. Turner, president of the company.
While property rates, which increased significantly in prior quarters, are stabilizing, the cost of casualty coverage is accelerating and increasing because of rising court awards and settlements or “social inflation,” Mr. Turner said.
The company is generating more revenue from construction coverage, he said.
“We’re capturing a lot more construction business across the board, residential construction in particular. Infrastructure projects picked up, and that lag time from quote to bind has decreased, so we’re very optimistic to have a great year in construction,” he said.
He also said decreases in directors and officers liability insurance rates have slowed.
“I think we’re through the pain phase. We see some moderation there,” he said.
