Ryan Specialty agrees to buy property MGU Velocity for $525 million

Ryan Specialty Holdings Inc. said Tuesday it has agreed to buy Velocity Risk Underwriters LLC, a managing general underwriter specializing in property catastrophe insurance, for $525 million.

As part of the deal, commercial property insurer FM will buy Velocity’s excess and surplus lines insurer Velocity Specialty Insurance Co., expanding its operations into the E&S market, FM said in a statement.

“With our E&S balance sheet becoming part of an incredibly well-rated and capitalized entity in FM, it further enhances the security and capacity we bring to the wholesale market,” Phil Bowie, executive vice chairman of Velocity, said in a statement.

Nashville, Tennessee-based Velocity, founded in 2015, is owned by private-equity firm Oaktree Capital Management LP. It focuses on small to medium-sized commercial business, with an emphasis on Texas and the Southeast.

It generated about $81 million in revenue in 2024, Ryan Specialty said in a statement. The $525 million payment is exclusive of Velocity Specialty Insurance and any earnout consideration.

The deal is expected to close early this year.