Ryan Specialty completes Velocity Risk acquisition

Ryan Specialty has completed its previously announced acquisition of Nashville, Tennessee-domiciled Velocity Risk Underwriters, LLC for $525 million from funds managed by Oaktree Capital Management, L.P.

The acquisition aims to expand Ryan Specialty’s property catastrophe portfolio as Velocity, a provider of first-party insurance for catastrophe-exposed properties joins the buyer’s Ryan Specialty Underwriting Managers division.

Velocity was founded in 2015 focusing on U.S. property catastrophe risks, providing insurance for named storms, earthquakes, tornadoes and hail events, and catering to middle-market and small to medium-commercial businesses.

Currently, Velocity has a strong presence in Florida, Texas, and the Southeast U.S., and in 2024, generated approximately $81 million of operating revenue.

As it was previously announced, as part of the transaction, Velocity Specialty Insurance Company (VSIC), Velocity’s wholly owned E&S insurance carrier, will be acquired by commercial property mutual insurer FM, subject to regulatory approval.

Insurance Advisory Partners LLC and Howden Capital Markets & Advisory served as financial advisors to Velocity and Oaktree, and Debevoise & Plimpton LLP served as legal counsel to Velocity and Oaktree.

Meanwhile, J.P. Morgan Securities LLC served as exclusive financial advisor to Ryan Specialty and Sidley Austin LLP served as legal counsel to Ryan Specialty. Willkie Farr & Gallagher LLP served as legal counsel to FM.

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