Ryan Specialty Holdings Inc. reported double-digit organic growth in the third quarter despite falling property rates in the excess and surplus lines insurance market as business continued to flow into the sector and liability rates continued to climb.
While property rates fell by double digits on some accounts during the quarter, losses from Hurricanes Helene and Milton appear to have slowed or reversed that trend, the company’s CEO said.
The Chicago-based specialty intermediary continued to make acquisitions during the quarter and Wednesday announced it was close to buying a London-based underwriting group.
Ryan Specialty reported total revenue of $604.7 million for the quarter, a 20.5% increase over the same period last year and up 11.8% on an organic basis.
Among its three divisions, wholesale brokerage reported net commissions and fees of $346.7 million, up 59%; underwriting management reported $165 million, up 28%; and binding authority reported $76.5 million, up 13%.
The company reported $28.6 million in net income, up 82.4%.
Ryan Specialty continued to see business flow from the admitted property insurance market into the nonadmitted market in the quarter, but prices fell up to 20%, said CEO Tim Turner.
But the combination of losses from the two hurricanes in September and October seems to have halted sharp declines in property catastrophe rates, he said.
“We have seen evidence and validation of the market stabilizing in cat property, and we believe that we’re now in a -5%, flat, to 5% range,” Mr. Turner said.
Liability prices continue to rise, including in areas that had previously softened, such as professional liability, he said.
Meanwhile, Ryan Specialty said it was in “final discussions to acquire” Innovisk Capital Partners from Abry Partners and BHMS Investments LP.
London-based Innovisk, which was founded in 2017, owns seven managing general underwriters and generated about $58 million in operating revenue in the 12 months to July 31.
