Ryan Specialty targets more M&A in 2024

Ryan Specialty Holdings Inc. sees significant acquisition opportunities in the year ahead, including some large deals, the specialty brokerage’s top executive said on a call with analysts Tuesday.

“We continue to see substantial M&A opportunities,” said Patrick G. Ryan, founder, chairman and CEO of the Chicago-based brokerage, while discussing the company’s fourth-quarter results. “Our M&A pipeline remains robust and includes both tuck-ins and potential large deals.”

In 2023, Ryan Specialty had its second-largest year in terms of acquired revenue, he said.

Ryan Specialty reported $532.9 million in fourth-quarter revenue, a 22.5% increase over the same period in 2022. On an organic basis, which excludes the effect of acquisitions and foreign currency fluctuations, revenue rose 16%.

The company’s wholesale brokerage division reported $342.7 million in net commissions and fees for the quarter, up 66.1% compared with the same period in 2022; underwriting management reported $108.6 million, up 20.9%; and binding authority reported $67.4 million, up 13%.

Net income increased to $58.5 million, a 27.8% increase compared with the year-earlier period.

For the full year, revenue grew 20.4% compared with 2022 to $2.08 billion, up 15% on an organic basis. Net income rose 19.1% to $194.5 million.

Tim Turner, president of Ryan Specialty, said the company continued to see property and casualty business flow into the excess and surplus lines market at a double-digit pace as insurance rates continue to increase across several lines, most notably for property coverage.

“We’re seeing double-digit rate increases on cat property, whether it’s coastal wind, wildfire, flood, convective storm business,” he said.