Newly-Public Ryan Specialty Group Reports Strong Q2 Results

Ryan Specialty Group Holdings, Inc., which completed its initial public offering on July 26, announced results for the second quarter including 58.3% growth in total revenue year-over-year to $390.0 million, compared to $246.3 million in the prior-year period.

The organic revenue growth rate was 28.5% for the quarter, compared to 18.5% for the same quarter last year. Net Income increased by 27.1% to $63.4 million, compared to $49.9 million in the prior-year period.

Patrick G. Ryan, founder, chairman and chief executive officer of Ryan Group, called the quarter “outstanding” with “significant progress in the quarter” in all facets of the business due to momentum “primarily driven by new client wins, expanded relationships with existing clients and premium rate increases.”

Ryan noted that during the second quarter, the firm furthered the integration of its acquisition of All Risks and the “impact of that acquisition continues to resonate in the marketplace.”

He said the firm also continues to benefit from “retail broker consolidation, further consolidation of wholesale broker panels, and a rapidly growing E&S market.”

Total operating expenses for the second quarter of 2021 were $297.8 million, a 57.8% increase compared primarily due to an increase in compensation and benefits expense.

Wholesale brokerage net commissions and fees increased by 48.7% to $256.0 million, compared to $172.1 million in the prior-year period. This increase was primarily due to strong organic growth within the specialty, as well as contributions from the All Risks acquisition.

KBW analyst Meyer Shields said the results reflected higher-than-expected revenues and lower-than-expected expenses. Shields noted the “very strong quarter” included above-average 28.5% organic revenue growth and gave Ryan a “very positive outlook.”

Source: Ryan Specialty

Topics Profit Loss