Ryan Specialty Posts 54% Jump in Q4 Net Income

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Ryan Specialty reported a 54.6% increase in fourth quarter net income to the same period the prior year, while revenue outpaced Q4 2021 by 14.9%.

The Chicago, Illinois-based specialty insurance firm reached fourth quarter net income of $45.8 million, compared to $29.6 million in the same period last year. Revenue grew to $435 million, up from $379 million in Q4 2021. Organic revenue growth rate increased 10.3% year-over-year.

Ryan Specialty’s wholesale brokerage business accounted for $288 million of Q4 revenue.

Tim Turner, president of Ryan Specialty, said the company is seeing a large volume of new business flow into the non-admitted property market amid a tougher reinsurance renewal process that has led to less capacity and higher rates.

“This is producing increasing demand for insurance solutions and a recurring opportunity for our experience and expertise to fill that need,” said Turner on the company’s earnings call.

Turner also pointed to cyber and trucking as areas with strong growth.

Ryan Specialty set organic revenue growth rate guidance for full year 2023 to be between 10% – 13%.

“Although there is heightened macro uncertainty, the complexity of risks continues to increase, and as a result, we believe the E&S market will continue to be a standout within the insurance industry,” said Patrick G. Ryan, founder, chairman and chief executive officer of Ryan Specialty. “We expect our growth will be balanced across our diverse portfolio of products and solutions, enabling us to capture the broader E&S tailwinds while capitalizing on specific areas of accelerated growth.”

Ryan Specialty announced a two-year restructuring program, Accelerate 2025, that will result in approximately $65 million of cumulative one-time charges through 2024 and generate annual savings of approximately $35 million in 2025. The program is effective in the first quarter 2023.

Topics Profit Loss

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