International specialty insurance firm Ryan Specialty Holdings, Inc. posted robust third-quarter financial results for 2024, with total revenue surging by 20.5% to $604.7 million, compared to $501.9 million in the same period last year. This growth was largely driven by an 11.8% increase in organic revenue and strategic acquisitions that have expanded the company’s reach and service offerings.
The company’s net income increased sharply by 82.4% year-over-year, reaching $28.6 million, up from $15.7 million in Q3 2023. Adjusted EBITDAC, a measure of operational profitability, rose 29.4% to $190.3 million. The Adjusted EBITDAC margin also grew by 2.2% from the previous year, reaching 31.5%. Adjusted net income was $113.6 million, or $0.41 per diluted share, marking a 31.2% increase from $86.6 million in Q3 2023.
Ryan Specialty attributed the robust financial performance to its expanding client relationships and revenue from recent acquisitions. By October 2024, the company had completed five acquisitions, strengthening its presence in the delegated authority business segment. These additions, the company noted, are intended to help meet rising demand and broaden its service capabilities.
Patrick G. Ryan, founder and executive chairman of Ryan Specialty, described the quarter as “excellent by all measures,” highlighting that strategic acquisitions and growing client relationships were key factors behind the strong financial results.
Further emphasizing its growth strategy, Ryan Specialty is in final negotiations to acquire Innovisk Capital Partners from Abry Partners and BHMS Investments. The acquisition, expected to close in early November, will integrate Innovisk into Ryan Specialty Underwriting Managers (RSUM), the firm’s underwriting management division.
Innovisk, founded in 2017, has established itself with a diversified portfolio with business in environmental insurance, transactional liability, and commercial auto, among other specialty lines. Headquartered in London, Innovisk has operations in the US and India, bolstering Ryan Specialty’s international footprint.
Tim Turner, CEO of Ryan Specialty, noted that Innovisk’s integration would expand the firm’s market reach. “We have tremendous respect for Innovisk. Their outstanding management team has demonstrated a differentiated value proposition to brokers, agents and carriers, and their underwriting talent is among the best in the industry,” he said.
Miles Wuller, CEO of RSUM, echoed this sentiment, highlighting the strong operational and technological foundation Innovisk brings. “We believe we have a unique opportunity to accelerate the remarkable growth trajectories of both Innovisk and Ryan Specialty by bringing the two firms together,” Wuller remarked.
Looking ahead, Ryan Specialty has projected a 13.0% to 14.0% organic revenue growth rate for 2024, with an anticipated Adjusted EBITDAC margin between 32.0% and 32.5%. The firm reported cash and cash equivalents of $235.2 million as of September 30, alongside a debt principal balance of $2.7 billion. The strong financial position is expected to support ongoing growth initiatives, officials said.
In addition to its growth strategy, Ryan Specialty declared a quarterly dividend of $0.11 per share for Class A common stock, payable on Nov. 26 to shareholders of record as of Nov. 12.
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