First Quarter Results Show Revenue Growth for Ryan Specialty

Ryan Specialty released their financial results for the first quarter that ended on March 31. The company experienced a 20.6% increase in total revenue, reaching $552 million, up from $457.6 million last year during the same period. This growth was mainly due to a 13.7% increase in organic revenue, using a revised calculation method introduced this quarter.

Various factors contributed to this growth, including new client acquisitions, improved relationships with existing clients, expansion in the E&S market, revenues from recent acquisitions, and an increase in Fiduciary investment income. Operating expenses for the quarter increased by 23.7% to $479.4 million. This rise was influenced by higher compensation and benefit expenses related to revenue growth and restructuring costs associated with the ACCELERATE 2025 initiative. Despite the increase in expenses, the savings from the ACCELERATE 2025 program helped offset some costs.

General and administrative expenses also increased due to higher professional services, travel, entertainment expenses, and acquisition-related costs. Net income for the quarter saw an 11.6% increase, reaching $40.7 million. Additionally, Adjusted EBITDAC rose by 25.8% to $157.2 million, with a margin expansion to 28.5% from 27.3% the previous year.

Adjusted net income also showed a significant increase of 32.9%, totaling $95.4 million, with an improved net income margin of 17.3% from 15.7%. Adjusted diluted earnings per share rose by 34.6% to $0.35 from $0.26 in the prior-year period.The company reported cash and cash equivalents of $665.4 million at the end of the quarter, with an outstanding debt principal of $2.0 billion.

Updates to the ACCELERATE 2025 restructuring program were announced, with anticipated cumulative one-time charges of approximately $110 million through 2024 and expected annual savings of about $60 million in 2025. Founder, Chairman, and CEO of Ryan Specialty, Patrick G Ryan, expressed his satisfaction with the quarter's performance, highlighting the double-digit organic growth and margin improvement achieved. He credited the success to the hard work of their 4,400 teammates and the company's dedication to excellent service for clients and partners.

Ryan also mentioned the recent acquisition of Castel, expressing confidence in the company's ability to deliver sustainable and profitable growth in 2024 with the new additions to their team.