Ryan Specialty Highlights Sales Growth in First Quarter Results | Insurance business America
CEO announces “double-digit organic growth” to start 2024
Insurance News
By Kenneth Araullo
Ryan Specialty reported its financial results for the first quarter ended March 31.
The company reported a 20.6% increase in total revenue to $552 million, up from $457.6 million in the corresponding period last year. This growth was primarily driven by a 13.7% increase in organic sales, based on a revised calculation methodology introduced this quarter.
Contributing factors include new customer acquisition, improved relationships with existing customers, expansion in the E&S market, revenue from recent acquisitions and an increase in trust investment income.
Operating expenses for the quarter increased 23.7% to $479.4 million, impacted by higher compensation and benefits related to revenue growth and restructuring costs related to the ACCELERATE 2025 initiative.
Despite these increases, savings from this program helped offset some expenses. General and administrative expenses also increased due to increased professional services, higher travel and entertainment expenses and higher acquisition-related costs.
The company reported an 11.6% increase in net income to $40.7 million compared to $36.5 million in the first quarter last year. Adjusted EBITDAC increased 25.8% to $157.2 million, with margin increasing to 28.5% from 27.3% a year ago.
Adjusted net profit recorded a significant increase of 32.9% and amounted to $95.4 million, while adjusted net profit margin improved from 15.7% to 17.3%. Adjusted diluted earnings per share increased 34.6% to $0.35, compared to $0.26 in the year-ago period.
ACCELERATE 2025 and Ryan Specialty’s outlook
At the end of the quarter, Ryan Specialty reported cash and cash equivalents of $665.4 million and outstanding principal of $2.0 billion. The Company also announced updates to its ACCELERATE 2025 restructuring program, anticipating cumulative one-time charges of approximately $110 million through 2024 and expected annual savings of approximately $60 million in 2025.
Patrick G. Ryan, founder, chairman and CEO of Ryan Specialty, was positive about the quarter’s results.
“We have had a great start to 2024, driven by another quarter of double-digit organic growth and further improvement in our margin profile,” he said.
“Our outstanding success continues to be broad across all of our areas of expertise and includes valuable contributions from our recent acquisitions,” said Ryan. “This momentum reflects the determination of our 4,400 talented teammates to excel and provide best-in-class service to our customers and trading partners.
“We are also very pleased to have just yesterday announced the completion of our acquisition of Castel and the addition of this venerable team to our company. This influx of additional world-class underwriting talent strengthens our delegated authority offering, strengthens our international presence and expands our total addressable market. I remain confident that 2024 will be another outstanding year for our company as we are well positioned to deliver sustainable and differentiated profitable growth,” he said.
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2024-05-03 14:34:59
www.insurancebusinessmag.com
