Ryan Specialty to acquire JM Wilson Corporation

CHICAGO - Ryan Specialty (NYSE: RYAN), an international specialty insurance organization with a market capitalization of $18.11 billion, has entered into a definitive agreement to acquire JM Wilson Corporation, a Michigan-based insurance firm. According to InvestingPro analysis, Ryan Specialty is currently trading above its Fair Value, with a P/E ratio of 163.6x reflecting high growth expectations. The acquisition, which is set to enhance Ryan Specialty’s presence in the Midwest and bolster its transportation insurance services, is expected to be finalized in the third quarter of 2025. The company has demonstrated strong operational performance, with InvestingPro data showing revenue growth of 22.5% in the last twelve months and an overall financial health score of "GOOD."

JM Wilson, a company with a history dating back to 1920, operates six offices across the United States and offers a diverse range of insurance products, including personal lines and surety. It has been recognized for its expertise in the transportation sector, supported by a longstanding record of underwriting profitability and enduring partnerships with reputable carriers.

Ed McCormack, CEO of RT Specialty, a part of Ryan Specialty, remarked on the acquisition, highlighting JM Wilson’s industry reputation and underwriting success. He expressed enthusiasm about the addition of JM Wilson’s talent to their team, emphasizing the strategic fit for RT Specialty’s Midwest operations and transportation practice.

David Wilson, President of JM Wilson, also commented on the merger, noting the shared values and culture between the two companies. He expressed confidence in the future growth and success within the Ryan Specialty group.

For the 12 months ending January 31, 2025, JM Wilson reported operating revenues of approximately $19 million. While financial terms of the acquisition have not been disclosed, Ryan Specialty’s robust financial position is evident in its $2.59 billion revenue over the last twelve months. For deeper insights into Ryan Specialty’s financials and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

The transaction is advised by Philo Smith, acting as the exclusive financial advisor to JM Wilson.

Ryan Specialty, founded in 2010, provides a range of services including distribution, underwriting, product development, administration, and risk management to insurance brokers, agents, and carriers. RT Binding Authority, a component of Ryan Specialty, is recognized as one of the largest binding authority platforms in the nation, offering specialty coverage solutions for small- and mid-sized accounts.

This strategic acquisition is based on a press release statement and aims to expand Ryan Specialty’s service offerings and market reach in the specialty insurance sector. The company’s growth trajectory remains strong, with analysts expecting continued profitability this year and net income growth, according to InvestingPro data, which offers additional insights through its collection of ProTips and detailed financial metrics.

In other recent news, Ryan Specialty Holdings reported first quarter earnings that met expectations, with adjusted earnings per share at $0.39, aligning with analyst estimates. The company achieved a 25% year-over-year revenue growth, reaching $690.2 million, surpassing the consensus forecast of $683.49 million. However, Ryan Specialty reported a net loss of $4.4 million, contrasting with a net income of $40.7 million from the same period last year, primarily due to higher income tax expenses linked to a legal entity reorganization. Organic revenue growth was noted at 12.9%, bolstered by new client acquisitions and expanded existing client relationships.

Additionally, Goldman Sachs upgraded Ryan Specialty’s stock rating from Neutral to Buy, raising the price target to $81.00 from $74.00. The upgrade reflects confidence in the company’s potential for organic growth, revenue expansion, and margin improvement. Goldman Sachs highlighted Ryan Specialty’s ability to outperform peers in growth and profitability despite near-term cyclical pressures in the property pricing segment. The firm anticipates that investor expectations are aligning with their projections, particularly looking forward to the second half of 2025. Ryan Specialty also declared a quarterly dividend of $0.12 per share, payable on May 27 to shareholders of record as of May 13.

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