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CHICAGO - Ryan Specialty (NYSE: RYAN), a global specialty insurance organization with a market capitalization of $17.6 billion and a "GOOD" overall financial health rating according to InvestingPro, has entered into a definitive agreement to acquire certain assets of USQRisk Holdings, LLC, a move that is set to expand its alternative risk business segment. The transaction is scheduled for completion in the second quarter of 2025.
USQRisk, established in 2020 with operations in New York and London, specializes in underwriting non-traditional insurance risks and has two main divisions: Alternative Risk and Facilities. The acquisition is expected to enhance Ryan Specialty’s portfolio by adding innovative structured solutions in liability, property, and auto insurance.
Kieran Dempsey, CEO of Ryan Alternative Risk, emphasized the value USQRisk will bring to the company, citing its reputation for innovation and the quality of its alternative risk solutions. He also mentioned the existing partnership between Ryan Specialty’s AXSAL Re and USQRisk, which provides excess coverage for mid-sized trucking fleets.
Anibal Moreno, CEO of USQRisk, expressed confidence in the acquisition, noting Ryan Specialty’s leadership in the alternative risk sector and the benefits of joining such a firm, including access to preferred trading status with major brokers and robust capital support.
The financial details of the deal remain undisclosed. However, the acquisition is projected to contribute approximately $11 million in incremental operating revenue to Ryan Specialty, based on the 12 months ended December 31, 2024. This addition would complement the company’s strong revenue growth of 21.17% over the last twelve months, during which it generated total revenue of $2.46 billion. This revenue figure is yet to be audited.
TAG Financial Institutions Group, LLC served as the financial advisor to USQRisk for this transaction.
Ryan Specialty, founded in 2010, is known for providing specialty products and solutions to insurance brokers, agents, and carriers, including distribution, underwriting, product development, administration, and risk management services. The acquisition is part of the firm’s ongoing efforts to offer innovative specialty insurance solutions in the market.
This news is based on a press release statement from Ryan Specialty.
In other recent news, Ryan Specialty Group reported its quarterly Operating EPS of $0.45, aligning with the consensus estimate. This performance was driven by higher-than-expected commissions and fees, offset by increased compensation and general administrative expenses. The company has provided guidance for fiscal year 2025, projecting an organic growth rate of 11-13% and an adjusted EBITDAC margin of 32.5-33.5%, which did not meet analysts’ expectations. Consequently, Keefe, Bruyette & Woods adjusted the price target for Ryan Specialty Group to $76 from $77, maintaining an Outperform rating despite the revised margin outlook and increased interest expenses. Analyst Meyer Shields noted that earnings per share estimates for 2025 and 2026 have been revised to $2.08 and $2.60, respectively.
Additionally, Ryan Specialty has completed its acquisition of Velocity Risk Underwriters, LLC, a managing general underwriter specializing in catastrophe-exposed properties. This acquisition, facilitated by Oaktree Capital Management, aims to enhance Ryan Specialty’s capabilities in providing insurance coverage for properties at risk of natural disasters. The integration of Velocity into Ryan Specialty’s Underwriting Managers division marks a strategic expansion for the company in the specialty insurance sector. The financial terms of the acquisition were not disclosed, but it aligns with Ryan Specialty’s strategy to broaden its service offerings and market presence.
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