Ryan Specialty to further expand builder’s risk portfolio with latest acquisition
Ryan Specialty to further expand builder’s risk portfolio with latest acquisition | Insurance Business America
Insurance News
Ryan Specialty to further expand builder’s risk portfolio with latest acquisition
Company also reported its results for the second quarter
Insurance News
By
Kenneth Araullo
Ryan Specialty has announced a definitive agreement to acquire US Assure Insurance Services of Florida, Inc, a leading program specializing in builder’s risk insurance.
US Assure, headquartered in Jacksonville, Fla., will become part of Ryan Specialty’s Underwriting Managers Specialty division. Established in 1977, US Assure is known for its strong presence in the small to middle market segment of the builder’s risk insurance market, with a diversified portfolio and relationships with over 20,000 active agents.
The company issues admitted market insurance coverage on behalf of Zurich American Insurance Company, an AM Best “A+” rated carrier.
Patrick G Ryan, founder, chairman, and CEO of Ryan Specialty, highlighted the significance of acquiring US Assure.
“Specializing in builder’s risk, US Assure underwrites a diversified portfolio of residential, commercial, and remodeling projects in non-urban locations as well as large metropolitan areas. Ty Petway and his team have consistently produced profitable business on behalf of their carrier trading partner. We look forward to including US Assure in the Ryan Specialty family,” Ryan said.
Ty Petway (pictured above), CEO of US Assure, also expressed confidence in the partnership with Ryan Specialty, citing the alignment of values and a shared focus on profitable underwriting.
“Ryan Specialty’s values and emphasis on profitable underwriting align with the US Assure way. Being a part of the RSUM platform, with its extensive distribution relationships and technical expertise, will enable our team to continue to grow and expand. We are very much looking forward to being a part of the Ryan Specialty family,” Petway said.
Zurich will continue to serve as the builder’s risk carrier, maintaining the same program capacity and underwriting guidelines. The acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions. Dowling Hales served as the exclusive financial advisor to US Assure, while Ardea Partners advised Ryan Specialty.
Ryan Specialty Q2 2024 results
In a separate announcement, Ryan Specialty reported financial results for the second quarter ended June 30, 2024. The company recorded an 18.8% increase in revenue, reaching $695.4 million compared to $585.1 million in the prior-year period.
The Organic Revenue Growth Rate for the quarter was 14.2%, slightly down from 16.3% in the previous year.
Net income rose by 40.8% to $118 million, compared to $83.8 million in the prior-year quarter, resulting in diluted earnings per share of $0.37. Adjusted EBITDAC* grew by 27.6% to $247.7 million, with an Adjusted EBITDAC Margin* of 35.6%, up from 33.2%.
Adjusted Net Income* increased by 29.8% to $160.6 million, with Adjusted Diluted Earnings per Share* rising 28.9% to $0.58.
The company returned $18.6 million in capital to shareholders and LLC unit holders through regular dividends and distributions.
“We delivered another fantastic quarter for our shareholders, once again driven by broad-based double-digit organic growth as well as significant margin expansion,” Ryan said.
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