TORONTO--(BUSINESS WIRE)--Ryan Specialty (NYSE: RYAN), a leading international specialty insurance intermediary, is pleased to announce the appointment of Stephen Stewart, President & CEO of Stewart Specialty Risk Underwriting, a Ryan Specialty managing general underwriter, to the additional role Chief Executive Officer of Ryan Specialty Canada Limited, the newly formed Canadian operating and holding entity for Ryan Specialty's underwriting management businesses in Canada. Ryan Specialty Ca. ...

Group 1: Investment Performance - Vulcan Value Partners' strategies delivered positive results in 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the Small Cap Composite gaining 3.2% in Q4 and 9.5% YTD [1] - The Focus Composite and Focus Plus Composite both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively, while the All-Cap Composite returned 1.3% in Q4 and 10.7% YTD [1] Group 2: Market Context and Strategy - Despite overvalued markets, the firm improved its price-to-value ratios, prioritizing safety and long-term gains over short-term performance, reminiscent of the late 1990s dot-com bubble [1] - The firm is maintaining its investment discipline in light of potential overvaluation in AI-related businesses [1] Group 3: Company Focus - Ryan Specialty Holdings, Inc. - Ryan Specialty Holdings, Inc. is a specialty products and solutions provider for insurance brokers, with shares trading between $48.90 and $77.16 over the past 52 weeks, closing at $50.40 on January 22, 2026 [2] - The company generates approximately 55% of its revenue from brokerage and 45% from delegated authority businesses, with the excess and surplus brokerage market representing 26% of commercial property and casualty premiums [3] - The excess and surplus market has grown at an 11% CAGR over the past 25 years, while the admitted market has grown at a 4% CAGR, indicating a favorable growth outlook for Ryan Specialty [3] - Ryan Specialty's delegated authority business does not retain balance sheet risk, and the company has experienced organic growth at a double-digit rate for the past 15 years [3] - Current pricing headwinds in the commercial property sector are viewed as a short-term issue, with the stock price currently below its long-term intrinsic value, presenting an investment opportunity [3]

Core Viewpoint - The investment strategies have shown positive returns for the year, with a focus on long-term performance over short-term results [2][5]. Performance Summary - Large Cap Composite (Gross) returned -1.4% QTD, 8.5% YTD, and 10.4% annualized since inception [3][22]. - Small Cap Composite (Gross) returned 3.4% QTD, 10.3% YTD, and 8.3% annualized since inception [3][31]. - Focus Composite (Gross) returned 0.2% QTD, 7.5% YTD, and 14.3% annualized since inception [3][36]. - All Cap Composite (Gross) returned 1.5% QTD, 11.5% YTD, and 11.1% annualized since inception [3][53]. Market Environment - The current market resembles the late 1990s, with concerns about overvaluation and a focus on AI-related stocks [5][6][7]. - AI is seen as a transformative technology, similar to the Internet, but caution is advised regarding valuations [7][9]. Investment Strategy - The company emphasizes buying only those companies with stable values, often waiting for them to become discounted enough for investment [10][12]. - The portfolio has shifted towards more healthcare and insurance-related businesses, with a focus on smaller companies outside the top 10 largest market capitalizations [11][12]. Notable Holdings - Medpace (MEDP) has shown significant growth, with a stock price increase of over 73% for the year, driven by strong free cash flow and share repurchases [13][14]. - Ryan Specialty Holdings Inc. is highlighted for its robust growth and stable margins, despite facing a short-term pricing cycle [24][25][38]. - TransUnion is recognized for its strong operating margins and successful diversification beyond credit reports [26][38]. Performance Contributors and Detractors - Alphabet Inc. and Salesforce Inc. were significant contributors to performance, while CoStar Group and Microsoft Corporation were notable detractors [37][46]. - Fiserv Inc. was a material detractor due to downward guidance and strategic shifts in its business model [30][46]. Market Trends - The small-cap sector has lagged behind large-cap returns, presenting potential opportunities for investment as it is often overlooked [15]. - The dominance of large-cap stocks in market returns continues, with the top 10 S&P 500 stocks accounting for over 50% of its return in 2025 [16].

Ryan Specialty Holdings, Inc. (NYSE:RYAN) is one of the Best Depressed Stocks to Buy Right Now. On January 14, Cantor Fitzgerald reduced the firm’s price objective on the company’s stock to $52 from $63, while maintaining a “Neutral” rating, as reported by The Fly. Notably, the initial positive stance on insurance brokers seems to be premature and overly optimistic. This is because near-term fundamentals are expected to deteriorate before they improve. Cantor Fitzgerald Reduces the Firm’s PT on Ryan Speci ...

Core Insights - Onex Corporation has fully exited its investment in Ryan Specialty Holdings, selling approximately 4.1 million shares for proceeds of $226 million [1][2] - The total proceeds realized by Onex from its investment in Ryan Specialty amount to $1.2 billion, representing a 3.8x Multiple of Capital and an Internal Rate of Return (IRR) of 49% [2] Company Overview - Onex Corporation manages approximately $57.2 billion in assets, with $8.5 billion being its own investing capital [4] - The company has a diverse investor base, including public and private pension plans, sovereign wealth funds, banks, insurance companies, family offices, and high-net-worth individuals [4] - Onex is listed on the Toronto Stock Exchange under the symbol ONEX [5]

Revenue Sources - For the nine months ended September 30, 2025, approximately 6% of revenues were generated from international operations in the UK, Europe, Canada, India, and Singapore[320]. Debt and Interest Rates - As of September 30, 2025, the company had $1,687.3 million of outstanding principal on its Term Loan borrowings, which bears interest on a floating rate, subject to a 0.0% floor[323]. - The company entered into an interest rate cap agreement with a notional amount of $1,000.0 million and a strike rate of 2.75%, terminating on December 31, 2025[324]. - A hypothetical 100 basis point increase in interest rates would result in an increase of $16.873 million in interest expense on the Term Loan principal outstanding[325]. - Cash and cash equivalents held in fiduciary capacity amounted to $1,220.388 million, with a potential impact of $12.204 million from a 100 basis point change in interest rates[325]. - The fair value of the Term Loan approximates the carrying amount as of September 30, 2025, based on available information[323]. Risk Management - The company is exposed to foreign currency risk, but the exposure from changes in exchange rates is considered immaterial[320]. - The company has implemented an investment policy to minimize counterparty credit risk, focusing on the preservation of principal and liquidity[327]. - The majority of cash and cash equivalents are held in demand deposit accounts and short-term investments, primarily consisting of AAA-rated money market funds and treasury bills[327]. Forward-Looking Statements - The company has no obligation to update or revise any forward-looking statements unless required by law[14].

Core Insights - Ryan Specialty Group reported quarterly earnings of $0.47 per share, matching the Zacks Consensus Estimate and showing an increase from $0.41 per share a year ago [1] - The company achieved revenues of $754.58 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.51% and up from $604.69 million year-over-year [2] - Ryan Specialty shares have declined approximately 20.7% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.52 on revenues of $783.6 million, and for the current fiscal year, it is $2.04 on revenues of $3.07 billion [7] Industry Context - The Insurance - Brokerage industry, to which Ryan Specialty belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Total revenue grew 25% to $755 million, driven by 15% organic growth and nearly 10% from M&A [3][27][28] - Adjusted EBITDA increased 23.8% to $236 million, with an adjusted EBITDA margin of 31.2%, slightly down from 31.5% in the prior year [3][27][28] - Adjusted earnings per share rose 14.6% to $0.47 [3][28] Business Line Data and Key Metrics Changes - The casualty business showed strong growth across all specialties, with high renewal retention and new business generation [4][19] - Property business returned to growth, driven by new business and high renewal retention, despite ongoing pricing pressures [18][19] - Underwriting management specialty grew significantly, with contributions from recent acquisitions adding over 30% to top-line growth [23][27] Market Data and Key Metrics Changes - The company noted a steady flow of business into the E&S channel, which helped maintain organic growth despite property pricing headwinds [24][32] - The property market is expected to face continued deterioration in pricing, with anticipated rate reductions of 20% to 30% [39][32] Company Strategy and Development Direction - The company is focused on strategic investments in talent, technology, and innovative products to drive long-term growth [5][6][30] - A commitment to M&A remains a top priority, with a robust pipeline for future acquisitions [28][25] - The company is deferring its 2027 target for a 35% adjusted EBITDA margin to prioritize growth opportunities [14][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit organic growth for 2025, marking the 15th consecutive year of such growth [7][30] - The company is optimistic about sustaining similar growth levels into 2026, despite potential market challenges [8][30] - Management highlighted the importance of recruiting and retaining top talent as a key driver for future success [6][16] Other Important Information - The company launched Ryan Alternative Capital Re, a collateralized sidecar to enhance its underwriting capacity [23] - Recent leadership changes were announced, with new Co-Presidents appointed to drive operational excellence and client impact [8][9] Q&A Session Summary Question: Can you unpack the 15% organic growth? - Management indicated that the growth was driven by submission growth, new business, and high renewal retention across all specialties [33][35] Question: How sustainable is the organic revenue growth in underwriting management? - Management expects continued double-digit organic growth in underwriting management, fueled by capital markets activity and strategic investments [50] Question: Will the current market environment influence talent investment decisions? - Yes, the company adjusts its talent investment strategy based on market conditions, focusing on areas with growth potential [51] Question: What are the expectations for margin improvement in 2026? - Management anticipates continued margin pressures in 2026 due to ongoing investments in talent, but modest margin expansion is expected in the long term [45][59] Question: How does the company view the current dynamics in the London specialty marketplace? - The company is revisiting its strategy in London, focusing on improving offerings and addressing potential conflicts [60]

Company Overview - Ryan Specialty is a rapidly growing provider of specialty products and solutions for insurance brokers, agents, and carriers[8] - The company was founded in 2010[9] - As of September 30, 2025 YTD, Ryan Specialty's total revenue growth was 24.2%[9] - As of September 30, 2025 YTD, Ryan Specialty's organic revenue growth was 11.4%[9] Market Position and Growth - Ryan Specialty is the 1st largest delegated underwriter[9] - Ryan Specialty is the 2nd largest U S P&C wholesale broker[9] - 78% of Ryan Specialty's premiums are placed in the attractive E&S market[13] - In 2024, Ryan Specialty's revenue growth with the top 100 retail brokerage firms exceeded Ryan Specialty's organic revenue growth of 12.8%[32] Financial Performance - Ryan Specialty's LTM Adjusted EBITDAC as of September 30, 2025, was $960 million[48] - As of March 31, 2025, Ryan Specialty had $153 million in unrestricted cash and cash equivalents[54] - In February 2025, Ryan Specialty increased its regular quarterly dividend by 9% to $0.12 per share on outstanding Class A common stock[55]

Revenue Growth - Total revenue increased by 24.8% year-over-year to $754.6 million, compared to $604.7 million in the prior-year period[1] - Organic revenue growth rate was 15.0% for the quarter, up from 11.8% in the prior-year period[4] - Growth in net commissions and fees was driven by strong organic growth across all specialties, totaling $739.6 million, a 25.7% increase[15] - Total revenue for the three months ended September 30, 2025, was $754,577,000, a 24.8% increase from $604,694,000 in the same period of 2024[14] - Total revenue for the nine months ended September 30, 2025, was $2,299,913,000, a 24.2% increase from $1,852,181,000 in 2024[14] Net Income and Earnings - Net income rose 118.6% year-over-year to $62.6 million, compared to $28.6 million in the prior-year period[10] - Adjusted net income increased 15.9% to $131.7 million, with an adjusted net income margin of 17.5%[12] - Adjusted diluted earnings per share rose 14.6% to $0.47, compared to $0.41 in the prior-year period[12] - Net income for the three months ended September 30, 2025, was $62,603,000, compared to $28,643,000 in 2024, reflecting a significant increase[14] - Net income for the nine months ended September 30, 2025, was $182,919,000, down from $187,358,000 in 2024[14] Operating Performance - Adjusted EBITDAC grew 23.8% to $235.5 million, with an adjusted EBITDAC margin of 31.2%[11] - Adjusted EBITDAC for the nine months ended September 30, 2025, was $744,440,000, reflecting a 25.1% increase from $595,174,000 in 2024[57] - Adjusted EBITDAC margin for the three months ended September 30, 2025, was 31.2%, slightly down from 31.5% in 2024[45] - The adjusted EBITDAC margin is expected to be flat to modestly down for the full year 2025 compared to the prior year[21] Expenses and Ratios - Total operating expenses increased by 23.0% to $643.8 million, primarily due to higher compensation and benefits expenses[8] - Compensation and benefits expense ratio for the three months ended September 30, 2025, was 58.4%, down from 65.0% in 2024[44] - Compensation and benefits expense ratio improved to 59.0% for the nine months ended September 30, 2025, down from 63.8% in 2024[54] Cash Flow and Financial Position - Total cash flows provided by operating activities increased to $380,421,000 in 2025, up 49.0% from $255,228,000 in 2024[47] - Total cash flows used in investing activities decreased to $707,178,000 in 2025 from $1,286,437,000 in 2024, indicating a reduction of 45.0%[47] - Ending cash balance as of September 30, 2025, was $1,373,873,000, compared to $1,356,113,000 at the end of September 2024[47] - As of September 30, 2025, the company had cash and cash equivalents of $153.5 million and outstanding debt principal of $3.4 billion[18] Strategic Investments and Future Outlook - The company made substantial strategic investments in broking and underwriting talent, as well as technology during the quarter[3] - The firm is well positioned for future growth, focusing on delivering industry-leading organic growth and long-term shareholder value[3] - The company is revising its guidance presentation to reflect increased opportunities for hiring and investments in the business[20] - The company anticipates that the increased hiring and investment opportunities will impact the adjusted EBITDAC margin in the near term[20] - The organic revenue growth rate is projected to be in double digits for the full year 2025[21] Commissions and Fees - Net commissions and fees for the three months ended September 30, 2025, were $739,552,000, up 25.7% from $588,129,000 in 2024[44] - Net commissions and policy fees for the nine months ended September 30, 2025, were $2,083,983 thousand, a 22.1% increase from $1,706,781 thousand in 2024[17] - Supplemental and contingent commissions rose by 76.0% to $103,185 thousand for the nine months ended September 30, 2025, compared to $58,618 thousand in 2024[17] - Loss mitigation and other fees surged by 69.8% to $69,369 thousand for the nine months ended September 30, 2025, from $40,865 thousand in 2024[17] - Organic revenue growth rate (Non-GAAP) for the nine months ended September 30, 2025, was 11.4%, compared to 13.3% in 2024[48]