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]

Core Insights - Ryan Specialty Holdings, Inc. is experiencing a positive shift in analyst expectations, reflected in an increased consensus price target [1][5] - The average price target for RYAN has risen to $70, up from $66.2 last quarter, indicating growing optimism about the company's future performance [2] - The company reported a 23% increase in second-quarter revenue, reaching $855.2 million, which supports the positive sentiment among analysts [3][5] Financial Performance - Ryan Specialty's second-quarter revenue increased significantly from $695.4 million the previous year to $855.2 million, showcasing strong financial growth [3][5] - Despite the revenue growth, there are concerns that the company may not have the optimal factors for an earnings beat in the upcoming report [3] Strategic Moves - The appointment of Steve Keogh and Brendan Mulshine as Co-Presidents is a strategic decision aimed at driving further growth and innovation within the company [4] - Insider buying activity indicates strong confidence in the company's future performance, suggesting that investors should monitor these developments closely [4][5]

Core Viewpoint - Ryan Specialty has signed a definitive agreement to acquire Stewart Specialty Risk Underwriting Ltd. (SSRU), a Canadian managing general underwriter, enhancing its capabilities in the Canadian market and expanding its total addressable market [1][3]. Company Overview - Ryan Specialty is a leading international specialty insurance firm founded in 2010, providing innovative specialty products and solutions for insurance brokers, agents, and carriers [6]. - SSRU, established in 2016, specializes in underwriting large-account, high-hazard property and casualty solutions, with expertise in sectors such as manufacturing, utilities, real estate, construction, and oil and gas [2][3]. Acquisition Details - The acquisition will integrate SSRU into Ryan Specialty Underwriting Managers (RSUM) division, expected to close in the fourth quarter of 2025 [4]. - SSRU generated approximately CAD$18 million (USD$13 million) in operating revenue for the 12 months ending September 30, 2025 [5]. Strategic Importance - The acquisition is viewed as a strategic move to enhance Ryan Specialty's market presence in Canada and leverage SSRU's strong broker relationships and disciplined underwriting practices [3]. - The partnership aims to maintain SSRU's independence while expanding its reach and capabilities within the broader Ryan Specialty platform [3].

Core Viewpoint - Ryan Specialty Holdings, Inc. will release its Third Quarter 2025 financial results on October 30, 2025, after market close [1] Financial Results Announcement - The financial results will be discussed in a conference call scheduled for 4:45 PM Eastern Time on the same day [1] - Interested parties can access the conference call through a live webcast [1]

Core Insights - Ryan Specialty reported Q2 2025 GAAP revenue of $855.2 million, exceeding analyst expectations of $832.0 million, with adjusted diluted EPS of $0.66, slightly above the consensus of $0.65 [1][2] - Organic revenue growth rate was 7.1%, down from 14.2% in Q2 2024, and below the company's guidance for FY2025 of 9.0%–11.0% [1][2] - Management lowered full-year 2025 guidance for organic revenue growth and adjusted EBITDAC margin due to ongoing softness in the property insurance market [1][9] Financial Performance - Adjusted diluted EPS increased by 13.8% year-over-year from $0.58 in Q2 2024 to $0.66 in Q2 2025 [2] - GAAP revenue rose 23.0% year-over-year from $695.4 million in Q2 2024 to $855.2 million in Q2 2025 [2] - Adjusted EBITDAC increased by 24.5% year-over-year, reflecting strong operating profitability [2] Business Overview - Ryan Specialty operates as a specialized intermediary in the excess and surplus (E&S) insurance market, providing coverage for complex or high-risk situations [3] - The company's strategy focuses on expanding its E&S market presence through organic initiatives and strategic acquisitions [4] Segment Performance - Wholesale Brokerage remained the largest revenue unit with a 7.4% year-over-year increase [6] - Binding Authorities revenue grew by 17.2%, while Underwriting Management revenue surged by 73.1% year-over-year [6] - Property-focused lines experienced a modest decline, while casualty lines grew due to increased demand in various sectors [7] Strategic Initiatives - The company emphasizes strong relationships with retail brokers and insurance carriers, investment in technology, and targeted acquisitions as key success factors [4] - Supplemental and contingent commissions rose to $35.6 million, nearly quadrupling year-over-year, supported by technology investments [8] Future Outlook - Management revised full-year organic revenue growth guidance to 9.0%–11.0% from the previous 11.0%–13.0% [9] - Adjusted EBITDAC margin expectations were tightened to 32.5%–33.0% for FY2025 [9] - The company declared a quarterly dividend of $0.12 per share, payable August 26, 2025, and will focus on organic revenue growth and integration of acquired businesses [10]