Ryan Specialty (US:RYAN)2025-10-30 21:45Financial 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]