Ryan Specialty Launches Initial Public Offering with 57M Shares

Chicago-based insurance broker Ryan Specialty Group Holdings has filed for its planned initial public offering.

Ryan Specialty is offering 56,918,278 shares of its Class A common stock pursuant to a registration statement on Form S-1 filed with the Securities and Exchange Commission. The initial public offering price is expected to be between $22.00 and $25.00 per share.

Ryan Specialty intends to grant the underwriters the right to purchase up to an additional 8,537,742 shares of its Class A common stock.

Ryan Specialty has applied to list its Class A common stock on the New York Stock Exchange under the symbol “RYAN.” Upon completion of the proposed initial public offering, Ryan Specialty will be the sole managing member of Ryan Specialty Group LLC (Ryan Specialty Group) and will exclusively operate and control all of its business and affairs.

RSG is a provider of specialty products for insurance brokers, agents and carriers. It provides distribution, underwriting, product development, administration and risk management services by acting as a wholesale broker and a managing underwriter.

According to its SEC filing, RSG is the second-largest U.S. property/casualty insurance wholesale broker and the third-largest U.S. property/casualty managing general agency and underwriter. Its distribution network has more than 650 producers who have access to more than 15,500 retail insurance firms and over 200 excess and surplus lines carriers.

Since 2010, RSG has completed 40 acquisitions in various specialties and geographies. In September 2020, RSG acquired All Risks Specialty, the fourth largest wholesale distributor. RSG says the All Risks acquisition advanced many of its strategic priorities and enhanced its competitive position. The firm is currently merging All Risks Specialty’s binding authority service model and premium scale with its own technology platform, The Connector, through which retail clients can receive quotes and bind policies online

For the years ended December 31, 2020 and 2019, RSG generated:

RSG said its financial performance includes a 49.6% and 33.1% increase in revenue from March 31, 2020 to March 31, 2021 and 2019 to 2020, respectively. Despite the rapid pace of growth, while its net income margin decreased due to costs primarily associated with the All Risk acquisition, the broker was able to expand its adjusted net income margin and adjusted EBITDAC margin from March 31, 2020 to March 31, 2021 and December 31, 2019 to December 31, 2020.

J.P. Morgan, Barclays, Goldman Sachs & Co. LLC and Wells Fargo Securities are acting as lead book-running managers, and UBS Investment Bank, William Blair, RBC Capital Markets, BMO Capital Markets and Keefe, Bruyette & Woods, A Stifel Company are acting as book-running managers for the proposed offering. Dowling & Partners Securities LLC, Wolfe |Nomura Strategic Alliance, Capital One Securities, CIBC Capital Markets, Loop Capital Markets, PNC Capital Markets LLC, Ramirez & Co., Inc. and Siebert Williams Shank are acting as co-managers for the proposed offering.

Topics Excess Surplus New Markets