On this page of StockholderLetter.com we present the latest annual shareholder letter from RYAN SPECIALTY HOLDINGS, INC. — ticker symbol RYAN. Reading current and past RYAN letters to shareholders can bring important insights into the investment thesis.
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4/17/2025 Letter Continued (Full PDF)
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3/20/2023 RYAN Stockholder Letter
• 3/18/2024 RYAN Stockholder Letter
• More "Insurance Brokers" Category Stockholder Letters
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RYAN Benford's Law Stock Score = 98
4/17/2025 Letter Continued (Full PDF)
•
3/20/2023 RYAN Stockholder Letter•
3/18/2024 RYAN Stockholder Letter•
More "Insurance Brokers" Category Stockholder Letters•
RYAN Benford's Law Stock Score = 98RYAN Shareholder/Stockholder Letter Transcript:
Letter from Executive Chairman and CEO Pat Ryan Executive Chairman It is our privilege to present Ryan Specialty's 2024 Annual Report. 2024 was another outstanding year for Ryan Specialty, marking our 14th consecutive year of double-digit organic growth and our sixth consecutive year growing our topline revenue by over 20%. We delivered on all our strategic priorities and had the largest year of M&A activity in our history, significantly bolstering our delegated authority offerings in the U.S. and abroad. Our strong results are a testament to our conviction to put our clients first, focus on specialized expertise and innovation, commitment to rewarding top talent, and our team s dedication to excellence. I am incredibly pleased with our success in continuing to be a destination of choice for so many companies considering a new home via acquisition as well as the many top talented individuals and teams joining our firm. We ve also been a leader in fostering structural changes within our industry, which have increased insurance carrier adoption of delegated underwriting authority; more broadly, these structural changes have fueled growth of the surplus lines insurance market. Our strategy has always been to build capabilities required to meet the need of insurance carriers for a trading partner of scale that can assist them in successfully navigating a rapidly evolving and increasingly complex specialty insurance market. Our vision has been to match our outstanding wholesale brokerage capabilities with an equally formidable roster of top-flight underwriting talent and solidify our position as an exceptional provider of delegated authority services. We made great strides in 2024 toward realizing that goal and see significant additional runway ahead. Beyond our outstanding performance, we were pleased to seamlessly complete our recent leadership transition. On October 1, 2024, I transitioned to Executive Chairman, while Tim Turner became our Chief Executive Officer, and Jeremiah Bickham and Janice Hamilton were promoted to President and Chief Financial Officer, respectively. Tim, Jeremiah and Janice are all experienced, remarkable leaders who have earned deep respect within Ryan Specialty and the industry. Their advancement is proof-positive of the quality and depth of the team we ve assembled over the years, with top talent and future leaders throughout the firm. I am confident we have the right people in place to lead Ryan Specialty into the future. We are stronger than ever and excited for what lies ahead. We believe that we will continue to deliver innovative solutions to our clients, generate industry-leading organic growth, execute on our M&A strategy, and increase profitability while investing in our platform and people, all of which drive significant value for our shareholders. Tim Turner - CEO Before discussing our 2024 performance, I want to express my deep gratitude to Pat for his vision and incredible partnership over the past 15 years. When Pat asked me to join with him at the founding of Ryan Specialty in 2010, it was the easiest and best career decision I have ever made. Simply put, when an industry legend wants you to help build the next great insurance business, you say Yes! I could not be more proud of what we achieved in the first 15 years of Ryan Specialty s journey. Every aspect of our founding thesis from 2010 -- retail broker consolidation, the need for wholesale brokers of scale, the growing importance of specialty lines and the non-admitted market, and the expansion of delegated authority -- has resonated in the market, as manifested in our rapid growth and our many accomplishments. We believe our first 15 years were just a prelude to the amazing opportunities in front of us, and I m honored to take the baton at Ryan Specialty. We have the foremost team in the industry firmly in place, and we believe the best is yet to come. As for our results, 2024 was another banner year for Ryan Specialty. We delivered our 14th consecutive year of double-digit organic growth1, and our sixth consecutive year growing our topline revenue by over 20%. Our excellent performance was driven by very strong new business generation, outstanding retention and significant contributions from M&A transactions. A lynchpin of these accomplishments was extraordinary execution on all fronts by our best-in-class Ryan Specialty team. Achievements for 2024 Revenue surpassed $2.5 billion, up 21.1% year over year, driven by organic revenue growth1 of 12.8% and strong contributions from M&A. Adjusted EBITDAC1 grew 29.8% to $811.2 million. Adjusted EBITDAC margin1 expanded 210 basis points to 32.2%. Adjusted Diluted EPS1 grew 29.7% to $1.79. All three of our specialties continued to deliver double-digit top-line growth on a year-over-year basis. Our Wholesale Brokerage Specialty generated strong growth, led primarily by consistent strength in the casualty insurance sector and overcoming significant property pricing headwinds in the second half of the year. Additionally, our delegated authority Specialties Binding Authority and Underwriting Management also produced fantastic results, fueled by strong organic growth, contingent commissions from delivering underwriting profits for our carrier trading partners, and meaningful contributions from M&A. 2024 was also a record-breaking year for M&A transactions based on acquired revenue, as we completed seven acquisitions, adding over $265 million of annualized revenue, complementary products, depth in certain geographies in the US and abroad, and top talent to our already formidable team. US Assure was the second largest acquisition in Ryan Specialty s history and added to our sophisticated set of Builder s Risk solutions that serve the very attractive US small-to-medium enterprise market. With our acquisitions of Castel, Geo and Innovisk, we made significant enhancements to our UK and European footprint, adeptly setting the stage to accelerate our international expansion ambitions. Our strong M&A momentum from 2024 continued early into 2025 with the acquisition of Velocity Risk Underwriters. Velocity adds critical middle market and small-to-medium commercial property capabilities, further rounding out our offering of ground-up property, shared and layered, and tier-1 catastrophe coverage. As a result, we further enhanced our position to capitalize on the clear longterm growth opportunities with respect to insuring property catastrophe risks. Through our successful M&A activity, we believe we have firmly cemented Ryan Specialty as one of the preeminent delegated underwriting authority platforms in the world. Our acquisitions further align our specialized underwriting products with our multi-industry distribution expertise to offer our clients the innovative solutions they are accustomed to receiving from Ryan Specialty. We see a broad set of strategic M&A opportunities in front of us. We will focus on adding specialized expertise, new products and capabilities, and additional geographies that will further strengthen our moat through enhanced scale, scope, and intellectual capital. As always, we will remain disciplined in our pursuit of potential acquisitions that are a strong cultural fit, strategic, and accretive. We were pleased to have raised our quarterly cash dividend in February 2025, one year after initiating the dividend program, as a means to return capital to shareholders at a sustainable and modest level without impeding our ability to pursue M&A opportunities. This dividend increase reflects our strong earnings growth, robust free cash flow and confidence in our outlook. We completed our ACCELERATE 2025 restructuring program on time and on budget. As a result, our operating model has become more mature and more scalable. This provides us with the flexibility to be able to make even larger, long-term investments in our platform, all while enhancing our margins on an annual basis. We believe 2025 will be another excellent year for Ryan Specialty. We expect another year of doubledigit organic growth, driven by secular growth factors i) retail brokers becoming larger through organic and inorganic growth, ii) retailers continuing to consolidate their wholesale distribution panels as they need to optimize client outcomes, minimize E&Os, and invest in long-term strategic relationships that help them win, and iii) an increasingly complex world that is driving more business into the specialty and E&S market. Adding to our secular growth drivers are Ryan Specialty's own attributes and strategies. Paramount among them is our ability to innovate, evolve and win, which is underpinned and perpetuated by our entrepreneurial and empowering culture, unique relationships and position of trust, and our scale and scope of expertise. We will thoughtfully invest in our business, through top talent, new capabilities, enhanced tools, technology and governance, to optimize our platform and our long-term growth profile. We will also continue to grow through M&A. The business we have built via the trust and respect we have earned from our clients and trading partners is one that is recognized as the destination of choice for world-class talent and one that is increasingly difficult to replicate. Finally, we want to express our appreciation to our Ryan Specialty teammates for their amazing dedication and unrelenting effort, which powers our success year after year. We are proud to lead such a talented and motivated team and are incredibly excited about our future. Thank you for your continued support. Respectfully yours, Patrick G. Ryan Founder and Executive Chairman 1 Timothy W. Turner Chief Executive Officer Non-GAAP Measures. For a definition and a reconciliation of Organic Revenue Growth, Adjusted EBITDAC, Adjusted EBITDAC Margin, and Adjusted Diluted EPS to the most directly comparable GAAP measure, see Management s Discussion and Analysis of Financial Condition and Results of Operation Non-GAAP Financial Measures and Key Performance Indicators in the Company s 10-K included within this Annual Report. The most directly comparable GAAP measure for Adjusted EBITDAC, Adjusted EBITDAC Margin and Adjusted Diluted EPS Growth is Net Income ($94.7 million), Net Income Margin (9.1%), and Diluted EPS Growth (36.5%), respectively.