Patrick G. Ryan, Founder, Chairman and CEO of international specialty insurer Ryan Specialty, has asserted that excess and surplus (E&S) lines will “continue to be a standout within the insurance industry” over the coming year.
Writing in an introduction to the company’s annual report, Ryan commented on its performance over the past year, as well as the opportunities and challenges ahead.
Ryan Specialty reported revenue growth of more than 20% last year, which amounted to $1.7 billion, and its net income also grew by a significant 188% in 2022 to $163.3 million, compared with $56.6 million in 2021.
“The significance of the specialty insurance sector, and its place in the crucial function that insurance fulfills in facilitating global commerce, has never been more evident,” Ryan explained in his letter to shareholders. “In continuing with our contribution to this critical component of the insurance market, Ryan Specialty had another outstanding year in 2022.”
“While economic uncertainty and a tough insurance market presented a number of hurdles, they also provided additional opportunities to further grow our business and expand our market share,” he continued.
Looking to the year ahead, Ryan said he continues to foresee “solid growth” in Ryan Specialty’s underlying business driven by broad E&S tailwinds, and is expecting his company to grow its business through M&A, and look to grow through its alternative risks and benefits strategies.
In particular, he highlighted the E&S market as a standout, explaining that “flow continues to enter this important segment of the market at an accelerated rate, while pricing is holding firm or accelerating in many lines of business.”
“We remain committed to serving the increasing demand and our clients’ needs for specialty insurance solutions, particularly given the increasing challenges in finding coverage for hard-to-place risks,” Ryan said.
Nearly all of Ryan Specialty’s business is commercial, and over 70% of our premiums placed are in the E&S market, with the majority of the products that it places or underwrites on behalf of clients being compulsory.
These could be crucial factors for the company in weathering the uncertain macro environment this year, Ryan noted.
