International specialty insurance firm, Ryan Specialty Holdings, Inc., has reported Q3 2023 revenue growth of 21.8% year over year to $501.9 million, compared to $412 million in the prior-year period, although net income fell more than 46%.
Net income for the quarter declined to $15.7 million from $29.3 million in the prior year period. The firm attributes the decrease to higher Income tax expenses during the period related to the legal entity reorganization associated with and subsequent to the Socius acquisition, partially offset by stronger year-over-year revenue growth and lower IPO-related charges.
The increase in revenue was primarily due to continued solid organic revenue growth of 14.7%, says the firm, driven by new client wins and expanded relationships with existing clients, coupled with continued expansion of the E&S market, revenue from acquisitions completed year-over-year, and increased Fiduciary investment income.
During the quarter, the company’s property portfolio was the largest growth factor across all three specialties, driven by an increase in the pricing for property insurance as well as a rise in the flow of property risks into the E&S market. The insurer also experienced broad-based casualty growth across the majority of its lines.
The insurer reported an adjusted EBITDAC growth of 25.8% to $147 million from $116.8 million in the prior-year period. Adjusted EBITDAC margin for the quarter was 29.3%, compared to 28.4% in the prior-year period.
Ryan Specialty says that this increase was driven primarily by solid revenue growth and higher fiduciary investment income, partially offset by increased adjusted compensation and benefits expenses, as well as higher adjusted general and administrative expenses.
Patrick G. Ryan, Founder, Chairman and Chief Executive Officer of Ryan Specialty, commented: “We delivered another quarter of strong double-digit organic revenue growth, received valuable contributions from recent acquisitions, and generated impressive adjusted EBITDAC growth. Our performance demonstrates our consistent and proven ability to deliver tailored and innovative solutions on behalf of our clients and trading partners.
“Throughout the quarter, we executed across our business, generated broad-based growth across our Specialties, welcomed the talented teams from three acquisitions that closed in July, and expanded our ACCELERATE 2025 program. We were also pleased to have recently announced an agreement to acquire AccuRisk, which will add breadth and depth to our growing benefits practice. We are proud of our efforts throughout the third quarter, and as we look toward the fourth quarter and new year, we remain well-positioned with our differentiated platform and world-class expertise to deliver continued, sustainable, and profitable growth for our investors.”
