Ryan Specialty Group Holdings, Inc. has reported a 49% rise in revenue to $352.8 million for the third quarter of 2021, as the one-time costs of its completed initial public offering (IPO) resulted in a net loss of $32.6 million for the period.
The company launched its IPO in July of this year, listing its Class A common stock on the New York Stock Exchange (NYSE) under the symbol RYAN.
The one-time costs incurred by the company had a negative impact of $58.6 million in the third quarter of this year, which pushed down its result by more than 400%, from income of $10.8 million in Q3 2020 to a loss of $32.6 million in Q3 2021.
The net loss also includes the impacts of the amortization from the acquired intangible assets from the All Risks acquisition, alongside higher interest expense in connection with the debt used to fund the All Risks acquisition, which completed on September 1st, 2020.
“The Ryan Specialty team didn’t miss a beat as we completed our IPO and debuted on the NYSE,” said Patrick G. Ryan, Founder, Chairman and Chief Executive Officer (CEO) of Ryan Specialty Group.
“We delivered a very strong financial performance across the board, with organic revenue growth for the quarter eclipsing 28% driven by our extraordinary talent, differentiated platform, ongoing broker consolidation, and a robust E&S market.
“In addition, our platform’s scalability facilitated another quarter of improved margins on a year-over-year basis. With the integration of All Risks in the home stretch and our exceptionally talented team of specialists, we are well positioned to maintain our momentum and execute on all phases of our game plan.”
The significant year-on-year rise in revenue was mostly a result of strong organic growth of 28.9% and also the acquisition of All Risks.
Ryan Specialty attributes the strong organic revenue growth in the quarter to new client wins, expanded relationships with existing clients, an overall expansion of the E&S market, and premium rate increases.
Following its strong performance in the third quarter of 2021, Ryan Specialty has raised its full year 2021 outlook for organic revenue growth rate to between 21.5% to 22.5%, against the previous range of 18% to 20%.
At the same time, the firm has raised its EBITDAC Margin for full year 2021 to 31.5% to 32%, compared with its previous range of 30% to 30.5%.