Global specialty insurer Ryan Specialty Holdings, Inc. has reported revenue growth of 14.9% in the fourth quarter of 2022 to $435 million, as net income increased by almost 55% to $45.8 million, compared with $29.6 million a year earlier.
The organic growth rate for the quarter was 10.3%, down from 15.4% in Q4 2021. For the full year 2022, the organic growth rate was 16.4%, compared with 22.4% for 2021.
The firm attributes the higher quarterly revenue to solid organic growth, driven by new client wins and expanded relationships with existing clients, coupled with continued expansion of the E&S market, revenue from acquisitions completed in the fourth quarter of 2021, and increased fiduciary investment income.
For the quarter, operating expenses spiked 10% to $355.8 million driven by an increase in compensation and benefits expense, offset by a decline in acquisition related long-term incentives.
The 54.6% rise in net income for the quarter followed strong year-on-year revenue growth, as well as lower IPO charges, partially offset by higher interest expense.
Total revenue for the year increased by more than 20%, year-on-year, to $1.7 billion. At the same time, net income grew by a significant 188% in 2022 to $163.3 million, compared with $56.6 million in 2021.
Alongside its quarterly and full-year results, Ryan Specialty has also announced ACCELERATE 2025, a new two-year restructuring programme, effective in Q1 2023, designed to enable further growth, fuel innovation, and deliver sustainable productivity improvements over the long term.
The firm expects the new programme to drive approximately $65 million of cumulative one-time charges through 2024 and Ryan Specialty expect the programme to generate annual savings of approximately $35 million in 2025.
Looking ahead, for 2023, the company’s organic revenue growth rate has been pegged at between 10% and 13%.
Patrick G. Ryan, Founder, Chairman and Chief Executive Officer of Ryan Specialty, commented: “The Ryan Specialty team ended 2022 on a strong note, as another quarter of double-digit organic growth enabled us to generate 16% organic revenue growth for the full year, an outstanding accomplishment considering the progressively challenging macro environment throughout the year.
“This performance is continued validation of our differentiated business model and the strong execution from our world-class teammates throughout the year on behalf of our clients. As we look ahead to 2023, we see clear opportunities to invest in our business and optimize our operations to create additional efficiencies and enhance our platform in order to capitalize on growth opportunities while accelerating margins in the mid to long term. We remain well positioned with our strong balance sheet and E&S focus to continue expanding our market share, generating profitable growth and delivering long-term value for our investors.”
