Ryan Specialty Holdings has disclosed that its total revenue grew 18.3% to $457.6 million in Q1 of 2023.
According to the firm, this increase was primarily due to organic revenue growth of 12.9%, which was driven by new client wins and expanded existing relationships, growth of the E&S market, revenue from acquisitions completed in Q4 of 2022 and Q1 of 2023, and increased Fiduciary investment income.
Ryan Specialty’s Q1 2023 net income grew 101.7% year-over-year to $36.5 million, which the firm attributes to the aforementioned year-over-year revenue growth and lower IPO-related charges.
Operating income for Q1 2023 stood at $70.1 million, up from $43.4 million in Q1 of 2022.
Meanwhile, Adjusted EBITDAC grew 16.5% to $125.0 million. The Adjusted EBITDAC margin for Q1 2023 was 27.3%, compared to 27.7% in the prior-year period.
Ryan Specialty suggests that the increase in Adjusted EBITDAC was also driven primarily by solid revenue growth and higher Fiduciary investment income, partially offset by increased Adjusted compensation and benefits expense, as well as higher Adjusted general and administrative expense.
Adjusted net income for Q1 of 2023 increased 10.9% to $71.8 million, compared to $64.7 million in the same quarter of 2022. The Adjusted net income margin was 15.7%, compared to 16.7% in the prior-year period.
Patrick G. Ryan, Founder, Chairman and Chief Executive Officer of Ryan Specialty, commented, “The first quarter represents a strong start to the year, generating another quarter of double-digit organic growth in the face of a persistently challenging macro environment and further validating the resilience of our differentiated business model and platform.
“Our performance was driven by broad-based growth across the portfolio, led by Property where we continue to deliver for our clients in a historically hard market.
“Looking ahead, I remain confident that 2023 will be another strong year for our firm. We continue to be well positioned to expand our capabilities while generating sustainable and profitable growth for our investors.”
