Ryan Specialty (NYSE: RYAN), a leading international specialty
insurance firm, is pleased to announce it has signed a definitive
agreement to acquire Velocity Risk Underwriters, LLC (“Velocity”)
from funds managed by Oaktree Capital Management, L.P. (“Oaktree”).
Based in Nashville, Tennessee, Velocity is a leading managing
general underwriter (“MGU”) providing first-party insurance
coverage for catastrophe exposed properties and will become a part
of the Ryan Specialty Underwriting Managers division of Ryan
Specialty.
Velocity was founded in 2015 to focus on US property catastrophe
risks, providing hard to secure coverage for perils such as named
storm, earthquake, and tornado and hail, with an emphasis on middle
market and small to medium commercial businesses. Geographically,
Velocity has a national footprint with a particularly strong
presence in Florida, Texas, and the Southeast.
As a component of this transaction, and subject to regulatory
approval, Velocity’s wholly owned E&S carrier, Velocity
Specialty Insurance Company (“VSIC”) will be acquired by FM, a
leading commercial property mutual insurance company representing
many of the world’s largest organizations, including one of every
four Fortune 500 companies.
Remarking on this acquisition, Miles Wuller, President and CEO
of Ryan Specialty Underwriting Managers, said, “Adding Velocity to
our property catastrophe portfolio significantly enhances our
ability to serve our wholesale clients and further solidifies Ryan
Specialty Underwriting Managers as the preeminent delegated
authority platform in the country. This talented team has developed
robust technology, portfolio management, and data analytics
capabilities that augment their innovative underwriting and claims
approach. We are looking forward to having the Velocity team as a
part of the Ryan Specialty family.”
Malcolm Roberts, Chairman and CEO of FM, commented, “VSIC’s
focus on property insurance and expertise in understanding the new
risk landscape that many businesses face aligns perfectly with FM’s
mission and may eventually allow us to provide our clients with an
even broader suite of products and solutions to meet risks today
and in the future. We are excited to welcome VSIC to the FM family
and strengthen our strategic relationship with Ryan Specialty.”
Phil Bowie, Executive Vice Chairman of Velocity, added, “We are
thrilled about the synergy of our industry-leading property
underwriting and claims capability with the Ryan Specialty
organization and with FM acquiring our E&S balance sheet. With
this strategic transaction, Velocity gains expanded access to
markets and additional resources to continue on its growth journey.
With our E&S balance sheet becoming part of an incredibly
well-rated and capitalized entity in FM, it further enhances the
security and capacity we bring to the wholesale market.”
Jake Rothfuss, CEO of Velocity, added, “Through this
transaction, Velocity will continue delivering exceptional service
to brokers, customers, and capital sources. Ryan Specialty
maintains the same foundational values and innovative culture that
we have created and live every day at Velocity. The combination of
these incredible organizations will allow our teammates to further
their skills and provides the opportunity for Velocity to
accelerate the growth of our managing general underwriter to even
greater heights. Joining Ryan Specialty is the right home for the
future of our team; we’re all looking forward to our future
together.”
“We are proud to have partnered with Phil, Jake, and the entire
Velocity team and wish them success in the next chapter of the
Company’s growth,” said Greg Share, Managing Director of
Oaktree.
Velocity generated approximately $81 million of operating
revenue for the 12 months ended December 31, 20241 and is to be
acquired by Ryan Specialty for an upfront cash consideration of
$525 million, subject to customary purchase price adjustments. The
upfront cash consideration is exclusive of VSIC and any earnout
consideration.
The acquisition of Velocity is expected to close in early
2025.
Insurance Advisory Partners LLC and Howden Capital Markets &
Advisory served as financial advisors to Velocity and Oaktree, and
Debevoise & Plimpton LLP served as legal counsel to Velocity
and Oaktree. J.P. Morgan Securities LLC served as exclusive
financial advisor to Ryan Specialty and Sidley Austin LLP served as
legal counsel to Ryan Specialty. Willkie Farr & Gallagher LLP
served as legal counsel to FM.
About Ryan Specialty
Founded in 2010, Ryan Specialty is a service provider of
specialty products and solutions for insurance brokers, agents, and
carriers. Ryan Specialty provides distribution, underwriting,
product development, administration, and risk management services
by acting as a wholesale broker and a managing underwriter with
delegated authority from insurance carriers. Our mission is to
provide industry-leading innovative specialty insurance solutions
for insurance brokers, agents, and carriers. Learn more at
ryanspecialty.com.
About FM
Established nearly two centuries ago, FM is a leading mutual
insurance company whose capital, scientific research capability and
engineering expertise are solely dedicated to property risk
management and the resilience of its policyholder-owners. These
owners, who share the belief that the majority of property loss is
preventable, represent many of the world’s largest organizations,
including one of every four Fortune 500 companies. They work with
FM to better understand the hazards that can impact their business
continuity to make cost-effective risk management decisions,
combining property loss prevention with insurance protection. Learn
more at FM.com.
About Velocity
Velocity is a leading provider of risk management solutions with
a focus on delivering tailored specialty insurance coverage for
complex commercial exposures. Through strategic partnerships and a
commitment to innovation, Velocity strives to offer
industry-leading service and risk solutions for its clients and
partners. Velocity Insurance Holding Company Inc., is the holding
company for Velocity Risk Underwriters, LLC, a tech-enabled E&S
specialty property insurance managing general agent, Velocity
Specialty Insurance Company (“VSIC”), a rated E&S insurance
carrier licensed in all 50 states, and Velocity Claims LLC, a
leading claims management service. The firm has over 150 employees
across five global locations: Nashville (headquarters), Atlanta,
Birmingham, Chicago, and the UK. For more information visit
www.velocityrisk.com.
About Oaktree
Oaktree is a leader among global investment managers
specializing in alternative investments, with $205 billion in
assets under management as of September 30, 2024. The firm
emphasizes an opportunistic, value-oriented and risk-controlled
approach to investments in credit, equity, and real estate. The
firm has over 1,200 employees and offices in 23 cities worldwide.
For additional information, please visit Oaktree’s website at
oaktreecapital.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, that involve substantial risks and uncertainties and that
reflect the Company’s current expectations and projections with
respect to, among other things, its plans, objectives, and
business. These forward-looking statements may include words such
as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,”
“believe,” “may,” “will,” “should,” “can have,” “likely” and other
words and terms of similar meaning in connection with any
discussion of the proposed transaction and opportunities related
thereto, including Velocity’s ability to meet certain performance
targets or expectations, as well as the timing or nature of future
operating or financial performance or other events. All
forward-looking statements are subject to risks and uncertainties,
known and unknown, that may cause actual results to differ
materially from those that the Company expected, including
potential adverse reactions or competitive responses to our
acquisitions and other transactions, the possibility that the
anticipated benefits of our acquisitions are not realized when
expected or at all, including as a result of the impact of, or
problems arising from, the integration of acquired assets and
operations, the occurrence of any event, change or other
circumstances that could give rise to the termination of the US
Assure acquisition agreement, risks related to disruption of
management time from ongoing business operations due to the
transaction and our ability to access or obtain debt financing on
terms satisfactory to us or at all. For more detail on the risk
factors that may affect the Company’s results, see the section
entitled “Risk Factors” in our most recent annual report on Form
10-K and quarterly reports on Form 10-Q filed with the Securities
and Exchange Commission (the “SEC”), and in other documents filed
with, or furnished to, the SEC. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
indicated or anticipated by such forward-looking statements. Given
these factors, as well as other variables that may affect the
Company’s operating results, you are cautioned not to place undue
reliance on these forward-looking statements, not to assume that
past financial performance will be a reliable indicator of future
performance, and not to use historical trends to anticipate results
or trends in future periods. The forward-looking statements
included in this press release relate only to events as of the date
hereof. The Company does not undertake, and expressly disclaims,
any duty or obligation to update publicly any forward-looking
statement after the date of this report, whether as a result of new
information, future events, changes in assumptions or
otherwise.
1 Revenue attributable to the targeted to be acquired business
for the trailing twelve-month period ending December 31, 2024. This
figure has not been audited.
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version on businesswire.com: https://www.businesswire.com/news/home/20250107540122/en/
Media Alice Phillips Topping Chief Marketing &
Communications Officer Ryan Specialty
Alice.Topping@ryanspecialty.com (312) 635-5976
Investor Relations Nicholas Mezick Director, Investor
Relations Ryan Specialty IR@ryanspecialty.com (312) 784-6152
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