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1. Company Snapshot

1.a. Company Description

Ryan Specialty Group Holdings, Inc.operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers.It offers distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter.


The company was founded in 2010 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on RYAN

Ryan Specialty Holdings, Inc.'s recent performance was negatively impacted by several factors. Despite a 24.8% year-over-year revenue growth to $754.6 million, the company's organic revenue growth rate slowed to 15.0% from 11.8% in the prior year. The company's earnings per share (EPS) of $0.47 matched estimates, but some analysts may view this as underwhelming given the company's high expectations. Additionally, the company's reliance on inorganic growth through acquisitions may pose integration risks. However, the appointment of Steve Keogh and Brendan Mulshine as Co-Presidents and the launch of a new collateralized reinsurance vehicle may support future growth.

1.c. Company Highlights

2. Ryan Specialty Holdings Delivers Strong Q3 Results with 25% Revenue Growth

Ryan Specialty Holdings reported a robust third-quarter performance, with total revenue surging 25% to $755 million, driven by a combination of 15% organic growth and 10% inorganic growth from strategic mergers and acquisitions. The company's adjusted EBITDAC grew 23.8% to $236 million, resulting in a margin of 31.2%. Adjusted earnings per share (EPS) increased 14.6% to $0.47, in line with analyst estimates. The company's financial performance was characterized by strength in casualty across all specialties, modest growth in property, and high renewal retention rates.

Publication Date: Nov -02

📋 Highlights
  • Revenue Growth:: Total revenue surged 25% to $755M, with 15% organic growth and 10% inorganic growth from M&A.
  • Margin Expansion:: Adjusted EBITDAC rose 23.8% to $236M, achieving a 31.2% margin, though 2025 margin guidance is flat to modestly down due to strategic investments.
  • EPS Growth:: Adjusted earnings per share increased 14.6% to $0.47, reflecting operational efficiency and growth drivers.
  • Future Growth Confidence:: Double-digit organic growth expected for 2025 (15th consecutive year) and 2026, with 35% EBITDAC margin target deferred to 2027 for reinvestment.

Drivers of Growth

The company's growth was driven by new business and high renewal retention rates across all specialties, despite a complex insurance and macro environment. Ryan Specialty continues to attract top talent, with significant additions to its team, and expects this momentum to continue. The wholesale brokerage specialty had a strong quarter, with growth in property and casualty, while delegated authority specialties, including binding and underwriting management, also performed well.

Investment in Growth Initiatives

Ryan Specialty is investing in growth initiatives, including talent acquisition, de novo formations, innovative products, M&A, and technology. These investments are expected to drive long-term value creation and position the company for sustained growth. The company is deferring its 2027 target for a 35% adjusted EBITDAC margin to prioritize strategic investments and capitalize on growth opportunities.

Outlook and Guidance

The company expects to deliver double-digit organic growth in 2025, marking the 15th consecutive year, and is well-positioned for similar growth in 2026. For the full year 2025, Ryan Specialty anticipates adjusted EBITDAC margin to be flat to modestly down due to investments in talent and strategic initiatives. The company expects the flow of business into the specialty and E&S market to drive growth over the long term, rather than rate increases.

Valuation Metrics

With a current P/E Ratio of 69.63 and P/S Ratio of 2.37, the market appears to have priced in significant growth expectations. The company's EV/EBITDA ratio stands at 14.24, indicating a reasonable valuation relative to its earnings. The ROE of 16.71% suggests that Ryan Specialty is generating strong returns for its shareholders. Analysts estimate next year's revenue growth at 17.2%, which is slightly lower than the current year's growth rate, but still indicates a strong growth trajectory.

3. NewsRoom

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Ryan Specialty Completes Acquisition of Canadian MGU Stewart Specialty Risk Underwriting

Dec -03

Source: businesswire.com

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Ryan Specialty Holdings Inc. $RYAN Shares Acquired by American Century Companies Inc.

Nov -26

Source: defenseworld.net

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Ryan Specialty (NYSE:RYAN) vs. Oxbridge Re (NASDAQ:OXBR) Head to Head Review

Nov -25

Source: defenseworld.net

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Here Are Thursday's Top Wall Street Analyst Research Calls: AON, Apollo Global Managment, Bullish, Jack Henry, Marsh & McClennan, Nasdaq, NVIDIA,

Nov -20

Source: 247wallst.com

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PGIM Jennison Financial Services Fund Q3 2025 Contributors And Detractors

Nov -13

Source: seekingalpha.com

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FIRETRAIL Investments Sells Off All 138K RYAN Shares Worth $9.3 Million

Nov -06

Source: fool.com

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Ryan Specialty Holdings, Inc. (RYAN) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Ryan Specialty Group (RYAN) Matches Q3 Earnings Estimates

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Ryan Specialty

Expected Growth: 8.23%

Ryan Specialty's 8.23% growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic acquisitions. The company's expertise in niche areas, such as transportation and construction, also contributes to its growth. Additionally, its technology-enabled platform and data analytics capabilities enhance operational efficiency and attract new clients.

7. Detailed Products

Wholesale Brokerage

Ryan Specialty Holdings, Inc. offers wholesale brokerage services, connecting retail brokers with specialty insurance markets, providing access to a wide range of insurance products and services.

Binding Authority

Ryan Specialty Holdings, Inc. provides binding authority, enabling agents and brokers to quote and bind specialty insurance policies on behalf of their clients.

Program Management

Ryan Specialty Holdings, Inc. offers program management services, designing and managing specialty insurance programs for agents, brokers, and carriers.

MGA/MGU Services

Ryan Specialty Holdings, Inc. provides managing general agency (MGA) and managing general underwriter (MGU) services, supporting the development and distribution of specialty insurance products.

Reinsurance Brokerage

Ryan Specialty Holdings, Inc. offers reinsurance brokerage services, connecting cedents with reinsurers and providing access to global reinsurance markets.

8. Ryan Specialty Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ryan Specialty Holdings, Inc. operates in a niche market, providing specialty insurance products and services. While there are substitutes available, they are not easily accessible, and the company's strong relationships with its clients and brokers provide a competitive advantage.

Bargaining Power Of Customers

Ryan Specialty Holdings, Inc.'s customers are largely comprised of small to medium-sized businesses and individuals, which limits their bargaining power. The company's strong brand reputation and specialized products also reduce the customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Ryan Specialty Holdings, Inc. relies on a network of suppliers, including insurance carriers and reinsurers. While the company has some bargaining power due to its size and reputation, the suppliers also have some leverage due to the specialized nature of the products and services.

Threat Of New Entrants

The specialty insurance market has high barriers to entry, including regulatory hurdles, capital requirements, and the need for specialized expertise. This limits the threat of new entrants and provides Ryan Specialty Holdings, Inc. with a competitive advantage.

Intensity Of Rivalry

The specialty insurance market is highly competitive, with several established players competing for market share. Ryan Specialty Holdings, Inc. must continually innovate and differentiate its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.14%
Debt Cost 6.81%
Equity Weight 21.86%
Equity Cost 6.81%
WACC 6.81%
Leverage 357.40%

11. Quality Control: Ryan Specialty Holdings, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MGIC

A-Score: 6.7/10

Value: 6.0

Growth: 6.6

Quality: 8.4

Yield: 4.0

Momentum: 6.0

Volatility: 9.3

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Assurant

A-Score: 6.6/10

Value: 6.2

Growth: 6.4

Quality: 6.8

Yield: 4.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Radian Group

A-Score: 6.1/10

Value: 6.7

Growth: 2.9

Quality: 6.8

Yield: 6.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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NMI Holdings

A-Score: 6.0/10

Value: 6.8

Growth: 7.7

Quality: 9.1

Yield: 0.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
First American

A-Score: 5.8/10

Value: 7.4

Growth: 3.1

Quality: 4.4

Yield: 7.0

Momentum: 4.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Ryan Specialty Holdings

A-Score: 4.0/10

Value: 2.7

Growth: 7.0

Quality: 4.8

Yield: 1.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.14$

Current Price

55.14$

Potential

-0.00%

Expected Cash-Flows