International specialty insurance firm Ryan Specialty Holdings, Inc. has reported revenue growth of 20.5% year-over-year to $604.7 million in the third quarter of 2024, compared to $501.9 million in the prior-year period, while net income spiked 82.4% year-over-year to $28.6 million.
The organic growth rate for the quarter was 11.8% for the quarter, down from 15.0% in Q3 2024.
Ryan Specialty attributes the higher quarterly revenue to solid organic revenue growth of 11.8%, driven by new client wins and expanded relationships with existing clients, coupled with continued expansion of the E&S market, revenue from acquisitions completed within the twelve months ended September 30, 2024, as well as changes in contingent commissions.
For the quarter, operating expenses climbed 21.1% to $523.2 million, driven by an increase in Compensation and benefits expense, offset by an increase in acquisition related long-term incentive compensation.
The 82.4% rise in net income for the quarter was attributed towards strong revenue growth and lower income tax expense compared to the prior-year period, partially offset by higher interest expense, net and higher other non-operating loss.
In addition, Ryan Specialty’s adjusted EBITDAC grew 29.4% to $190.3 million in the quarter, from $147.0 million in the prior-year period, while adjusted EBITDAC margin for the quarter was 31.5%, compared to 29.3% in the prior-year period.
The firm attributes the increase in adjusted EBITDAC towards solid revenue growth, partially offset by higher adjusted compensation and benefits expense, as well as higher adjusted general and administrative expense.
As well as this, adjusted net income for Q3’24 climbed 31.2% to $113.6 million, compared $86.6 million in the prior-year period.
Patrick G. Ryan, Founder and Executive Chairman of Ryan Specialty, commented: “It was an excellent quarter for Ryan Specialty by all measures. We grew total revenue 20.5% led by 11.8% organic revenue growth. We expanded Adjusted EBITDAC margin by 220 basis points year-over-year while growing Adjusted EPS by 28%. Along with our strong results, we continued to execute our M&A strategy by closing five acquisitions through the beginning of October. In addition, our leadership transition has been seamless, and we are thrilled to have Tim Turner as our new CEO. I am confident that we have the right team in place to advance our winning strategy today and over the long term.”
Tim Turner, Chief Executive Officer of Ryan Specialty, said: “We again had outstanding performance from all of our Specialties. Our team continues to tirelessly deliver value and develop innovative solutions for our clients in this difficult insurance market. We are pleased to welcome new teammates from five delegated authority businesses that have joined the Ryan Specialty family. These firms both enhance our current offerings and expand our total addressable market. We also strengthened our balance sheet given we issued new senior notes and upsized our credit facility, while reducing our borrowing margin. We continue to be well positioned to deliver sustainable and differentiated growth over the long term, and to create additional value for our shareholders.”
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