Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and thank you for joining us today for Ryan Specialty Holdings' Second Quarter 2023 Earnings Conference Call.

In addition to this call, the company filed a press release with the SEC earlier this afternoon, which has also been posted to its website at rryanspecialty.com.

On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements. Investors should not place undue reliance on any forward-looking statement. These statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. review in detailed the the to risk of SEC. encouraged contained factors company's are the discussion more these Listeners filings with in The such required duty no law. the statements by company as future, to except assumes forward-looking update

discussed in the Additionally, and this Reconciliations accordance isolation as with should will the for in call a considered GAAP. on substitute certain be financial measures website. non-GAAP most or financial the be not GAAP financial comparable information release, prepared of presented in filed to with the on in non-GAAP accordance and are included with measures closely earnings is which available measures SEC the company's

With that, Executive to Chief Officer over I'd of Ryan call Ryan. now to the Specialty, Founder, and turn the Chairman Pat like

Patrick Ryan

to me Turner; of results. Relations. second Good afternoon, Nick discuss our Jeremiah Wuller; and our and on President, from Tim call Mezick thank With is our our CFO, Managers, Miles CEO Bickham; Investor us quarter Underwriting you today's joining for

across strong growth of Ryan Specialty total quarter in organic second XX.X% by had on continuing We led objectives. and revenue a our with of the of grew XX.X%, great momentum financial operational XXXX. strategic XX.X% all growth organic the quarter building of

basis. adjusted growth net also EBITDAC We a year-over-year achieved in adjusted income double-digit and on

half offset performance calls first throughout experienced our in pleased with in particularly business. prior expectations and noted quarter I'm in very of in line We of saw broad-based with strength the and property. across of individual were partially many strong we and our specialties, some very on lines in our tailwinds the property Overall, The headwinds our XXXX. the specific we

lost acquisitions, execute and benefits great M&A practice. delivering our we In added specialty to and results, In scope strategic scale completed and strategy. Wholesale on our X addition continue our July, we to attractive which to

in high-quality key our Socius first our annual scope Insurance San Francisco, Tampa and scale talent hubs cyber teams deepens $XX Socius adds Services. million and The revenue and and is Miami. lines to Approximately of like professional

long-standing relationships familiarity ability firms expand XXX with are outlook We proprietary our in our and team proven carrier the grow to confident the help platform relationships. with business, given access on through products our the top and our brokers retail our for this to

also benefits and under capabilities foundational Ryan adding revenue. $XX acquisitions. employee Benefits. completed and We benefit talent These Specialty X partners, Healthcare of provide ACE PointX million exceptional just firms annual for

track medical are We assessed have in than record both diligently perfectly firms firms the and margin market, the growth stop-loss with a focus that aligned those benefits these And opportunities average. targeting long-term greater attributes. have of industry

plays insurance stop-loss high-cost Medical the smoothing a vital benefits against self-funded care the volatility through reinsuring health plan by role in spend claims.

in in expect more role as insurance become drugs accelerate to to strategies, continue prevalent. We stop-loss high-cost financing care play medical therapies innovation crucial and risk particularly health gene and mitigation a

to to billion premium have excited are the long that XX% growth to We inorganic these organic We in and believe XXXX. pleased rate for growth are both in this runway enter U.S. is and specialties. a in niche there boasts our since benefits compound over capabilities a $XX annual with

and a pipeline we as our remains accretive. current the when are all will disciplined be only M&A forward particularly acquisitions, cultural the of robust. Each strong on of fit, Further in remain met. our pursuit our environment, must acquisition front, move in We criteria strategic

prospects. maintain proven long-term winning particularly us as formula in and further our to investments, of additional during in capabilities brought we new We current of we enhance anticipate growth our talent make future. clients on returns targeted the greatest the colleagues the and need continue the are areas part our where quarter to develop recruitment investments offer for shareholders to These our a

restructuring program to That XXXX, us X-year our earlier year. takes ACCELERATE announced this

enable continued deliver over will that sustainable long productivity improvement. and are growth, investments the accelerate We increases drive margin term innovation, making

remain further. XXXX $XX made discuss with progress charges to the expected Jeremiah to cumulative at on special which targeted of through in solid have be quarter, of will second in We generate million the track least least million savings end a at We $XX annual XXXX.

second E&S the continues remained marketplace robust. that solutions Throughout E&S quarter, are risks. available for to otherwise not the provide hard-to-place

where We've to of in brokers, cat previously agents invested our we opportunities and significantly business ability expand the us lines and to to in through our alternatives insurance transportation. placements we've to most. grow to clear traditional As like clients noted, areas creating bolstering also lines those continued property and we addition in need serve carriers innovation see the

market Looking strong another insurance firm. be will we ahead, remain to and persist, we specialty XXXX year expect our to continue that for dynamics favorable confident

a capture and position in tailwinds further on also accelerated our to capitalize lines are broader We specific prime E&S growth. of

shift. competition, business the of differentiated us Our when allows our pivot adapt and remain model and conditions us ahead to to market enables quickly flexibility

strategic to through able of because for and trading clients partners further our and value expand scope to who our We're all continue scale, capital. of total team, acquisitions exceptional shareholders. deliver our with intellectual consistently addressable and market do results of our innovation and We moat this ultimately, our to deepen impressive

Now to pleased turn Tim? to it I'm Tim. over

Timothy Turner

Pat. Thank you very much,

as industry for to new make reduced specialties effects it our continue appetite quarter climate inflation noted, natural pullback business solutions Pat strong such The and insurance another change and underwriter market. our as producing innovative execute was successfully a inflation social in clients. trends and of an insurance incredibly exits happening with market we winning capital, As broad-based on across challenging disasters, and for concurrently economic accelerating

continuous adequacy the uncertainty more rate of into which marketplace, reserve freedom is environment E&S Additionally, in and growing offers risks loss more form. significantly and in driving change the

market, to team's and expand specialized our expect industry-leading share. our and Given to our to for clients delivering navigate of market the complexities ability continue the we plan further

our specialties. Diving into

shortages storms another loss up levels from costs. and Our convective of labor secondary Wholesale growth. severe higher are generated and inflation elevated driving of persistent including quarter Brokerage specialty cost attritional property, strong In and materials of perils,

Additionally, of more ultimately reinsurance higher These reduction E&S to into including volatility proper driving are U.S. and the new into capacity market. flow costs, the ongoing market. and in for available requirements business risk factors market higher direct continuing drive property valuations are conditions, of retentions

E&S The rate more conservative responding, appetites, experiencing yet limit risk. also is and market severe especially wildfire, storms, significant it property, convective tighter increases and is coastal earthquake management, on flood

positioned well are market. our the navigating complexities this We to clients in assist of

creative experts of challenging solutions bring tirelessly team market. important and our A+ Our partners to in and trading working brokers retail are to this

social quarter a transportation Our practice to underwriter and by fueled inflation, need for continued market exits. in continued flow in appetite increases the and carrier substantial pullback see rate

win share remain new additional fair growth to our than business on to continue We capitalize more and of well positioned opportunities.

Our very casualty in the well also practice quarter. performed

teammates inflation and as reserving ahead. issues, the channel of July, successfully and with about have long we clear addition are trends, the running real of flow to runway loss and ground Wholesale across higher And see growth plan, the see like the to completed Overall, specialty E&S drive health both primary its new estate. of and care, and excited continue hit lines into in and more Pat a particularly habitational continues beginning consistent excess We acquisition who are Brokerage our casualty, execute at match Ryan game noted, the a we Socius Specialty. of cultural

in binding, another business growth in capacity continued lines growth which we includes Authority specialty, of Binding our solid small commercial and quarter traditional despite personal saw In constraints.

see to long steady and opportunity, for are to panel further execute. and consolidation continue well a potential We growth as positioned we

and in results steady Our strong property growth Underwriting and Re. profitable Ryan MGU, continued Management by specialty casualty led also our reinsurance generated and

PointX and the We also launched ACE Healthcare our of practice benefits Partners. Benefit acquisitions with

Our forward we opportunity fast-growing large we specialty and this rapid important to see Zern was a loss this clear could our of in niche. on for extremely expansion practice. in market force are value within where ahead. progress team work and the We his benefits medical team add and updating in hard determining quarters you is sales stop thoughtful in where John the at expanding best look this

the specific our company in quarter, call M&A lower certain had As transactional mentioned second on Pat line the with public namely remained as we prior volumes just in starts delayed D&O, and our lines in headwinds noted, liability expectations. in construction and and external

benefit growth second year. in be modest half the the in lines X any expect We to of these

stages firm or held we price. see we the Exceptions business in historically pressure to QX, Through largely D&O further all saw cycles. the of cyber with to company public where in lines remained prolonged a hard of many market. as the Turning accelerated market and Pricing strongest momentum. E&S remain continuing with property rate in

market meaningfully lines we the large yet pricing to continues perceived rate step see aggregate. flow towers. on have or certain pricing we are increase overall, in to the admitted and adequacy, see to standard As still markets placements particularly within certain back But in impact reach

into more so significant expect be the growth business market non-admitted than driver the We continue rate. to flow to Specialties of of Ryan a

that, the detail Chief With quarter. will results you. Thank who Officer, you call the I now over our to more turn Jeremiah on of Bickham, second give will Financial financial our

Jeremiah Bickham

benefit amounts in grew fueled property, organic by from XX.X% tailwinds quarter many Tim. business. lines to broad-based ongoing much substantial period-over-period million we of as you, another QX, to particularly our the in our of continue Thank $XXX new and In XX.X% individual market, the revenue win total strong ability E&S of we revenue to at strength growth of

net 'XX $X.XX income $XX period-over-period the or $X.XX the quarter or adjusted was QX Net XX.X% grew diluted Adjusted for $XXX points basis income XX second quarter was Adjusted million margin to million, while per EBITDAC million share. declined XX.X%. per share. diluted EBITDAC for $XXX for to

was year's our income. offset fiduciary levels, return higher both margin which continuing in by partially were normalized Our impacted investments and continued last business, to to T&E EBITDAC of investment by including hiring

We program. on as was Turning the savings be in $XX special to XXXX cumulative swing, had ACCELERATE XXXX. program well quarter remain to with of schedule. to million full through at million end We $XX our into the annual million at charges least move the to $XX projected slightly ahead approximately of least in of able generate charges XXXX track of

underwriting recruitment our particularly highest our winning growth fiduciary continue investments the make of recruiting back talent to maintain the along efforts talent, are As continued and will of These be margin continue year. half expect to annualization noted, to shareholders we but and part also offset XXXX our Pat in in the these and partially proven with to our new quarter, impact offer consistent ranks long-term growth, of by a cost in investments, returns investments colleagues, headcount broking prospects. the the income. of will targeted in The formula for increases investment to adding

net income in million $XX on QX. QX Based expect and GAAP is we of on million our interest of our to record approximately expense, $XX funds forecast, in current interest which operating

beginning the at reminder, paid QX, our As we balance to of X/XX most X quick recently acquisitions the our relative sheet. a funds which for reduced announced operating

We to are organic rate of guide range up guiding growth from XXXX now XX.X%, XX.X%. be between revenue previous XX.X% to and year the full for our XX.X%

our are margin XX.X% We full to XX.X%. maintaining adjusted year of guidance EBITDAC range

was for both it Specialty. excellent half an performance by our summary, prospects. near- quarter We excited In and Ryan very long-term second remain first and

thank like With Operator? open you the that, Q&A. time, for and for to we'd your call we up

Operator

[Operator Instructions].

we question Elyse is first have The from Greenspan Fargo. Wells of

Elyse Greenspan

the is question right, updated organic XX% on to XX.X%. first My growth,

in You we will first the half, still the half but it headwinds impact them. there annualizing for are be guys the were XX.X% some sounds And the year. of of like second

guidance organic update? in the there is built or just the level of conservatism wouldn't some why be growth back stronger into half, So

Jeremiah Bickham

Elyse, for question. Hi, thanks the

just I we're a the acknowledge, good want first really very year. quite the quarter So half off, we to solid first of that a and end proud of to very had

But our half as that the portfolio a second year. otherwise, play noted we're very because portfolio, to got we seasonally, And thus, implying board, the has in why. HX our casualty expecting including remarks, boost property you the in cat And big property As we will quarter. means growth growth similarly of property and from in strong contribution less a our balanced from out property lift highest are the very HX, from this amount QX across business well. which of double-digit that's of prepared

represent we're overall, So our solid headed great another Specialty. in and HX, very organic increased about Ryan confident feel guide where can would land range, for growth very we feel year which we within we're we

Elyse Greenspan

a you out I And concentration stand pretty said guys Of quarter. there so or for -- second, would as from to a are a property staying have X QX quarters, they highest quarter? other having the the know second QX then property perspective all close next concentration higher is the Jeremiah, one

Jeremiah Bickham

we tell percentage it at highest just far doesn't of is have the property property property a So And QX the QX QX, the of only business, is highest highest the far. benefit largest. rates of does even The away it looking last next from whole story experience and attribution cat if it's contribution in weeks but not overall year the by the couple but quarter surging. of did you're because

in So like quarter we're same exact not QX makes if sense. QX counting proportionately that as growth would on a the we

Elyse Greenspan

highlighted does does quarter. sense. of How terms deals the during And just activity of guys pipeline, the out make some you That the then there? the in the other in terms of M&A potential of pipeline look, rest

Patrick Ryan

Thank Elyse. you, good. -- The it looks

robust pipeline. a it's said, I As

quite We're in new no talent opportunities out that will soon. of add some when, our benefits production serious be clients, our There's way offering are discussions it talent. significant on discussions. round We in additional knowing to could help but management and

Operator

Weston from Bloomer UBS. is question next of The

Weston Bloomer

question first on guidance. My margin the is

organic left of unchanged. impact investments in the margin year the margin within you're making or to or full wage you of expecting the what the year and around inflation of Can other back half normalization raised T&E that investments? types your talk you're You maybe just the guidance

Jeremiah Bickham

Yes. Thank you, Weston.

our quarters biggest from we're we'll right activity to is long-term with we'll quarter growth than the range likelihood at XX.X% know the at like that last year, impact up confident that the I which EBITDAC confident outsized more now, our end of the range. And regard -- pay we the and term. we long off prospects, increases said for hiring it and mean, it as the margin, end makes to the us our adjusted moment in QX, in So margin is for anything investment really a our high guidance, multiple guide

we XX% everyone, XXXX. And again, remind in to had margins just

then making again outsized but and 'XX feel of our that And But meantime, but a our So the that And biggest ramping it improvement on. from next same we're is 'XX, to hiring. relative still not hiring up still we really won't about margin scales. up. excited we're we year's And there. as very not said, maintenance this last It's goes level year, more definitely year, in making growth annualization year so as this as significantly good margin hires are scale impact have an we just is at same as of impact the you in time model ramping T&E the hiring impact about. normalized was the

Weston Bloomer

adversely deals Great. your That's of you that that seasonality M&A maybe helpful. the margin quarter, change profile in revenue? And does did EBITDAC your the X impact or either favorably or the or

Jeremiah Bickham

enough the to They're we is to to of growth people there's we in an then margin that know. investors too small at significantly size and coming tell the an as If on acquisitions needle, think acquisition impact. And the same is significant same rate. have different and generally, move let will what enough

Weston Bloomer

E&S any or commercial impact of me. know those you where of your within had they numbers, a is out for them? -- on relationship Nationwide Was can question comment with auto. your just have where that last that then And I and partnership pulled with you there

Timothy Turner

wide brokerage us Yes, gave ready have Nationwide's but depth certainly bench mentioned acquisition and business. we but really we we've absorb and Associates transportation other line We're withdrawal not change. were we auto noted employ The in transportation for a we expanding as of and and product Crouse carriers strengthened our and commercial breadth before, department from our that that to and several can a underwriting. national just that

effect. make we those can looking absorb without So any ahead changes and and we're

Weston Bloomer

something Great. impact sizing That that Are you can... all? you at

Timothy Turner

underwriting line that in and negative put any MGUs, doesn't expanded have broking. at binding and creating our transportation or product in We're looking really impact grow. growth authority to facilities, We're ability on in double-digit

Operator

question we The next from have BMO of Capital Markets. is Mike Zaremski

Michael Zaremski

of made? can't as relative is hiring. to you versus a follow-up kind pace are of excess see I any context long-term to kind you 'XX the question the My hiring average. we a the put could guess how pace see numbers there understand don't added people margins but you on because of question of have -- could to the I we long guess we in 'XX, to history many of help

trying is put just X the could than to context of of any that's of to "normal," so the you more pace you I'm around So you of kind -- like can try kind sense to margins? was hiring get points understand your did a think size up had we better impact

Jeremiah Bickham

but that and And year. won't costs the points because you, that headcount in a to over it able year. bunch, generally mover. to basis One after be whole thing in as generally we needle Mike, looking production cover it's normal years a won't will of I be X.Xx X class you at their classes you're is for sized said production So margin put as you, the normal the tell production tell right, think cohort story are we sometime relative third folks and can a this accretive the it

the come So we're 'XX. be that's won't class that 'XX confident down why weighing margin

like And at we level. the impact an of an class scale size hiring year. outsized And I onboarding just there we're somewhat if We made average if an normal in we're following size can said, be 'XX. still only hiring in hiring not wouldn't classes, --

Michael Zaremski

any change intended, kind sticking want does inflation I rates, know, or, margins, to commission no that ago about on we would contemplating months that help. to -- versus we are changing to thinking like margin, That And other well? be as don't be on just should of wage the there Okay. just X should just X things curious pun

Jeremiah Bickham

of to the immune majority commission comp on based it inflation, impacted here so On stable. rates. get doesn't our are there Those by not commission the is of because on wage and question. around inflation but plenty same way. expense are running Nothing wage folks we're salaries, Great

So wouldn't margin -- it the it's I'm that to production everyone side. made as alone the an our same heard the about number on we happening worthy us. not last talking has comp of now, have it, many impact impact as made yes, it's that you've in we've what's year on of Right references sure that margin. but is sheer hires

Michael Zaremski

gave E&S us there about into some you commentary but And also about talked marketplace, marketplace. Okay. But being E&S even flows lastly, just within good any the constraints the appetite seen, in Great. you change about you're just stats flows July, curious, deceleration acceleration or in seeing to in talk the you want you've if month? you've over anything seen any that past some

Timothy Turner

been steady. increased lines it's D&O quite some in deceleration casualty many as No, and widely in but cyber, about harden. has cat The other in lines, to measurable and noted flow but many so been just property, many public not we lines, talked continue

of the so that ability that business we're for out to win much It's well. years stronger, a very higher business can. as into the and we we capture bench we've our building And as been working it flow our get continues and to percentage to channel feel strength and of converting

Michael Zaremski

Tim, that's accounts? promise small lines what kind last my And account I they large there? or more Are casualty are of follow-up.

Timothy Turner

into where the need side No care, binding and solutions real they New as larger different problem. entity assisted care. well, we've brokerage MGUs, help, It's large for transportation, health certain public schedules continue very property difficult types but continue specialty our small as the pour entity, line York name whole sector. a and products. to our few, side entertainment mentioned. of demand And casualty across consumer and public Health our maybe it's social casualty combination in certainly habitational homes, a be to and nursing in construction Sports construction, the a Residential lastly, in channel. commercial, to of our business authorities living,

Operator

from we Cox question is Sachs. have Goldman next of The Rob

Robert Cox

seasonally noticed a bit ratio was was talent the year-over-year investments, first So adjusted down lower. when I compensation the it's good than despite the the but margin higher G&A adjusted quarter

would bit a So thought that have I would lower. little be

quarter, respect with if toughest recall correctly, I think entertainment. your comp I the was to first and travel as

can color you there provide So any there? additional is

Jeremiah Bickham

if is professional A T&E. to little Yes. a services quarter professional professional additional relative to related services. I shouldn't bit waterbed requires -- that say increased or stream in-house of some this And that of we revenue now, of they're comp then for some of prior quarters that that that decide another significantly may to Over those. is that little through -- new bit just But right into services. time a

Robert Cox

another maybe at. is state the think it. question which market of just Got on look the nearly E&S California, data on I XX% based we And of that

I digits property. personal think tick But industry be on drag of the overall positively since it premium in lines it's the might been which up November last in year. I we've months, last by net X and double seen E&S a driven suspect

is the I'm if if growth potentially positioned California see So tailwinds, year of there. advantage of those of in how wondering take they're in to you some and back the half Ryan well

Timothy Turner

very positioned well the in California. We're of state

brokerage have property are facility strengthened been benches lines. offices, We we've our acquisitions lines in ourselves in personal up deep personal there, We're binding. We've and the state casualty X what multiple and already to high-net-worth large building a finishing of in and complement last doing of California.

So for and West that to clients our we're business to and California there capture across the Coast. deliver

Robert Cox

could again, market. market cyber. but declines is stated I noted great. that I cyber recently the sneak still getting that maybe I That's pricing if think in skittish you in think Tim, I X had more And on there's --

you half question pick that my growth growing in the you I year? slowdown So to market? of up And guess the is, or expect back do are in

Timothy Turner

cyber deceleration MGUs in a performing question they're the has and country, still well positioned rate it. at But very there's binding opportunity very But is the and no high further. about Well, our on #X great a authorities, bit. which us. Wuller in a capitalizing for level. flow team slowed a can still little Miles talk there's we're It's We're

Miles? us. need still clients Our

Miles Wuller

that. Yes, I'll chime in

was rate deceleration half the relative market, change, us layers. observable first have negative of excess has and XX% last on mind this been noted year. we the achieving there modest increase Cyber to So previously, But particularly please in most in keep

new curb by helped some space. hikes that has risk substantial managers losses, price It rate adequacy. brought that investments corporate capital So

But persist however, and the per anticipating, opportunity in structural is foreseeable the the cyber despite growth the averaging where shift immense, threats future. still is overall annum remains pricing, for the industry XX%

we're that. So product and people well with on to positioned capitalize

Operator

next is from of we The Instructions]. Shields question have [Operator KBW. Meyer

Meyer Shields

Is I to we're any quarter? in bigger follow on is cyber analogous want seasonality to what there where seeing factor can. I particular property up a if cyber a in

Miles Wuller

There seasonality is Cyber. material not to

Meyer Shields

Okay. second the for I the assets in we've is Very end going seen significant quarter think will Perfect. historically Is And question, probably good this the how Jeremiah. first fiduciary go? that of from second seasonality of pickup fiduciary still quarter. to proxy a the come the for end and funds

Jeremiah Bickham

you've When following you since half year talking make about this to of you first sure question. I just I or want the are say us? understand recently, been

Meyer Shields

ebbs year, increase other year going saw first from the half that flows second just this should I year. and and same be We wondering pretty quarter big the And every to in the words. mean first whether this a also year. roughly quarter last

Jeremiah Bickham

factors. balances, will the acquire have in -- DSO. authority payment though there's we businesses Treasurer nothing into this been the to and week. a this change but to factors classify to delegated can in seeing as different that fiduciary read normal talking DSO, no There's happen. change. material of actually terms was material obviously, and different terms timing timing wholesale change to that impact about earlier fiduciary you're everything It's even normal no our mix, I and business do our balances I would When

Meyer Shields

down if back on final that a aspect that then competitors a seeing we're can, Tim. pull And specific that? normal everything we're Perfect. quarters. slow Is maybe marketing? based I question, from It you that because Are there of will opportunity saying for particular on growth T&E Okay. sounds lapping

Timothy Turner

we're I not seeing I'm any real question. on that? not sure repeat that. Could But No, pullback the understood you

Meyer Shields

just whether we're happens. that I'm and to that do when growth wondering I'm whether expensive. to going travel less for of with observably just starting some competitors and wondering much an you're entertainment opportunity there's see more Yes. say

Timothy Turner

that. seen haven't I No,

our our We're competitive actually. as as full road clients competitors pullback fact, events space In see been. any think our back in and ever I don't and ahead, it's continuously. to seeing and on attending it's speed I our We're from the underwriters

Operator

Michael have we is question next from The of Ward Citi.

Michael Ward

Was Is areas? stop in be what capabilities medical loss add. more or benefits other it might wondering looking to you

Patrick Ryan

interests It's Yes. moving plans. what benefit size the is funded us characteristics. greatly employer from the medical with of words, stop plans growing, self-insured groups rapidly of -- size, moving -- into phenomenon you I'm similar captives. was loss employers group funding of and employer know, as self-insured pooling In other to is who sure fully And other through

And heavily solution of ultimately clients believe integrated health driven be so funding numbers want self-insured strategy up captives. group is and that going our capital to their who an through to we large in are putting own by some

provide providing So these who it's a resources to process of services to brokers retail may not the have services.

team assembled the self-insured our integrated mechanism. that very to coupled innovative, through bringing ability then an skills professional I talked that about talented bring plans a the we've health of frankly, solutions, with innovative funding And and

be what we think benefit of offering. believe clients our the have a we we strategy have be we we that will to that up We'll lot believe the we're then in interested addressable market. total significantly So picking accretive cross-selling going to be that opportunities into And P&C is side.

we're very about So excited that.

Michael Ward

That's just potentially could bit we I or plan, mentioned then to -- expecting earlier still little that, XXXX a think the but savings should savings same? we timing be than helpful. maybe this, on you the And see

Jeremiah Bickham

ahead little impact schedule. the is P&L the execution, on of timing on bit material but -- a No to we're schedule the same is

saves no year. So this

full 'XX, $XX in annual which 'XX. in will then Some be million reflected and in next guidance year our the

Operator

The Barclays. next Benguigui we is question have from of Tracy

Jeremiah Bickham

you? have we do Tracy,

Tracy Benguigui

me? Can hear you

Jeremiah Bickham

now. We can

Tracy Benguigui

me? hear you Can

Jeremiah Bickham

Yes.

Tracy Benguigui

about market facultative and in side known and more market? underwriting direct you're would It transactional management Sorry. known be E&S the larger property the to great property the on brokering Are by more more your wholesale capabilities. learn you E&S or

Miles Wuller

it's Wuller. Tracy, Miles

So I'll authority delegate the start side. on

property large builders well risk, the efficiently capabilities our market, We're service So span both habitational and cap middle certainly able accounts. property, most property. renewables, as to as energy

the of largest is practice cat working out most predominantly and Our there. risks complex shared layered, some and

and we with even to say expert so our post And we've add commitments increased results I'm and Ian. continue expectations, far as recently so cat we previously that as cat pleased to teams, capacity as noted positioning week. this And as

So which we've dry great points contribution end of continued substantial have the a cat aggregate year. and the our been prudent into deploying powder,

Timothy Turner

And this believe a the the fabulous brokerage to success business I outstanding property it channel. than property job, doing the year. and We've industry-leading. quarter. high as capturing more There's a we our add, would team just capturing capabilities been the much wind. I risk that of arena leadership forward into was cat are look We percentage in a just cat is brokerage pouring on other to our big in of part difficult move our new through

Tracy Benguigui

There's layer the E&S U.K. a business which anyway? a give be Lloyd's move you like bypassing be like of may does that insurers, this new opportunity? Or some cut seen more you does a know to in have number I'd would efficient is, to new Lloyd's efforts. Excellent. on carriers, chain, including Okay. X move just distribution What business value

Timothy Turner

there's our industry points. on business. No, points, market to is our and and that they're access major is brokerage, in leader enhances I multiple Lloyd's would E&S say authorities, that obviously it the an open a net ability market in but binding the positive player strengthens London access MGUs, our

ability see So on very influence it's about, E&S X solve these challenges. I that we've been reading to a creating and as a facilities our these heavy-duty that catastrophic positive then player

Tracy Benguigui

Okay.

would you that clear, business that or would is now business seen anyway new have see? be you to Just that

Timothy Turner

of renewal new combination that strengthen It's capabilities and them. just and our enhances business a

Operator

Autonomous Tunis our delay. the Ladies of line Research. next question, We'll and with to move coming Ryan the we gentlemen, apologize for is which on from

Ryan Tunis

another do it, organic when the that really it. property capable headline your It's have cyber Just do D&O can of can businesses to cyber, your moving Obviously, rate? of on X is businesses swings? organic growth have some understand do those where the inflections. can But move needle that follow-up of big trying on notably are pricing something we we you sharp know

Jeremiah Bickham

that's products an said digits more Cyber, So of than the there's in product overall a part portfolio. portfolio. is just Ryan. terms this very of single Jeremiah, our low think which the of versus a product broadly digits that property, say cyber, significant I is category would is we've it's is In up single category, no publicly of entire which case making as -- of

apples and really. So they're oranges

as it's talking where our as for an said, an and important in Miles worth the big going of enough weapon important it about it's And arsenal sets opportunity team is on. insureds, topic because lines a lot Cyber we the there's professional D&O feature the worth -- several it's -- as expect be been a about for as on. example, will as time D&O material, it last has public quarters. do the not talking not over it's like that But goes

Miles Wuller

ways And grow Ryan, jump capacity. rate I'll in new through is incremental products, we though under find even continue to clients to pressure, that new and

materialize. did Ukraine-Russia in that A think I out important -- loss growth. achieving it's people increases were of that year. incidents. year are have been of comes for conflict There's last relatively we So was also some year-over-year. how there malware it to And lot -- been note But attach has the there looking benign are a

very environment. remains active the so risk And threat a

Ryan Tunis

property And just then this. it. think to side, trying about longevity on the of Got the

rate it type in they that understanding being say So multiple getting and the that market Or the you of some whatever as views to coming adequacy carriers may this that renewals. of generally on property need placements would year? you to take rate getting marketplace would think more their the they like are there characterize

Timothy Turner

continue The get increases. say to in. the more would come of I They're to continuing latter. losses

you XX convective the many. lot took see continuing carriers tentacles or As year, more What creating to up, going activity, last to build to carriers just not tower storm their There's shrinking. away, more prices. a conditions And it's prices million shortening their now going this we issue. wildfire as of know, we twice tightening takes $XXX see warming global and is their Most phenomenon. XX and terms capacity are raise lines, and

are storms So has I to the The balance where to market don't doing think sheets. been can area. really this damage we're anywhere in close off convective modeling near The go.

and services aspect well of needed we're And products beyond cat so our our the property. are -- wind

Ryan Tunis

the Got idea last the revenues if give on it. could but this Jeremiah. what are deals acquired completed follow-up I some of X for this, I And us missed apologize quarter? you you then just one

Jeremiah Bickham

aggregate. million in $XX was It about

Operator

appears It this have you. we questions Thank additional at no time.

remarks. So management I'd any the back for like to to closing floor pass

Patrick Ryan

very speaking We much. Well, to support again all our the you thanks you at and and in company. to questions, third Good forward your for thank interest of look end the Thank quarter. you.

Operator

this for time. disconnect teleconference participation, your may We Ladies webcast. you your today's this at lines thank and conclude you does and gentlemen, and

Ryan Specialty (RYAN) 3 Aug 232023 Q2 Earnings call transcript