Ryan Specialty Holdings Inc. on Thursday reported revenue of $552 million for the first quarter, up 20.6% from last year’s first quarter, as the excess and surplus lines insurance market continued to attract business.
On an organic basis, which excludes the impact of mergers and acquisitions among other things, revenue grew 13.7% compared to 13.4% in the year-ago period.
The specialized intermediary, which has wholesale broking and underwriting operations, reported net income of $40.7 million for the quarter, up 11.6% from the same period last year.
Patrick G., Founder, Chairman and Chief Executive Officer of Ryan Specialties. Ryan said during a call with analysts that property insurance revenue “remains very strong” and casualty coverage was a significant contributor to the uptick and growth seen.
Company president Timothy W. Property coverage will likely remain a strong growth driver as weather predictions call for a higher than average number of hurricanes and named tropical storms, Turner said.
While property rates, which had risen significantly in previous quarters, are stabilizing, the cost of casualty coverage is rising and rising due to rising court judgments and settlements or “social inflation,” Mr. Turner said.
The company is earning more revenue from construction coverage, he said.
“We are capturing a lot more construction business across the board, especially residential construction. “Infrastructure projects have picked up pace, and the lag time from bidding to binding has shortened, so we are very optimistic for a great year in construction,” he said.
He also said that directors and officers’ liability insurance rates have decreased.
“I think we are going through a period of pain. “We are seeing some softness there,” he said.
