Ryan Specialty Holdings Inc. reported a 14.9% increase in fourth-quarter revenue to $435 million and expects a strong 2023, despite an uncertain economy.
The Chicago-based wholesaler and insurance executive posted organic revenue growth of 10.3% for the quarter, compared with 15.4% in the year-ago period.
Net income increased to $45.8 million, an increase of 54.6% from $29.6 million for the prior year.
For the year, revenue increased 20.4%, to $1.73 billion in 2022, compared to $1.43 billion in 2021. The organic growth rate was 16.4%, compared to 22.4% for 2021. Net income increased 188, 3% year-over-year to $163.3 million, compared to $56.6 million last year.
“We see continued solid growth in the business. Although there is increased macro uncertainty, the complexity of risks continues to increase,” said Patrick G. Ryan, RSG̵7;s Chairman and CEO.
“Looking ahead, I am confident that 2023 will be another strong year for our company” with sustained growth and a flexible business model that allows it to pivot quickly in response to changing market conditions.
Discussing specific lines, Ryan Specialty President Tim Turner said that real estate “continues to experience a historically tough market, as prices rose significantly and capacity tightened. We are seeing a large volume of new business flowing into the non-permitted market and remain” very encouraged” by the properties’ potential.
Mr Turner said major events such as Hurricane Ian, winter storms and other climate events, as well as a tougher reinsurance renewal process, had led to less capacity and higher prices and increasing demand for insurance.
Cyber performed well in the fourth quarter and for the year, and while Ryan continues to see modest rate hikes, “we think there’s plenty of runway” for the company regardless of near-term price trends.
Ryan’s transportation practice, particularly in trucking, continues to see a significant flow of business, Mr. Turner.