Ryan Specialty Signs Definitive Agreement to Acquire Velocity Risk Underwriters
Ryan Specialty (NYSE: RYAN) has announced a definitive agreement to acquire Velocity Risk Underwriters, a Nashville-based managing general underwriter (MGU), from Oaktree Capital Management for $525 million in upfront cash. Velocity specializes in first-party insurance coverage for catastrophe-exposed properties, focusing on US property catastrophe risks such as named storms, earthquakes, and tornados.
As part of the transaction, Velocity's E&S carrier, Velocity Specialty Insurance Company (VSIC), will be acquired by FM, a commercial property mutual insurance company. Velocity generated approximately $81 million in operating revenue for the 12 months ended December 31, 2024. The acquisition is expected to close in early 2025 and will strengthen Ryan Specialty's property catastrophe portfolio and delegated authority platform.
Ryan Specialty (NYSE: RYAN) ha annunciato un accordo definitivo per acquisire Velocity Risk Underwriters, un general underwriter (MGU) con sede a Nashville, da Oaktree Capital Management per 525 milioni di dollari in contante anticipato. Velocity si specializza nella copertura assicurativa di primo grado per proprietà esposte a catastrofi, concentrandosi sui rischi da catastrofi immobiliari negli Stati Uniti, come tempeste di nome, terremoti e tornado.
Come parte della transazione, il carrier E&S di Velocity, Velocity Specialty Insurance Company (VSIC), verrà acquisito da FM, una compagnia di assicurazione mutua per proprietà commerciali. Velocity ha generato circa 81 milioni di dollari in ricavi operativi per i 12 mesi terminati il 31 dicembre 2024. Si prevede che l'acquisizione si concluda all'inizio del 2025 e rafforzerà il portafoglio di catastrofi immobiliari di Ryan Specialty e la piattaforma di autorità delegata.
Ryan Specialty (NYSE: RYAN) ha anunciado un acuerdo definitivo para adquirir Velocity Risk Underwriters, un general underwriter (MGU) con sede en Nashville, de Oaktree Capital Management por 525 millones de dólares en efectivo por adelantado. Velocity se especializa en cobertura de seguros de primer nivel para propiedades expuestas a catástrofes, enfocándose en los riesgos de catástrofes inmobiliarias en EE.UU., como tormentas nombradas, terremotos y tornados.
Como parte de la transacción, el carrier E&S de Velocity, Velocity Specialty Insurance Company (VSIC), será adquirido por FM, una compañía de seguros mutuos de propiedad comercial. Velocity generó aproximadamente 81 millones de dólares en ingresos operativos durante los 12 meses finalizados el 31 de diciembre de 2024. Se espera que la adquisición se cierre a principios de 2025 y fortalecerá el portafolio de catástrofes inmobiliarias de Ryan Specialty y la plataforma de autoridad delegada.
Ryan Specialty (NYSE: RYAN)는 Velocity Risk Underwriters, 내슈빌에 본사를 둔 관리 일반 보험사(MGU) 를 Oaktree Capital Management로부터 5억 2500만 달러의 현금으로 인수하기로 확정된 계약을 발표했습니다. Velocity는 지정된 폭풍, 지진, 그리고 토네이도와 같은 미국의 부동산 재해 위험에 초점을 맞추어 재해 노출 자산에 대한 1차 보험 보장을 전문으로 합니다.
거래의 일환으로 Velocity의 E&S 운송사인 Velocity Specialty Insurance Company (VSIC)는 상업 재산 상호 보험 회사인 FM에 인수될 것입니다. Velocity는 2024년 12월 31일에 종료되는 12개월 동안 약 8100만 달러의 운영 수익을 창출했습니다. 이 인수는 2025년 초에 마감될 것으로 예상되며, Ryan Specialty의 재산 재해 포트폴리오와 위임된 권한 플랫폼을 강화할 것입니다.
Ryan Specialty (NYSE: RYAN) a annoncé un accord définitif pour acquérir Velocity Risk Underwriters, un général managing underwriter (MGU) basé à Nashville, de Oaktree Capital Management pour 525 millions de dollars en espèces. Velocity se spécialise dans la couverture d'assurance de premier recours pour des biens exposés aux catastrophes, en se concentrant sur les risques immobiliers de catastrophes aux États-Unis tels que les tempêtes nommées, les tremblements de terre et les tornades.
Dans le cadre de la transaction, le transporteur E&S de Velocity, la Velocity Specialty Insurance Company (VSIC), sera acquis par FM, une compagnie d'assurance mutuelle de biens commerciaux. Velocity a généré environ 81 millions de dollars de revenus d'exploitation pour les 12 mois se terminant le 31 décembre 2024. L'acquisition devrait être finalisée début 2025 et renforcera le portefeuille de catastrophes immobilières de Ryan Specialty et la plateforme d'autorité déléguée.
Ryan Specialty (NYSE: RYAN) hat eine definitive Vereinbarung zur Übernahme von Velocity Risk Underwriters, einem in Nashville ansässigen Generalunternehmer (MGU), von Oaktree Capital Management für 525 Millionen Dollar in Barzahlung bekannt gegeben. Velocity spezialisiert sich auf Erstversicherungsdeckung für katastrophenanfällige Immobilien, mit einem Fokus auf Immobilienkatastrophenrisiken in den USA, wie benannte Stürme, Erdbeben und Tornados.
Im Rahmen der Transaktion wird Velocitys E&S-Träger, die Velocity Specialty Insurance Company (VSIC), von FM, einer gewerblichen Sachversicherungsgesellschaft, übernommen. Velocity erzielte im Zeitraum von 12 Monaten bis zum 31. Dezember 2024 einen Betriebserlös von etwa 81 Millionen Dollar. Die Übernahme wird voraussichtlich Anfang 2025 abgeschlossen und wird das Portfolio von Ryan Specialty im Bereich Immobilienkatastrophen und die Plattform der delegierten Autorität stärken.
- Acquisition price of $525 million represents significant business expansion
- Target company generates $81 million in operating revenue
- Enhances Ryan Specialty's property catastrophe portfolio and market presence
- Expands geographical footprint particularly in Florida, Texas, and Southeast
- Adds technological and data analytics capabilities to existing operations
- Substantial cash outlay of $525 million may impact short-term liquidity
- Integration risks associated with merging operations and systems
Insights
The $525 million acquisition of Velocity Risk Underwriters represents a strategic expansion of Ryan Specialty's underwriting capabilities in the catastrophe insurance sector. With Velocity's $81 million in operating revenue, the acquisition multiple of approximately 6.5x revenue suggests a premium valuation, reflecting the strategic importance of catastrophe risk expertise in today's climate-sensitive market.
The deal structure is particularly noteworthy - by separating Velocity's MGU operations from its E&S carrier (VSIC) and having FM acquire the latter, Ryan Specialty maintains focus on fee-based revenues while avoiding capital-intensive insurance operations. This arrangement optimizes capital efficiency while strengthening distribution partnerships with key carriers.
The transaction enhances Ryan Specialty's competitive position in catastrophe-exposed property coverage, particularly in high-growth markets like Florida and Texas where natural disaster risks are driving increased demand for specialized insurance solutions.
The strategic significance of this acquisition lies in its timing and market positioning. With climate change intensifying natural disasters, the catastrophe insurance market is experiencing hardening rates and capacity constraints. Velocity's technological capabilities in risk assessment and portfolio management are important differentiators in this environment.
The deal strengthens Ryan Specialty's market position in three key ways:
- Expands catastrophe underwriting expertise in high-demand regions
- Enhances tech-driven risk assessment capabilities
- Deepens relationships with major carriers through the FM partnership
The financial structure of this acquisition demonstrates sophisticated capital allocation strategy. By acquiring only the MGU operations, Ryan Specialty maintains its asset-light business model while gaining valuable revenue streams. The $81 million operating revenue contribution represents meaningful growth potential, especially considering the rising demand for catastrophe coverage.
The separation of VSIC to FM creates a unique three-way strategic alignment that could drive additional revenue synergies. The deal's early 2025 expected closing timeline suggests minimal regulatory hurdles, though integration execution will be key to realizing value. For investors, this acquisition reinforces Ryan Specialty's position as a leading specialty insurance platform with strong organic and inorganic growth potential.
Velocity was founded in 2015 to focus on US property catastrophe risks, providing hard to secure coverage for perils such as named storm, earthquake, and tornado and hail, with an emphasis on middle market and small to medium commercial businesses. Geographically, Velocity has a national footprint with a particularly strong presence in
As a component of this transaction, and subject to regulatory approval, Velocity’s wholly owned E&S carrier, Velocity Specialty Insurance Company (“VSIC”) will be acquired by FM, a leading commercial property mutual insurance company representing many of the world’s largest organizations, including one of every four Fortune 500 companies.
Remarking on this acquisition, Miles Wuller, President and CEO of Ryan Specialty Underwriting Managers, said, “Adding Velocity to our property catastrophe portfolio significantly enhances our ability to serve our wholesale clients and further solidifies Ryan Specialty Underwriting Managers as the preeminent delegated authority platform in the country. This talented team has developed robust technology, portfolio management, and data analytics capabilities that augment their innovative underwriting and claims approach. We are looking forward to having the Velocity team as a part of the Ryan Specialty family.”
Malcolm Roberts, Chairman and CEO of FM, commented, “VSIC’s focus on property insurance and expertise in understanding the new risk landscape that many businesses face aligns perfectly with FM’s mission and may eventually allow us to provide our clients with an even broader suite of products and solutions to meet risks today and in the future. We are excited to welcome VSIC to the FM family and strengthen our strategic relationship with Ryan Specialty.”
Phil Bowie, Executive Vice Chairman of Velocity, added, “We are thrilled about the synergy of our industry-leading property underwriting and claims capability with the Ryan Specialty organization and with FM acquiring our E&S balance sheet. With this strategic transaction, Velocity gains expanded access to markets and additional resources to continue on its growth journey. With our E&S balance sheet becoming part of an incredibly well-rated and capitalized entity in FM, it further enhances the security and capacity we bring to the wholesale market.”
Jake Rothfuss, CEO of Velocity, added, “Through this transaction, Velocity will continue delivering exceptional service to brokers, customers, and capital sources. Ryan Specialty maintains the same foundational values and innovative culture that we have created and live every day at Velocity. The combination of these incredible organizations will allow our teammates to further their skills and provides the opportunity for Velocity to accelerate the growth of our managing general underwriter to even greater heights. Joining Ryan Specialty is the right home for the future of our team; we’re all looking forward to our future together.”
“We are proud to have partnered with Phil, Jake, and the entire Velocity team and wish them success in the next chapter of the Company’s growth,” said Greg Share, Managing Director of Oaktree.
Velocity generated approximately
The acquisition of Velocity is expected to close in early 2025.
Insurance Advisory Partners LLC and Howden Capital Markets & Advisory served as financial advisors to Velocity and Oaktree, and Debevoise & Plimpton LLP served as legal counsel to Velocity and Oaktree. J.P. Morgan Securities LLC served as exclusive financial advisor to Ryan Specialty and Sidley Austin LLP served as legal counsel to Ryan Specialty. Willkie Farr & Gallagher LLP served as legal counsel to FM.
About Ryan Specialty
Founded in 2010, Ryan Specialty is a service provider of specialty products and solutions for insurance brokers, agents, and carriers. Ryan Specialty provides distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter with delegated authority from insurance carriers. Our mission is to provide industry-leading innovative specialty insurance solutions for insurance brokers, agents, and carriers. Learn more at ryanspecialty.com.
About FM
Established nearly two centuries ago, FM is a leading mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its policyholder-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every four Fortune 500 companies. They work with FM to better understand the hazards that can impact their business continuity to make cost-effective risk management decisions, combining property loss prevention with insurance protection. Learn more at FM.com.
About Velocity
Velocity is a leading provider of risk management solutions with a focus on delivering tailored specialty insurance coverage for complex commercial exposures. Through strategic partnerships and a commitment to innovation, Velocity strives to offer industry-leading service and risk solutions for its clients and partners. Velocity Insurance Holding Company Inc., is the holding company for Velocity Risk Underwriters, LLC, a tech-enabled E&S specialty property insurance managing general agent, Velocity Specialty Insurance Company (“VSIC”), a rated E&S insurance carrier licensed in all 50 states, and Velocity Claims LLC, a leading claims management service. The firm has over 150 employees across five global locations:
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that involve substantial risks and uncertainties and that reflect the Company’s current expectations and projections with respect to, among other things, its plans, objectives, and business. These forward-looking statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the proposed transaction and opportunities related thereto, including Velocity’s ability to meet certain performance targets or expectations, as well as the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to risks and uncertainties, known and unknown, that may cause actual results to differ materially from those that the Company expected, including potential adverse reactions or competitive responses to our acquisitions and other transactions, the possibility that the anticipated benefits of our acquisitions are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of acquired assets and operations, the occurrence of any event, change or other circumstances that could give rise to the termination of the US Assure acquisition agreement, risks related to disruption of management time from ongoing business operations due to the transaction and our ability to access or obtain debt financing on terms satisfactory to us or at all. For more detail on the risk factors that may affect the Company’s results, see the section entitled “Risk Factors” in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), and in other documents filed with, or furnished to, the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Given these factors, as well as other variables that may affect the Company’s operating results, you are cautioned not to place undue reliance on these forward-looking statements, not to assume that past financial performance will be a reliable indicator of future performance, and not to use historical trends to anticipate results or trends in future periods. The forward-looking statements included in this press release relate only to events as of the date hereof. The Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this report, whether as a result of new information, future events, changes in assumptions or otherwise.
1 Revenue attributable to the targeted to be acquired business for the trailing twelve-month period ending December 31, 2024. This figure has not been audited.
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Alice Phillips Topping
Chief Marketing & Communications Officer
Ryan Specialty
Alice.Topping@ryanspecialty.com
(312) 635-5976
Investor Relations
Nicholas Mezick
Director, Investor Relations
Ryan Specialty
IR@ryanspecialty.com
(312) 784-6152
Source: Ryan Specialty
FAQ
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