On November 2, 2023, Ryan Specialty Holdings Inc (RYAN, Financial), a leading international specialty insurance firm, announced its Q3 2023 results. The company reported a significant 21.8% YoY increase in total revenue, reaching $501.9 million. This growth was primarily driven by new client wins, expanded relationships with existing clients, and contributions from recent acquisitions.
Financial Highlights
RYAN's organic revenue growth rate for the quarter was 14.7%, compared to 13.7% in the prior-year period. However, net income decreased by 46.4% YoY to $15.7 million, compared to $29.3 million in the prior-year period. This decrease was mainly due to higher income tax expenses during the period related to the legal entity reorganization associated with and subsequent to the Socius acquisition.
Adjusted EBITDAC increased by 25.8% to $147.0 million, compared to $116.8 million in the prior-year period. The company's adjusted net income increased by 30.2% to $86.6 million, compared to $66.6 million in the prior-year period. Adjusted diluted earnings per share for the third quarter of 2023 increased by 28.0% to $0.32, compared to $0.25 in the prior-year period.
Operational Overview
RYAN's total operating expenses for Q3 2023 were $432.1 million, a 23.2% increase compared to the prior-year period. This increase was primarily due to an increase in compensation and benefits expense resulting from higher compensation due to revenue growth and higher restructuring and related expenses associated with ACCELERATE 2025.
Future Outlook
RYAN is updating its full year 2023 outlook for Organic Revenue Growth Rate and for Adjusted EBITDAC Margin. The company expects the Organic Revenue Growth Rate for full year 2023 to be between 13.5% β 14.5%, compared to the company's prior guidance of 13.0% β 14.5%. The Adjusted EBITDAC Margin guidance for full year 2023 is expected to be between 29.5% β 30.0%, compared to the company's prior guidance of 29.0% β 30.0%.
About Ryan Specialty Holdings Inc (RYAN, Financial)
Ryan Specialty Holdings Inc (RYAN) is a leading international specialty insurance firm that 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.
Explore the complete 8-K earnings release (here) from Ryan Specialty Holdings Inc for further details.
