RYAN SPECIALTY HOLDINGS, INC. Q4 FY2024 earnings call

• 2024 was an outstanding year with strong organic revenue growth, surpassing $2.5 billion in annual revenue, up 21% YOY. • Executed seven M&A acquisitions in 2024 with trailing revenue over $265 million, including Velocity Underwriting Managers. • Completed ACCELERATE 2025 program, enhancing operating efficiency and flexibility. • Board approved a 9% increase in quarterly dividend. • Partnership with FM Global, with FM Global expected to acquire a majority stake in Velocity Specialty Insurance Company and Ryan Specialty acquiring a 9.9% stake in VSIC.

For the quarter, organic revenue growth was 11%, with full year 2024 revenues surpassing $2.5 billion, up 21% year-over-year driven by organic growth of 12.8% and M&A. Adjusted EBITDAC grew 30% to $811 million, with adjusted EBITDAC margin expanding 210 basis points to 32.2%. Adjusted earnings per share grew 30% to $1.79. Velocity Delegated Authority makes up nearly 45% of revenue.

• Full year 2025 organic revenue growth guided to be between 11% and 13%. • Adjusted EBITDAC margin for 2025 guided to be between 32.5% and 33.5%. • Aiming for 35% adjusted EBITDAC margin by the end of 2027. • Anticipate continued investment in the business to support long-term growth.

Q: What's the outlook for organic growth and property?

A: Janice and Tim discussed that property pricing is soft near term but strong flow and market share gains offset this. Casualty continues to be a strong contributor, and M&A from prior years will bolster growth.

Q: Can you expand on margin and investments?

A: Janice and Jeremiah explained that margin growth for 2025 is driven by M&A, scaling, and headwinds, with investments in talent, operations, and technology to support long-term growth.

Q: What's the opportunity in personal lines?

A: Tim mentioned strong performance in high net worth personal lines, a de novo MGU in London, and a joint venture with AIG and PCS as promising opportunities.