Ryan Specialty Holdings, Inc. Q4 FY2025 earnings call

• Pat Ryan noted 2025 was a strong year despite industry headwinds, with organic growth of 6.6% in Q4 and full year revenue over $3B up 21% YOY. - Tim Turner discussed performance across specialties: property had challenges but long-term optimism, casualty had strong year with some moderation, and delegated authority strategy as key differentiator. - Janice Hamilton talked about Q4 and full year financials, margin impact from investments, dividend increase, share repurchase program, and Project Empower restructuring program, including streamlining operations, optimizing scale, accelerating data/tech strategies, and enhancing efficiencies across specialties.

For the quarter, Ryan Specialty delivered organic growth of 6.6%. For the full year, revenues surpassed $3 billion, up 21% year-over-year, driven by organic growth of 10.1% and M&A. The delegated authority business generated meaningful revenue, with delegated authority revenue doubling to $1.4 billion over 2 years, now reflecting 47% of total. The wholesale brokerage specialty showed resilience, while the property business faced challenges in pricing but had long-term optimism. The casualty practice had a strong year with some moderation, and the delegated authority specialties, including binding authority and underwriting management, performed well.

• Guiding to organic revenue growth in the high single digits for 2026. - Adjusted EBITDAC margin expected to be flat to moderately down in 2026. - Q1 expected to be the strongest quarter for organic growth in 2026, aided by Ryan Re.

• Property pricing softening. - Casualty growth moderation. - Macroeconomic uncertainty. - Competition in certain casualty lines. - Impact of AI on brokerage sector (though Ryan sees AI as ally but emphasizes specialty skills and relationships are key).

Q: Elyse Greenspan asked about the organic growth guide and AI impacts.

A: Janice Hamilton and Tim Turner discussed property pricing trends and casualty opportunities, while Pat Ryan saw AI as an ally to improve client service.

Q: Taylor Scott asked about share repurchase and M&A environment.

A: Patrick Ryan and Janice Hamilton talked about share repurchase as a good investment for shareholders and M&A as top capital allocation priority with discipline.

Q: Brian Meredith asked about client demand and longer-term growth.

A: Timothy Turner and Janice Hamilton discussed client coverage needs and talent investments contributing to growth.

Q: Meyer Shields asked about margin guidance and longer-term potential.

A: Janice Hamilton said 35% margin target is realistic but no timeline.

Q: Andrew Kligerman asked about contingent commissions.

A: Patrick Ryan and Janice Hamilton discussed contingent commissions being stable in 2026.

Q: Robert Cox asked about E&S market growth and casualty competition.

A: Timothy Turner and Janice Hamilton talked about E&S market outpacing admitted market and casualty competition in certain areas.

Q: Matthew Heimermann asked about wholesale growth and delegated underwriting.

A: Timothy Turner and Miles Wuller discussed wholesale growth attributed to property and delegated underwriting opportunities