Ryan Specialty matches Q1 earnings forecast as organic growth accelerates to 12.9%

Organic growth of 12.9% in Q1 2025 Adjusted Ebitdac increases 27.5% YoY to $200.5 million Adjusted Ebitdac margin climbs 60 bps YoY to 29.1% Adjusted diluted EPS of $0.39 matches Wall Street consensus Net commissions and fees rise 25.7% YoY to $676.1 million

By Chris Munro

May 1 - (The Insurer) – Ryan Specialty ended Q1 2025 with organic growth of 12.9% – an acceleration from 2024’s fourth quarter but a slowdown when compared with the prior-year period – and adjusted diluted earnings per share of $0.39 that exactly matched the consensus forecast.

The wholesaler’s 12.9% organic growth was an improvement when compared with Q4 2024’s 11.0%, but down on the 13.7% that was booked in the first quarter of 2024.

Ryan Specialty’s adjusted Ebitdac for 2025’s first quarter was $200.5 million, up 27.5% year on year from Q1 2024’s $157.2 million.

The increase, Ryan Specialty said, “was driven primarily by solid revenue growth, partially offset by higher adjusted compensation and benefits expense, as well as higher adjusted general and administrative expense.”

Chicago, Illinois-based Ryan Specialty’s adjusted Ebitdac margin for the first three months of 2025 stood at 29.1%, up from the 28.5% booked in Q1 2024.

The company ended the first quarter of 2025 with adjusted diluted earnings per share of $0.39, up 11.4% from the prior-year period’s $0.35.

The $0.39 result for Q1 2025 was a match on the consensus forecast of 13 analysts as compiled by S&P Capital IQ.

Ryan Specialty’s total revenue for the first three months of 2025 totaled $690.2 million, up 25.0% year on year.

As the company explained, that increase was driven primarily by its “continued solid organic growth,” 12.9% of which the wholesaler said was fueled by new client wins and expanded relationships with existing clients, along with continued expansion of the E&S market.

Growth was also supported by revenue from acquisitions completed within the trailing 12 months ended March 31, 2025, along with changes in contingent commissions and the impact of foreign exchange rates.

Ryan Specialty said it experienced growth across the majority of its casualty lines in Q1 2025, and “modest growth” in its property segment.

Net commissions and fees across its operations totaled $676.1 million in Q1 2025, up 25.7% from the prior-year period’s $537.9 million.

Wholesale brokerage revenue reached $360.8 million in 2025’s first quarter, compared with $323.4 million in Q1 2024, while binding authorities revenue grew to $102.0 million from the prior-year period’s $88.6 million.

Underwriting management revenue increased to $213.4 million from Q1 2024’s $125.8 million.

The company swung to a net loss of $4.4 million for the three months to March 31, 2025, compared with net income of $40.7 million in the prior-year period.

Adjusted net income for 2025’s first quarter was $107.8 million, up 13.0% year on year from Q1 2024’s $95.4 million.

“It was a strong start to 2025 for Ryan Specialty as we continue to deliver the innovative solutions our clients and trading partners have come to expect,” said Pat Ryan, Ryan Specialty’s founder and executive chairman.

“We picked up nicely from the close of 2024, leveraging our differentiated talent to win additional new business and gain market share,” added Tim Turner, Ryan Specialty’s CEO.

“We remain confident that we will be able to navigate through the current challenging macro environment given our diverse product and services offering, durable business model, and the resiliency of the specialty and E&S markets.

“As a result, we continue to believe we have a tremendous runway to deliver sustainable growth over the long term, and to create additional value for our shareholders,” Turner added.