Ryan Specialty Group (RYAN) to Acquire Velocity Risk Underwriters

Ryan Specialty (NYSE: RYAN), a leading international specialty insurance firm, is pleased to announce it has signed a definitive agreement to acquire Velocity Risk Underwriters, LLC (“Velocity”) from funds managed by Oaktree Capital Management, L.P. (“Oaktree”). Based in Nashville, Tennessee, Velocity is a leading managing general underwriter (“MGU”) providing first-party insurance coverage for catastrophe exposed properties and will become a part of the Ryan Specialty Underwriting Managers division of Ryan Specialty.

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 Florida, Texas, and the Southeast.

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 $81 million of operating revenue for the 12 months ended December 31, 20241 and is to be acquired by Ryan Specialty for an upfront cash consideration of $525 million, subject to customary purchase price adjustments. The upfront cash consideration is exclusive of VSIC and any earnout consideration.

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.

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