Ryan Specialty (NYSE:RYAN) executives emphasized resilience in a rapidly shifting insurance market as the specialty insurance services firm reported fourth-quarter and full-year 2025 results and outlined expectations for 2026. Management pointed to property market volatility, moderating casualty trends, and ongoing project delays in certain construction-related lines as key headwinds, while highlighting continued growth, an expanded delegated authority platform, and new capital allocation actions.
2025 results: $3 billion-plus revenue, continued organic growth
Founder and Executive Chairman Pat Ryan said 2025 was a “strong year” despite “significant headwinds” across the industry. For the fourth quarter, the company delivered organic revenue growth of 6.6%. For the full year, Ryan Specialty surpassed $3 billion in revenue, up 21% year-over-year, driven by 10.1% organic revenue growth and contributions from acquisitions.
Market backdrop: property pricing declines and shifting competition
Pat Ryan described the current insurance cycle as unusually volatile, saying it was “harder for longer on the way up” and “much faster on the way down,” especially in property. CEO Tim Turner said the fourth quarter was “particularly challenging” in property as pricing declines intensified through the quarter. He highlighted that in December, on certain large accounts, pricing was down 25% to 35%. Turner also noted pockets where admitted carriers stepped back into certain segments, particularly smaller accounts.
Given continued pricing softening, January 1 reinsurance renewals, and views of rate adequacy, Turner said the company expects the possibility of similar property pricing declines in 2026. Management said the near-term focus is on competing head-to-head to win business and returning the property segment to growth “as soon as the market allows,” while maintaining longer-term optimism due to catastrophe exposure trends and continued demand for E&S solutions.
In casualty, Turner described a favorable overall year, with significant price increases—often exceeding 10%—in high-hazard lines such as transportation, healthcare, social and human services, and habitational. He also noted continued pricing pressure in professional lines, but said the team “significantly outperformed the market.” At the same time, Turner said carrier tone has become more constructive in casualty, which is increasing competition and leading to slight moderation in some pockets. He said Ryan Specialty expects strong, yet moderating, casualty growth in 2026.
Diversification and delegated authority expansion
Executives repeatedly pointed to diversification as a strategic buffer through market cycles. Pat Ryan said the company’s investments in delegated authority—binding authority and underwriting management—were designed to deepen specialty presence and help balance earnings, including through contingent commissions tied to underwriting performance.
Pat Ryan said delegated authority revenue has doubled over the last two years to $1.4 billion, representing 47% of total revenue, compared with $700 million and 35% two years ago. He also said Ryan Specialty has grown platform products by 50% to more than 300 and expanded internationally to 24 offices from six in 2023.
Turner said delegated authority now manages north of $10 billion in premium across more than 300 products and noted that Business Insurance has recognized the company as the largest delegated authority platform. Within underwriting management, Turner highlighted strong performance in transactional liability, casualty, and transportation, as well as growth at Velocity, described as a “Tier One property cat MGU.” He also cited near-term pressure at the builder’s risk MGU US Assure due to project delays, while reiterating confidence in longer-term opportunity.
On Ryan Re, Turner said the company executed on its strategic partnership with Nationwide on the Markel reinsurance book and delivered a “very strong January 1 renewal season.”
Empower restructuring program: charges through 2028, savings in 2029
As diversification and acquisition-driven expansion increased complexity, management announced a multi-year restructuring initiative. Pat Ryan said Ryan Specialty is launching Empower, a three-year program aimed at improving efficiency, especially within delegated authority, and creating “headroom” for additional investment. Hamilton described the program’s objectives as streamlining broking and underwriting operations, eliminating redundancies, accelerating data and technology strategies through a unified ecosystem, and enhancing efficiencies across specialties.
Management said the company anticipates a cumulative special charge of approximately $160 million through 2028 and expects approximately $80 million of annual savings in 2029. Hamilton said the savings are expected to ramp over time and should support the company’s goal of modest margin expansion in most years, while retaining flexibility to invest in talent, technology, and growth.
Capital allocation: dividend increase and first share repurchase authorization
Ryan Specialty also announced new capital return actions. Hamilton said the board approved an 8% increase in the regular quarterly dividend for Class A stockholders to $0.13 per share. In addition, Pat Ryan announced the board authorized the company’s first $300 million share repurchase program, describing it as a response to what management views as a “meaningful dislocation” between valuation and confidence in the business outlook.
Executives emphasized that share repurchases do not change the company’s stated commitment to M&A as its top capital allocation priority. Pat Ryan said the repurchase program “does not, in any sense, diminish our commitment and enthusiasm for M&A,” while also calling the current share price environment an opportunity to improve shareholder returns.
On the balance sheet, Hamilton said Ryan Specialty ended the quarter at 3.2x total net leverage on a credit basis and remains willing to temporarily go above its “comfort corridor” of three to four times for compelling acquisitions. She also said the adjusted effective tax rate was 26% for both the quarter and full year, and the company expects a similar rate in 2026. Based on current interest rates and debt levels, Hamilton said Ryan Specialty expects GAAP interest expense, net of interest income, of approximately $210 million in 2026, including $55 million in the first quarter.
Looking ahead, management guided to high single-digit organic revenue growth in 2026 and an adjusted EBITDA margin that is flat to moderately down versus 2025, citing property pricing pressures, moderating casualty growth, macro uncertainty, lower fiduciary investment income from lower interest rates, stable contingent commissions following an “exceptional 2025,” higher healthcare and benefit costs, and the absorption of late-2025 talent and technology investments.
About Ryan Specialty (NYSE:RYAN)
Ryan Specialty Group, Inc (NYSE: RYAN) is a global specialty insurance and reinsurance platform that partners with a network of insurers and reinsurers to deliver tailored risk solutions. The company focuses on complex and large-scale risks across multiple industry sectors, leveraging its underwriting expertise to structure coverage programs that meet clients’ unique needs.
Ryan Specialty’s core offerings span a diverse range of specialty lines, including casualty, property, professional liability, marine and energy, program administration, and sports and entertainment.
