Ryan Specialty Acquires Velocity Risk Underwriters: A Strategic Move in Specialty Insurance
In a significant development in the specialty insurance sector, Ryan Specialty has successfully completed the acquisition of Velocity Risk Underwriters, LLC from funds managed by Oaktree Capital Management, L.P. This strategic move marks a notable expansion for Ryan Specialty, enhancing its capabilities in the wholesale insurance market.
Understanding Velocity Risk Underwriters
Velocity Risk Underwriters, based in Nashville, Tennessee, operates as a managing general underwriter (MGU). The company specializes in providing first-party insurance coverage for properties that are particularly exposed to catastrophic risks. This acquisition allows Ryan Specialty to bolster its offerings in a sector that is increasingly critical in the face of rising natural disasters and climate-related events.
Strategic Expansion for Ryan Specialty
According to Miles Wuller, CEO of Ryan Specialty Underwriting Managers, the acquisition of Velocity Risk Underwriters will significantly enhance the company’s wholesale client services. Velocity will be integrated into the Ryan Specialty Underwriting Managers division, which is expected to streamline operations and broaden the range of services offered to clients.
The acquisition price was set at $525 million in cash, a figure that underscores the value and potential of Velocity Risk Underwriters in the current insurance landscape. This deal was previously reported in early January 2025, reflecting the ongoing trend of consolidation in the insurance industry.
Ryan Specialty’s Growth Trajectory
Ryan Specialty, a publicly traded company headquartered in Chicago, has been actively expanding its footprint in both the U.S. and European markets. In 2024 alone, the firm engaged in several acquisitions, including the notable purchase of London-based Paradiso Risks as part of its acquisition of Castel Underwriting Agencies in May. These moves are indicative of Ryan Specialty’s aggressive growth strategy aimed at enhancing its market position and service offerings.
Related Transactions: Velocity Specialty Insurance Co.
In a related transaction that is currently pending regulatory approval, Velocity’s excess and surplus (E&S) carrier, Velocity Specialty Insurance Co. (VSIC), is set to be acquired by FM Global, a Rhode Island-based global commercial property insurance company. This acquisition will enable FM to expand its reach into the E&S property insurance market, responding to the increasing demand for coverage against emerging risks.
Malcolm Roberts, chairman and CEO of FM, emphasized the growing need for E&S coverage, particularly as businesses face an uptick in secondary perils and other risks that traditional insurance often fails to cover. This highlights a broader trend in the insurance industry where companies are adapting to the evolving risk landscape.
The Future of Specialty Insurance
The acquisition of Velocity Risk Underwriters by Ryan Specialty is a clear indication of the shifting dynamics within the specialty insurance market. As businesses increasingly seek comprehensive coverage for unique and high-risk scenarios, the demand for specialized insurance solutions is expected to grow. This trend is likely to drive further consolidation and innovation within the industry.
In summary, Ryan Specialty’s acquisition of Velocity Risk Underwriters not only strengthens its market position but also reflects a strategic response to the changing needs of clients in an increasingly volatile risk environment. As the insurance landscape continues to evolve, stakeholders will need to stay informed about developments that could impact their coverage options and business strategies.
For more insights into the specialty insurance market and emerging trends, consider visiting authoritative sources such as Insurance Journal and AM Best. These platforms provide in-depth analysis and updates on industry movements and regulatory changes.