Ryan Specialty Holdings, Inc. (NYSE:RYAN) Q2 2023 Earnings Call Transcript

Miles Wuller: And Ryan, I’ll jump in that even though rate is under pressure, we continue to find ways to grow through new products, new clients and incremental capacity. So we are achieving growth. And I also think it’s important to note that it has been — last year was a relatively benign loss year. A lot of people were looking for how comes out of the Ukraine-Russia conflict that did materialize. But there are increases in attach year-over-year. There’s — there have been some malware incidents. And so the threat remains a very active risk environment.

Ryan Tunis: Got it. And then on the property side, just trying to think about the longevity of this. So would you say that like are the carriers generally coming to market and getting the rate that they think they need on property placements this year? Or would you characterize it more as there being some type of understanding that in the marketplace getting to whatever their views of rate adequacy may take multiple renewals.

Timothy Turner: I would say more of the latter. They’re continuing to get increases. The losses continue to come in. As you know, global warming is not going away, it’s creating more and more convective storm activity, the wildfire phenomenon. There’s just a lot of tentacles to this issue. And we see prices going up, we see capacity shrinking. What took 10 or 20 carriers to build $100 million tower last year, now takes twice as many. Most carriers are shortening their lines, tightening their terms and conditions and continuing to raise their prices. So I don’t think we’re anywhere near close to where the market can go. The convective storms are really doing damage to balance sheets. The modeling has been off in this area. And so we’re — our services and our products are needed well beyond the cat wind aspect of property.

Ryan Tunis: Got it. And then just one last follow-up for Jeremiah. I apologize if I missed this, but could you give us some idea of what the acquired revenues are on the 3 deals you completed this quarter?

Jeremiah Bickham: It was about $40 million in aggregate.

Operator: Thank you. It appears we have no additional questions at this time. So I’d like to pass the floor back to management for any closing remarks.

Patrick Ryan: Well, thank you all very much. Good questions, and thanks for your support and interest in our company. We look forward to speaking to you again at the end of the third quarter. Thank you.

Operator: Ladies and gentlemen, this does conclude today’s teleconference and webcast. We thank you for your participation, and you may disconnect your lines at this time.