Ryan Specialty Group Holdings (RSG) has published its results for the first quarter ended March 31, 2022, and revealed strong performance driven by a focus on its “winning formula for success.”
For Q1 2022, the company’s total revenue grew 24.2% year-over-year to $386.9 million, up from $311.5 million in Q1 2021. According to RSG, this increase was mainly due to “strong” organic revenue growth of 20.1%, which was driven by new client wins, expanded relationships with existing clients, overall expansion of the E&S market, and premium rate increases. Revenue from recent acquisitions completed in Q4 2021 also contributed to the number, RSG said.
Net income for RSG in Q1 2022 was $18.1 million, compared to a net loss of $3.8 million in the prior-year period. The company highlighted its year-over-year revenue growth and the reduction in non-operating losses incurred in Q1 2021 - which were driven by a $12.6 million change in fair value of the embedded derivatives on RSG’s Redeemable Preferred Units that did not recur in the first quarter of 2022.
Meanwhile, the company’s adjusted EBITDAC (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter was $107.3 million, which grew 13.6% from $94.4 million in the prior-year period.
RSG also gave its full-year outlook for 2022, placing its organic growth revenue growth rate for the full year at the 13.5% – 15.5% range, compared to its previous guidance range of 13.0% - 15.0%. It also revealed its adjusted EBITDAC margin guidance range for the full year 2022 stands at 28.5% - 30.0%, up from its prior guidance range of 28.0% - 30.0%.
“We had an excellent start to 2022 as we continued to capitalize on opportunities presented by the ongoing expansion of the E&S market. We continue to believe that highlighting our clear value proposition, focusing on client service, and providing innovative solutions is our winning formula for success,” said RSG founder, chairman, and CEO Patrick G. Ryan. “We delivered 20% organic growth while maintaining solid margins, continuing to invest in enhancing the Ryan Specialty platform, and making steady progress towards hiring the largest class of brokers in our history.”
Ryan added that RSG remains confident that its financial strength, dedicated team, and capability to execute allows the company to “deliver sustainable and profitable growth over the long-term.”