Turner: Ryan Specialty sees continued E&S expansion amid shifting rate environment

Ryan Specialty remains focused on growth in the excess and surplus (E&S) market, while noting that rate increases have begun to slow across several lines, executives said on the wholesale broker's second-quarter earnings call.

“The E&S market remains attractive and is continuing to expand,” said CEO Tim Turner, noting that Ryan Specialty is benefiting as more risk shifts away from the admitted market. “We continue to see more risks flow into the channel as the admitted market retrenches."

While carriers are still achieving rate increases in many parts of the market, Turner acknowledged that the pace has slowed compared to the peak hard market environment of the past two years.

“We continue to see positive rate momentum in many lines, although the pace of increases has moderated,” he said.

Property business in particular remains competitive. “While pricing is stable, some accounts are experiencing pressure depending on loss history and geography,” Turner said.

Against this backdrop, Ryan Specialty continues to leverage targeted acquisitions to enhance its capabilities in specialty underwriting and distribution. The firm completed three acquisitions during the quarter and remains active in the M&A market.

“We continue to prioritize high-quality opportunities that fit our culture and reinforce our leadership in specialized underwriting and distribution,” Turner said. “Our M&A pipeline remains active.”

The wholesale broker has been vocal about its strategy of leveraging M&A to expand access to niche markets and product expertise, and Turner said the current environment still offers meaningful opportunities for growth through acquisition.

“We remain disciplined but confident in our ability to deploy capital where it enhances our long-term positioning,” he said.

Ryan Specialty’s comments come as other industry players note signs of rate moderation, particularly in property, where capacity appears to be stabilizing following several years of tightening. The E&S sector continues to benefit from evolving risk appetites, with firms like Ryan Specialty well placed to serve shifting demand.

The executives were speaking after Ryan Specialty posted second-quarter organic revenue growth of 7.1%, down from 14.2% a year earlier and 12.9% in the first quarter.