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RSG M&A program in ‘full focus’, getting ‘more calls’ after IPO: Tim Turner

RSG Chicago with Ryan and Turner.jpg

Ryan Specialty Group (RSG) president Tim Turner said that his firm’s M&A pipeline is "robust", after its IPO attracted market attention and enhanced the company’s brand recognition.

Speaking on a call with analysts, Turner said that RSG is in “various stages of development with several great opportunities” that are consistent with what the firm has done in the past.

“The pipeline is robust,” Turner said. “We actually feel because of all of our growth and success, but also the IPO, that we've got an enhanced brand and that we're getting more calls from people, from sellers,” he added.

Turner went on to say that RSG was “very focused” on its IPO process during the first half of the year.

“With that behind us, our M&A program is back in full focus,” he noted, while emphasizing that the firm will make “disciplined investment decisions” to partner with specialty firms that are “aligned with our goals, culture, values, and expectations for organic growth”.

Since it was established in 2010, RSG has built out a comprehensive wholesale business across transactional broking, MGAs and binders. The business was taken public in July, originally valued at $6bn, and has since traded up by more than 61%.

The wholesaler continued to post blowout organic growth in the third quarter, as the organic top line grew by 28.9%, up from 13.6% last year and 28.5% in the second quarter.

Founder and CEO Patrick Ryan told analysts on the call that the majority of the firm’s growth was achieved organically, and that this type of growth rate is “seldom seen in the industry.”

Looking ahead, Ryan said RSG will “continue to expand and deepen” its relationships with existing clients and win new clients, as well as “further enhance our future organic growth capabilities by executing strategically and prudently on M&A”.

Ahead of the IPO, Ryan Specialty made a series of major management changes that included the appointment of broking chief Tim Turner as group president. This has widely been interpreted as a move by Ryan to anoint an ultimate successor.

Turner had previously pointed to “exponential growth” in the E&S market and “real fragmentation” in the delegated authority segment as major drivers for the business moving forward.

The executive has commented on the wide scope for additional M&A activity, despite the high degree of concentration in the wholesale sector with RSG, Amwins and CRC estimated to control about 80% of the wholesale brokerage market.

Speaking with Inside P&C shortly after the company was taken public, Turner said consolidation among MGA, programs, and binding authority business represent the most enticing opportunities for consolidation.

“It’s a great opportunity for us to consolidate and retailers need to consolidate that business,” he said.

Our original story indicated the company had traded up by 18% since it was taken public in July.

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