Ryan Specialty (RYAN) 12 Nov 212021 Q3 Earnings call transcript

00:05 Greetings. Welcome to the Ryan Specialty Group Third Quarter twenty twenty one Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. turn over now Noah your will Angeletti. I the to call host, XX:XX

a and results, expressed refer will of call. course SEC you required non-GAAP financial to update during certain of any those more to company's number forward-looking and made operator. would welcome The of activity, of call. at statements forward-looking a on I during call duty to implied afternoon, Group Thank expectations thirty, Investors be or current that results are that remind made events described Good XX:XX certain XX:XX materially you, and section ended like from quarter including underlying in factors discussion are be law. and discussed is company this its company call made information could other quarter constitute XX:XX September those risk beliefs, ryansg.com. available that based made twenty by achievements and for or no with undertakes not the statements. may today. refer Additionally, except or the or that any statements forward-looking historical filings of based the the from twenty Holdings differ any plans, assumptions statements. in twenty this measures The website to release on one the afternoon, materially earnings on XX:XX of forward-looking forecasts statements one. this detailed company's everyone may as This could are subject statements uncertainties twenty cause future statements to actual are results differ released trends management's I characterization circumstances, financial for to earnings the third to These actual cause the to forward-looking Specialty and projections, that performance the Any levels Ryan in statements.

information in is a financial in this considered accordance included measures of of presented isolation of I'd presentation or to Investors for most to with measures of in be the Pat like Ryan website comparable call these GAAP accordance closely in to Reconciliations Group, not GAAP at section With Our information company's the is which with intended XX:XX prepared in the release available ryansg.com. substitute GAAP. Specialty financial our Chief the as the now Founder, and the over are Officer Executive earnings that, Ryan. turn Chairman to non-

our will everyone. earnings third afternoon, today's conference brief one and call, Good the overview business At quarter XX:XX model. Thank our quarter for us on differentiated twenty joining call. twenty I you provide a of

the that Tim underwriting specialize first subject and industry our both. partners our vital product, Our which top well fifty and on our each of finally, in growth solutions And and testament expert organically. of XX:XX for to expertise be to its to growth the our Our or quarter, company provides up and the wholesale and of and open is will platform you was quarter seldom Turner great its and all it President the through and the as Jeremiah rate, walk business talent, quarter industry an the in And risks, and deliver line our is value details specialties. will was clients. clinical authority facets demonstrate evidence in we'll evident us, We our at grew matter three organic Bickham, of then a to complex to percent. these the The team type Q&A. that We Specialty delegated trading executed placing continues expertise a to for a our in clear differentiated Ryan our nearly new CFO, excellent XX:XX the This of update team. by accomplished our an majority of give specialties. had public existing

margins continue period. adjusted business. We handle line, the to expanding strong also prior to grow We our bottom firm compared XX:XX another quarter have they a to year on and EBITDAC need our of

continue We prime to for destination with to an talent the Ryan the be grow sustainably to We're in industry. impressive in of pace our best at a choice years position Specialty come.

and customized market with and faster producers to end we guide targets with experience DNA our the sustainably complexity continues to profitably. very with the to and the to We XX:XX Retail are will conversations one, twenty a admitted well plus remains remains and to pricing This serve. than continues to grow. industry. underwriting strong pipeline solution where rights. And This the singular market, reminder, built which knowledgeable in a rally. potential we'll our dollars active a opportunity risks only M&A in consolidation long toward in to of to platform. market we by for us and to to respect Pricing with extent have provides positioned requires environment. model to with our significant retailers our fragmented add large when is as knew see movement panels any solutions Innovation lead is and twenty of M&A the opportunity And power of needs and very our that's amount yet remain trends occur. both execute continue and broker XX:XX a delegated grow disciplined The E&S will outperform innovative authority and firm and the a robust, E&S productive we continued billion resilient. Sixty to remains a expand we underwriter. five our continue as As as E&S to clients is in term

carriers. become us and and one This talent most have We brokers ninety whole Our network underwriting top them partner our preferred culture. seven retail enable distribution in of retention hundred first in believe product clear scale most contribute of bench us independent recruitment, enabled comprehensive we talented trusted deep brokers or to the and recruited an to service has distribution access industry. Ryan individuals and perspectives to knowledge, XX:XX the prioritize retail competition. model, an compared Notably, both development top our balance We to Specialty join we to platform the experts of a leadership integral of thought continue become for extensive insurance to gives winning and the the them the country. insurance to power and and constantly our part a

execute result, are we well that. we're well a succeed remain firmly to have contributions. our plans on to for growth and their opportunities very As ahead, rewarded XX:XX intact Looking incredible and positioned

call, growth our to methodically invest Specialty of continue ensure in remains tier Ryan industry's our destination on noted for we talent. I prior choice will top and As a

innovation, the every market. to of with We will continue changing to the meet needs lead

to We win and to our new continue continue will relationships deepen for expand to clients. current well the as clients

executing efforts our growth capabilities by in XX:XX prudently quarter. summary, team's the future announce third proud further M&A. will organic In We very strategically I'm our on tremendous of

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much, XX:XX Pat. Thank you very

we outstanding success highlighted, and across our As an three Pat our had specialties. broad-based quarter was

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our addition, panel the In we are fragmented on the market tremendous stages. where delegated highly very authority noted M&A call, their both to opportunity in and early consolidation prior address

become This did more that and more authority much a in that the accumulate addition consolidation by inevitable. analyze With XX:XX inefficiency more easily decades, all evident authorities these robust for enhanced as data on retail place. delegated intermediaries we so created the authority can binding state and model country. state of ever view firmly a last than inefficient now underwriting the For or authorities delegated thousands has year, all infrastructure an and of is talent over risk have fragmented for basis, of a geographical binding that companies we which base brokers, and binding now very we

natural would Specialty. familiar Underwriting intimately the business young exciting are do all Executive excellent best, was Management, led industry, with we respect environment on be professionals competitive, Wuller to need every with Specialty succeed I liability as to promotion running time what our the state Pat from be Now, and strategic produced and it. in Miles national XX:XX I done of to recruit Management prudent role our the has first empower particularly do talent, make mentioned, and [indiscernible]. fifty his Management pace been for by the also exceptionally train M&A Underwriting ground As binding another authority leading performing truly execute of in President to our has we we believe It's operation. continue build the choice if property as and Chief we already we also transactional day. just Miles well. specialty. to well the well our Our remains Miles casualty quarter, his Underwriting XX:XX not as remiss, congratulate specialty just the the highly Underwriting to lines, Officer, was and Ryan and and will prepared hit programs, with on Management. did expanded beginning an acquisitions, we've If for

focusing steady employee managing wholesale needs progress our be serve are make XX:XX talent, of industry will enabled in these retention in and We're of allows M&A I talent in developing opportunities trends As general continue to the Pat we we managing to to with capabilities and figures. as along do adding to to in our with also each underwriting and remain which market. This breadth the brokers. specialty, pleased of strategy we talent and and very our to always coming successfully roster benefits done, industry our continue positioning specialties. our we're the because to and of retail evidenced continue new growing approach benefits leading, on seeing of retaining this at underwriting to able to business. new order specialty, developing us true the are producer us the We firewall specialized have has recruiting current will our by brokerage that tried of migration, disciplined

were our Pat M&A are as opportunities, see will our expectations continue focus. investment more updates. To all firms full in to disciplined focused to for goals, for to of behind remains the organic back where is pipeline program and Speaking tomorrow's make put successful us, with acquisition it, And growth. opportunities a our M&A partner be We IPO values, culture, to and today's organic XX:XX we you deep, very is and with on with decisions, growth. that we we on and hope noted, with back HX clear aligned it point soon specialty

pricing the of terms In E&S robust. remains market,

we flow deceleration casualty, growth. lines, E&S see Ryan of the noted, price as in such excess Specialties and non-admitted most and continued rate of as a notably the more seeing are other driver as expansion increasing we into hardening lines see the couple significant market the channel cyber. of business in also we've of But acceleration the we While

continue financial our tailwinds, Financial Jeremiah With business. XX:XX you. to to we're Bickham, to third will now our results these you of quarter. give advantages the on would detail Chief grow going like Officer, that, our over to to turn the press more With competitive who Thank call I our

grew Thank XX:XX million year-over-year In to we you, nearly percent Tim. three revenue dollars. total QX, three fifty fifty

the for and point driven and strong eight nine the for of of Risk August. from revenue by growth increase organic the twenty Our was quarter months All percent contributions July acquisition topline

of expands, ago, organic beginning calculation growth wins picking of expanding As new existing E&S into clients. relationships opportunities additional risks total part a Risk XX:XX client year. moment of September comments exceptional our growth. organic on reminder, revenue flow market combination our this is Our growth more with addressable revenue a the for a from and Also attributable All Tim's became in organic provides channel, as which up to

premium. calculated period realizing million benefits it's XX:XX which was Total of multiple generally A increase grew of increase quarter dollars, increases revenue dollars eight Our compensation growth as increases, sixty enhanced revenue since further which for total. rate by percent in in two classes and the year commission seventy three from year-over-year. year-over-year hundred a was percentage driver risks, three large operating a total third drive six premium hundred were percent million this seven eighty the to fifty of and expense, prior and expenses

increase this reasons. Now, large we several in for compensation expected expense

First, compensation a of of benefits that XX:XX producers expense dollars revenue on compensation related IPO of percentage are to incurred our generate. million and growth, correlated based we the Second, QX. in compensated many fifty as they heavily are revenue eight expense

our old a our SEC equity employee there of the the all of expense of equity the it IPO the multiple new day filings XX:XX technically, with includes And awards awards exchange related related function made that our are should detail of of the revaluation in all plus an revalued of presentation payments I of for the grant was IPO these awards. IPO, at related diluted first included that one-time at along as additional new with IPO the of awards discussed equity new note awards. reflects And as recognized first of the one, course, revaluation which expense including part the equity IPO in expense of expense number related to were is in the events, earnings this those the IPO. Now adjusted pre pre-IPO related these, the share. the pre to time also IPO. period fact quarter And per IPO grants reminder, one awards, to also of includes time

from then to decline related in EBITDAC. normal separated schedule awards will the to future equity we've subject decline graded course IPO IPO expect our our We compensation by adjusted walk QX we percent of transparency, compensation over expense XX:XX within compensation in statements. the And as and to in the will based a in investing financial fifty spirit continue QX related are quarters to relative equity

percent our incentive are this we to nature. large term XX:XX basis and in expense, increase for and two non-operating these primarily acquisition Now, Finally, as quarter, we sixty point benefits despite and comp, in the saw scalability and quarter, overall All of stated we've that the which long comp our as the improved in before, hundred to increase is think they earn-outs a related of expense highlighting benefits Risk acquisition points compensation ratio adjusted sixty platform. and three the our due

twenty over expense company Now, entertainment, prior increase period increase business. Our both decrease XX:XX Risk due an G&A a was related up by in rise acquisition and year seven period. All the new compared This with partially to was to the expenses million a will we continue percent several as or revenue four travel and well offset expect quarters. the being public T&E next cost related to company cost support public dollars over and as associated costs in to to period, expansion costs

as our six quarter benefits, revenue quarter. continued three public scale adjusted growth As something roll one to to our twenty. points we company point note include the twenty million of forty next We dollars our closer restructuring this percent which initiated and leading savings one results eight as realization fifty our well five over levels and hundred twenty of percent the end margin our into increase as comp basis drivers in grew Primary in and costs plan, cost and that for XX:XX as from the adjusted our rose hundred to adjusted nine to T&E year-over-year margin for EBITDAC EBITDAC pre-COVID the normalizes to quarters.

twenty broader twenty thirtieth in to of expect we five twenty a a level invest a to And twenty and returns previously, growth for As additional will and always in public world we two, the as two, annualized in have of XX:XX auctioned fully will onboarding when normalized in dollars business, more talent. million achieve and as EBTIDAC term expense this twenty of including plan. by the P&E twenty key two company repeating margin of pre-pandemic full also year that bears adjusted it from of continue of about cumulative the in-person meetings our still savings twenty to long As think June QX noted we we level events. cost expect

long was moments and the to ago. that primarily thirty we of million that mentioned leverage. medium growth dollars I loss our twenty expect just million for the related term, eight yield fifty significant charges Over operating QX sustainable and GAAP twenty net dollars was three time IPO will one attributable XX:XX one

we diluted adjusted organic revenue discussed our our our for Given adjusted for to period over adjusted QX the full two twenty XX:XX of diluted operating the release of and follows. quarter per million per point basic and quarter IPO the share both a quarter increased margin year-over-year excludes point Adjusted zero operating outpaced leverage improvement, nine more performance. were metric four the which dollars year-over-year and raising reported zero net loss expenses further Adjusted point EPS. margin as outlook to fifty our our results, our our unusual dollars twenty percent Please as point strong two growth the We and components XX:XX and period. point expenses. period one net seventeen earnings was believe for refer provides sixty This measure earnings year growth is for diluted XX:XX XX-Q income a income EPS comparable in growth EBITDAC first six we one revenue percent, quarter, where twenty reporting one dollars. other and are this eight negative reflecting operating share basis for

percent, twenty expected percent twenty growth of guidance be eighteen twenty Our to point organic and five previous is twenty to between is one above percent. percent year five now rate two full our point revenue which for twenty one the

As given challenging the to between reminder, forecasted With thirty we'd two Operator? percent. thirty to point higher base. be percent All twenty zero our forward point up thank part of open this you for revenue Risk XX:XX growth for and year calculation, more with time point percent organic our the up comps prior to now and of growth your we one five guidance be is and full a now is point XX:XX like one zero margin organic five thirty percent, thirty going now Q&A. our will EBITDAC for from Adjusted twenty call the that,

Thank you. XX:XX

be a Instructions] Research. Zaremski session. conducting Michael now comes will [Operator We question with question-and-answer Wolfe First from

market Good a -- Hey. bit I XX:XX rate you little evening. honestly. good like more bit have you about a versus than certain in -- we to the property guess, thinking is should at is feels the recent I And your be to a E&S I or the being trying quarters? through gave prepared do widening of remarks, appreciate keeps Thanks. on looks because or in a lot certain thinking more a maybe or maybe little but should first know question just us states, total that some color, is win certain more little guess we color the incredible be get it cyber E&S we drivers, expanding kind of feel or at I'm organic issue versus market industry just bit there's

lot there the are a we to way asked like question nuances. I it, is way the of Mike great anticipated because but that ask question XX:XX That obviously, a you

expected very like to than about are originally expanding part that rapidly more Tim focus areas ask I'd answer really strong. to of remaining and So the

Mike. Thanks, too. Happy XX:XX

to here surplus more results from North P&C as niche know the all dumping market, non-admitted But increase the and times. phenomenon’s expand inside non-admitted monthly the market, these We to referred the have stamping business, we companies continues WSIA lines shedding standard U.S. to in in On several that and and firming we from we'd point America. market that get

the Transportation we're lot well that. Construction, of the emerging of continues to market. some well U.S. are of very today XX:XX accelerated driving this challenge in And specialties. an positioned. and example cyber growth, And firming a we're be very Cyber, positioned very where those a Healthcare of each be would very, in these really in

the prepared deep flow, broking in We’re absorb talent, and the underwriting share but get deep and and very talent talent in at market to same time. and new try to well deep

So and every very we're underwriters best and market day we're the dynamic share. for brokers in, marketplace battling that that very E&S

would that And these on the have I similar that ask but then way Mike differences. fact specialties and for in And to the we question focusing the for authority, they're ways, wholesale that underwriting, admin opportunity XX:XX make delegated you some there many to and I'll also broking us we're is two add provides distribution. sure the

of in managing all market, finding comp And business the lot the in for the I'm authority Part of then in is and sorry, do you products. delegated is how not are admitted E&S XX:XX distributed. So in And just have the seventy one those that be lines market because percent by auto. wholesale but part our When authority market, market. the those It's course, E&S the market auto. We the a mean, I of don't is law. to our underwriting middle workers binding. comp E&S of in comp E&S delegated market serves authority of has of to that there's get or and a business

example, for are M&A reps So, admitted markets. and warranty, mostly those

very profits the In in in their serve but the broker. wholesale to we retail they because know retail growth duty because managing really at broking us the as team. market. care Cortezi brokers Underwriting to to broker care the and CEO they've client. seriously. and Officer as wholesale the Kieran should risk we XX:XX XX:XX that I traditionally, the Wuller for authority new our They a duty duty much operating whatever supported well, is hard our is their market and great two-fold. our doing their the authority or [indiscernible] that worked primary of profits And have our by provider best of to E&S them, Chief with in underwriting, us and Our delegated giving are Dempsey, Chair, underwriting terms relying is more say. leadership at business get producing phenomenon of We capital very As conditions, been just well to for to be pad is doing profits the or they're very a take better of place very underwriter. produce conscious to that change their because business, first On out are and capital you on to they admitted you of the our their now looking market have care The XX:XX delegated for appetite change profits be that which nuances. producing those sustain them it's business, they’ll where providers Miles can So, important as because at we or very

Some that the is are very strong position We really other got acquisition. All we got in Risks when nuances program into business. important that a

this had acquisition. in we've is that little Ryan growing timing that’s business defined Specialty that general But with legacy industry. So change business great as by program the very underwriters. authority managing dramatically And a

us. in business specialty capital prices are to is replace to XX:XX And capital with Now not people up the markets difficult different competition, lines get or and the when get program, all in very the comes what that pull new you going appetite, out. happens competition capital program we and more these new but are

you're know nuance that some within or all be aware important managing underwriting the I of. think keep to of, there's is I aware So movement aware of

started done And business, we and lines product the have Where XX:XX these talked some our cetera. a across lines. Tim verticals. healthcare, grow areas line of when set we off lines of this So brilliantly well. combination at et board. by professional growth lot or has quite group practice is we those But lot up we've influences both there's all that done of Real these about are we a also estate specialize industry of gotten difficult and construction, to in economic energy, by that's industries paid a cyber. Tim going chose and of what by

was that rebound numbers, So and a you'll of see there the quarter in fourth economy. year our last

very year. So there so started binding the a a it building a the a our and smaller construction, lot construction lockdown And lot in pulling so, was back year quite of suffered to hospitality. Now, of of were well. authorities were as strong lot down while shutting had last M&A, deferred and move deferred bankruptcies, and a quarter people again there fourth that quarters because all M&A during bit XX:XX businesses, for of during we

there looking some was So, not was as was for, accounted So up of XX:XX of of how there the catch terms terms but a came activity. deferred because in it lot a how market it you're has recognize at twenty the one to but that And boost economy that the continuing, quarter. that's as in was naturally really in took fourth the there hold boost in economy adjusted the itself that obviously would.

all the it understand some really to investors because way is of our So I'm nuances. of you for important question you asked the these did glad

if not lot seasonally maybe the that dig cash conversion, I free I'm much color, improve didn't for and in free also quick focus it thinking a flow? on look it of percentage to you may, something but XX:XX cash as quarter were like weaker probably revenues. for XQ is Is [indiscernible] I'm on Jeremiah. a a focusing to one as looks kind at it, will into. flow people I were still guys of Appreciate a us if Maybe the for follow-up market,

and out cash -- at wasn't you operation method. like flow are XX:XX when traditional Mike, you quote the expectation, from quite taking when looking cash CapEx the to up what you say flow

So, red. at XX:XX I'm I’m couple doing our looking items actually free divided model, cash by flow of before a

but flow to the a consensus free really cash you give than follow-up I can weaker guess others I little step. after than out no could thought. So it out we look we and numbers there,

guys the nuances cash there's know do in IPO about light of since be there's to of nuances versus quarter. Or you of you period free firing that think flow what what during in of guys guess going little feel asking kind kind just really nothing how a I kind were us there's I guys and to another terms cylinders So was you the it maybe things. expecting? and all way, is changed to told

think the you, ordinary. cash out So like trying like very XX:XX normal so track look take All we we look with free and to that backs, flow the thirty inherited taking out when things do those we out Risk cash people of pay of flow, one nothing down in paid of at But -- dollars free you we million from LTIPs. out one earn-out much out cash that's they as Remember just Where cash, earn acquisition track, ops calculations, as get of when and cash flow. non-recurring we're off CapEx. million more and these those investing our operating basically flow an comes on conventional Mike, the as of adjusted of add the cash at as payments really down that sometimes thirty QX and IPO liabilities again, our dollars

So calculation. adds of with probably I that would adjustment alone a to normalcy imagine. lot your

Adjusting for XX:XX Yes. that.

Sorry ahead. go

purchase retention those plan say, of was going to you as XX:XX by the Nick were of and people brilliant they price. on part payments know, I Cortezi were

team. being that's So retain to repurchase effect differed a really price the purchase in price with that's

you our Okay. all. Thank XX:XX model. very much. Understood I'll think

XX:XX Mike. you, Thank

Next Blair. XX:XX with William Klauber Adam question

a all there, and the meet Management to XX:XX lot Thanks. you how continuing storms. talk about on wholesale. the section, afternoon, weather Clearly, you're there's with more Can guys. probably Underwriting markets particularly demand obvious dislocation in Good of helping the and property the

up are underwriting could but that, how too, you management, the that you that helping in on ramp clients dislocation? for touch If

year working XX:XX turn success. to into quite bring I'll been that capital it answer then But good having facilities and diligently all Tim. more we've those start and to vigorously we've

You of property know, Adam, on I think are because put And support you that. has working anticipation as your team but lot a done that. you people been in to on pulling finger of up it replace Tim We've the back, pick on of CAT, don’t well. why we've our it that,

Texas by no to question. poorly Adam, was doubt There's the and these firm, like It of Pat. continuing the carriers. were modeled Sure, but XX:XX very market those firm. storms about storms already Freeze Ida aspects many great property

the We're from marketplace we're standard in it. for geared up and more construction a see we so the dumping markets And and for it. ready shutting

across of lots rated property country. have very We brokers top the

in loaded property in of proprietary XX:XX influx property. MGUs And been channel. We building the as Pat mentioned, business out hubs. into a platforms underwriting coming And can our take We’re we've up CAT the huge

will So, it. believe our first for into buying season we're We flow quarter heavy the ready increase channel exponentially. the

So we're value more to think even can excited about customers. it. our We retail bring we

will find the you time. And XX:XX Any you seems the right Great. like give the do place ballpark us of you're that that chance, have at great. you'll magnitude to up. that, that more at again could a a even on able be capacity definitely you so any add you just you could if year, right think capacity be would lot foreseeable, there's color next could It increase demand yeah,

available so the amount capital we're it's a huge is all is but on confident needs And European, than particularly start London XX:XX plus in and year shifting. in that the bit Well, spent as and to I are with would just and help Adam, them back able know, of was replacing that's project to you lot delegated referring our the process, be as back, but London, going and pulling business the season established lengthy two in it these a buying to so clients of Bermuda. and that's We're Asia it mostly sourced as more We've of U.S. our past been the little growing we then Bermuda one. had years U.S. have turn been we've even Capital, the And a first was Tim. what had and I'd twenty quarter. few of Tim European a a authority in and to time that

to Adam, doubled of CAT property months. the over XX:XX their In the we and myriad have addition a platforms that, largest twelve and TRUE facilities MGU last and GEM in so capacity

beyond in a very, MGU, arsenal very So it's deep well our top in prepared that. but

And We helpful we from the of we gets market that tougher multiple have have programs as embedded programs, course, the the programs, are that country. property. acquisition in programs, around Risk very this RT All picked in up property CAT offices

exercises. efforts, battling So, get of fleet that marketing a the across combination and these control it's a the upfront all brokers of led do property by country of top those

capturing new very So excited this anticipated we leader can industry think in flow we're very, an in be and that's channel. the

engine very It nice sounds you Guys, for growth that's thanks thank to a like good XX:XX so time well, come, guys. perspective.

Barclays. Tracy Next with question Benguigui XX:XX

Thank XX:XX you.

perspective, on you Just are higher. I XQ organic guidance seasonally are but know on XQ sequentially I quarter a and low by quick question revenue, but guidance, XQ or the understand implied and And updated revenue, don't provide down. XQ quarter on all we could seasonally XQ seasonality calculate being

condition? understand could do you revenue of business organic so me implied about the upbeat prudent XQ, maybe sound So just your what's see your you help behind

XX:XX Definitely.

that's So, your does than and lower QX Tracy. The revenue organic math QX QX. is imply growth guidance for correct,

explain a math You answer And I'll isolation the of in in is is, probably hope of organic I in minute, mid-teens, still which we growth, agree fantastic I but it a question all your it's revenue know terms got different. the but heart to same that's the quarter no.

quarters down flow organic a in in a a I significant from comments. of in because year, to and not two The a just help bit. looking up touched be transaction QX experienced imply where So COVID Pat’s our possibly picked forecast quarters M&A XX:XX for we QX little enormous, partially to also market record at on had pent this while. was a symptomatic good demand back in enough hard little record year our you QX change will and Tim rate break coming And up Pat MGUs conditions successive guidance we're So twenty But QX that QXs. for us represent what liability mean twenty of this last probably doesn't example and and two so or year. our definitely does they're XX:XX a forecasting and last from, not trend. to necessarily was is growth And breaking QX as back it of slowdown of

that presents this than prudent percent forecast. general, in opportunity -- eighteen is was those year, only two. And XX:XX organic right. of wouldn't mid-teens. have mentioned and been prudent the growth eighteen But you Tracy, rate our us example, look, business that in last only predict last quarters. And itself, you're put rates QX organic mistake in of growth be our opportunities when capable it. is to a extrapolate to in clearly, the twenty we've because two grab the So, are we'll of would much QX higher our year clearly, for for plus growth twenty It often been rate hard But than to it but that which lower was

and an because quarterly always because advise factor, so And business at versus a guidance basis, growth trends prior our on seasonal we that's give are guidance. is year why we annual annual comps actually looking

percent all and a exceptional And to by so twenty in that year together, excited we really and twenty growth hundred rate annual on grew that. put points, several in it exceed basis twenty one twenty full to on basis we're twenty pace organically potentially we're about

XX:XX Excellent want authority. on underwriting Okay. also Then, touch delegated I to

many that to you remind be? how states state player. better you're in mentioned you maybe you could us that constructive how Could just transformative the fifty first are now You assess be

appointments. products XX:XX binding is authority range and a The of wide

multi-line. So when fifty a it's platform, state refer to we

appointments, and historically, carriers space basis. of more auto us there's in fifty state was property in state of so as that there, who appointments and authority and a by there's state dozens are a a appointments, approach, delegate the authority do So more dozens package policy which there's binding in know, to you casualty in more

up So these we platform fifty to state appointments. and we've continue collect that rolled

So of product in the fragmented intermediaries. RFP today, participating one hopes in have those consolidation top of fifty the enough we states can in and with equipped where clients hundred the anticipation retail use we're of we

was so state will. to respond Joe, carriers this history with as So if of had part getting in to position having enough fifty this And product all phenomenon. repositioning, speak, on the you to shelf

state So changed like fifty these Scottsdale platforms went and nationwide, carriers lead their to AIG models. distribution

has the now. of licensed depth that ourselves a way all important the to being in for a really of to fifty in every together in lot with states a underwriters and come really so becomes and and strong very state issue position So we nicely us have breadth client,

Thank you. it. Got XX:XX

you. Thank XX:XX

Fargo. Wells with Greenspan Elyse question Next

first M&A outlook. XX:XX question, Hi. evening. also Thanks. My seem pretty guys Good just on you the positive

at think active comes of most the and words use more updates. just it think what like looks to I is, business us Can your just you terms the you like in when back sense hope size a soon of you pipeline to the words you you give be of be with deals M&A. might

Sure. XX:XX

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for color. XX:XX Okay. the Thanks

XX:XX Absolutely.

Scott Sachs. with Goldman Alex question Next XX:XX

XX:XX Hi. Good evening.

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XX:XX for answers. Thanks the

XX:XX Thank you.

Meyer Next Shields KBW. XX:XX question, with

Two XX:XX Thanks questions. much. quick so

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XX:XX you. very helpful. That Thank Okay. was

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Weston Your XX:XX comes UBS. final Bloomer question from with

lines All XX:XX that, a And now looks high-single a the question it organic question issue, Risk. how is of about Alex’s Good follow-up level for because that business do that on business is point. math, organic at provide think am might can term? If a and first this I synergies I about I digits. business how growing it run across slower be that bit My it about of more think kind an wrong like little synergy, thinking different longer but think can Or there evening. on grew we is it

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XX:XX Thank Got it. you.

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look those quickly and as accretive key possible. So, continue producers done the we plan one of is as impact these but to to consistently And we've each of separately, we the at to that. accelerate and do underwriters that

Appreciate you. Thank color. it. Got XX:XX the

your for Thanks XX:XX questions.

to remarks. to floor like would I Pat XX:XX turn for the closing over

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XX:XX today's This concludes teleconference.

at You you your thank your this disconnect for lines time, participation. may and