Ryan Specialty (RYAN) 14 May 222022 Q1 Earnings call transcript

Greetings. Welcome to the Ryan Specialty Group First Quarter 2022 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]. is conference this note, being recorded. Please now Noah Angeletti. will turn the host, your to over conference I

You may begin.

those except to duty may of this achievements reliance no course on undue forward-looking by to place trends based call. everyone company Operator. company's results, refer of to guidance, not restructuring SEC or you forward-looking future levels the as release Holdings' current would earnings management's from more are is statements historical company's other performance Ryan statements. call statements I you, a quarter differ website information Specialty the that any afternoon, of of a implied I company that those Thank Good statements. constitute beliefs materially made this Factors XXXX. during to the and required law. like Group integration initiatives, at discussion expectations and made first made of could Risk with afternoon, may Investors on any statements. from forward-looking ended including undertakes be These circumstances, that are or not March filings available number quarter refer the described underlying and ryansg.com. differ statements The detailed should results in based its the financial released that expectations, characterizations made or the and statements certain are expressed including XX, any materially plans, and to to welcome in outlook, could assumptions, call, to actual This actual to on of remind statements events for the for subject earnings today. statements. during Any in results cause are XXXX projections, forecasts, or cause any the section forward-looking Investors forward-looking uncertainties update The that forward-looking activity, the timing,

financial revenue adjusted measures non-GAAP net this including on organic EBITDAC certain and EPS. will diluted call, adjusted rate, adjusted Additionally, growth discussed be income,

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

everyone. afternoon, call. quarter a I for on us brief provide moving strategy you call, of forward. first joining our Good quarter Thank our XXXX On the conference overview and will earnings today's

will events. our Tim three Jeremiah you for it give will lastly, Q&A. up then walk our through of Turner, Bickham, Our and And an on President, each our recent We'll specialties update financials. CFO, open then

first quarter up seamlessly revenue our XX%. organic Our revenue we led as of growth by performance, total from grew outstanding XXXX of XX%, picked XXXX

adjusted growth a We EBITDAC also income and net year-over-year double-digit on in adjusted basis. achieved

strong by driven of across all were results growth excellent three specialties. Our our

Our to us continues competition. and clients and against outperform our in in our environments strong provides this any to value to platform and quarters that quarter differentiated enables prior performance various considerable demonstrate

have flagged in of Broadly speaking, resilient remain We earnings perceived on are pleased the periphery, call, changes The the to prior remains majority of not we on see our business. developed. market yet E&S we our marketplace that robust. the which lines rates

than the moderated, been have they've the continued expansion more increases While offset market. rate E&S of by

ability offer in with underwriting of the for new QX, a top onboarding we proving We particularly and the destination the backing Further leading producers, continue brokers them to our infrastructure them choice retention proposition, We team. winning financial for with to industry-leading which our underwriters in strong add out is a innovative our speaks in which leveraging believe unique and to solutions bearing provides are that underwriters value allowing this industry-leading business for best-in-class a to hit our our specialty, support, talent clients. running management by focus our to and capabilities, we build industry. teammates the on providing volumes We ground culture.

growth the course expect we forward, Moving to initiatives. stay on our

of We on to for Specialty be accretive in ever confident largest in XXXX. We the our pace these remain forward. broker Ryan class going next-generation are teammates investments that onboard will

ahead our conveyed, of are previously Moreover, novos, formation million our as of will from more restructuring We by on. June we in XXXX this pushing XX complete $XX we hear have year. Tim de which program you'll

as Along Looking to ahead, growth. The competitors. our our to expand continue E&S increases. the active pipeline and platform ability And we our we continue profitable we market from the years, remain have complexity take to very our continues for we last to of steady enhance to maintain additional for as market risks growth, and highly look XX with confident as share opportunities M&A strong maintain a capabilities. organic we in

sheet find that balance right act enables the strong and to ample opportunities. a capacity have us We when we

cultural before, remain disciplined our shareholder their and to that unwavering partners, trading winning our fit, Simply, our another in and we and will incredible was move dedication opportunity for our an noted forward model Ryan team quarter clients believe due strategic, Specialty business our we we is that identify we've to returns. culture. accretive a time-tested outstanding only and As when strong to is this

over turn Tim Turner. to I'll positioned and to the our With well and business call grow continue profitably for value President, Tim? are We our long-term that, delivering shareholders. to sustainably now our

very Thank much, Pat. you

on right out day behalf the underwriters roll in our end of across XXXX our at a with we to in and strong a Pat testament quarter As we the work teams of XXXX, picked These are up where teamwork their their left day firm, up results producers, the and highlighted, specialties. clients. our our who across sleeves off to and

base, significant value made addition, In our and quarter continuing our talent product offerings providers. our strengthen clients and to broker to expanding our we strides proposition the broadening in capital

market as in see Associates has and driving to of casualty another property Binding Practice our commercial growth. accounts which to in Crouse experiencing as E&S specialty, of also reinsurers be small see on are authority from the pressure and the the markets operation. brokerage in growth wholesale eye XX-state their particular, business to Our We're delegated admitted face flow continues creating outsized In in all see lines infrastructure channel, portfolios, addition continued specialty firm. where strong submission record derisking is Ryan additional seeing Construction continue health first close consolidate market. growth lines widespread toward of in our property we our vertical more which into across business. cyber Specialty our excellent winning increases liability, our cat success we binding the and a construction. pushes path see authority is to experience business strong double-digit Also, seeing significant flow, and and on opportunities in binding proved industry-leading our into contract essential Authority increasing into increases team both the our keeping continue habitational carrier Within and We're growth flow professional submissions care lines Transportation to an solid across truly renewals. for E&S with in projects the

profits a strong quarter, basis year-over-year trading partners. our solid delivered a growing Our on underwriting by to double-digits management first revenue deliver while continuing carrier to also specialty

trading As underwriting we in partners. shown trust appreciate these profit to we've with our our careful carriers are noted we the manage for us, before, deliver growth have to need and the

with provides remarks our and we're to manager Through XV A.M. excited on follow-on as we Nationwide, this specialty two access risk which call, of update the very arrangement our in to strategic to progress a our As our excited to exclusive Nationwide quarter, mentioned I'm the best-rated of its alternative support York novo with underwriting de Harleysville of you us strategy. limited and last about MGUs. arrangement paper, New with last A+

retaining is of first The program alternative directly insurance percentage Captive Re and excess our auto our through risk an capacity, joint recently with Nationwide managed created Nationwide's by a The Keystone AXSAL, reinsure acquired group the risk will Geneva venture. team. fronting AXSAL commercial and captive

Underwriting Managers, second a and primary general MGU. Emerald liability The is excess

very exclusive Harleysville within business remains The Emerald basis. environment full opportunities expect on We this an will writing be on that line. paper of soon

are opportunities very this for new These additional provide Specialty optimistic alignment programs. novo created de the by service about tools two We our strategic to trading and Ryan partners. these and clients

large pipeline M&A and our remains a of small Additionally, as robust, across specialties. noted, including potential number Pat and opportunities

E&S the the very of market, positive. In remains environment terms

and through steady competition is the that all in competition in flow see accelerate particularly was we additional we admitted market lines quarter with still firm through any Pricing have While on first have fringes, way. nearly and yet very the year remains in the to of market. the meaningful business, entering stress of April, the seen

we Thank As will the detail our of we Officer, significant you driver Chief over so market turn call Bickham, that, to to than said you. growth, of will quarter. rate. the expect give more first Specialty's before, to non-admitted Financial results into increasing with business on And the continue I be flow now Jeremiah Ryan our who a the more financial

market of period-over-period quarter with net per a the share. Adjusted XX% again once EBITDAC total declined other items, that of our income margin spend, In from Tim. which was our revenue continued per $XXX of $XX period-over-period very $X.XX with E&S income by restructuring lighter diluted revenue and organic tailwinds the growth million for to XX% to in first IPO-related to million, realization finish XXX million expect will strong quarter. continued to very the unusual which $X.XX for was to grew were or we we especially EBITDAC EBITDAC excludes in We pick share. Net and our savings earlier. $XX up noted adjusted strong $XXX the plan, the fueled you, grew XX% increase quarter Adjusted basis quarter, benefiting increased QX, drivers Tim the while and or Thank from period-over-period which gains growth, and professional services were XX.X%, XX.X%. pleased for performance and million, of points XXXX revenue back QX. Primary Pat market first the share the adjusted our XXXX diluted

in the our as we were which XXXX, we private However, continued by remarks company last levels, in costs, public normalized flagged to QX investments in margin returning T&E quarter. and our business, impacted of was

basis two well. the a will important is margin the XXX our of as second relative up XXXX, And margin to impact As QX to note it's that latter reminder, points. quarter items

As level top expect we to and by current hire to our previously underwriters and talent to A+ pursuing future very exciting opportunity platform. in us brokers. capitalize offers environment on the onboarding quarters this opportunity noted, unique And a we and

EBITDAC margin. we sustainable our our remains operating Over the in additional form balance that adjusted sheet long-term, Furthermore, and expect will yield of healthy. leverage the quite growth

During cap and term of XXXX. straight converted an billion we the over with our In Fed on with hedge well risk-free an of million the short, to cost our exposure, offering $XXX the fiduciary completed funds yield we the in insulated that of a interest SOFR the at believe high-yield our purchased would And rate. on through on rate April, natural strike rate. very balances. interest credit benchmark cap rate opportunistic further are we we the quarter, capping increases rates In the from a that expect modest rate billion And to to it a instrument. earns $X cash of X.XX%, operating line We $X our peers, a of and steep SOFR X.XXX%. life to similar we have tied a facilities

follows. Given growth outlook revenue organic adjusted our E&S XXXX resilient EBITDAC and execution, environment, full-year raised have a our and as for strong margin we

rate guiding XX.X%. the to growth are organic for full-year be XX.X% now We between revenue and XXXX

We stages continue market. and guidance to E&S the very believe given is hard increased prudent flow that of a into our the market prolonged

low end for between EBITDAC We to XXXX of end XX.X% range margin guiding and full-year now the the adjusted are and also our taking the year up are XX.X%.

investments Ryan with Specialty. are to XXXX excited will noted, summary, talent to the our long-term, growth up time continue of and pleased very thank like performance In over XXXX that, of about and call in As Q&A. and during the we and for we remain ahead order be we in for quarters. serving open subsequent made you we the Operator? the clients for our would are in in heavily quarter quarter and those second With many investing first previously very path the your

at your question-and-answer we questions. Wells our Elyse will [Operator time, be session. from the And with proceed question Instructions]. first And this conducting Fargo. Please line comes Greenspan a of with

you last I'm just have so you're that the kind from your fringes, of question, on organic took you the start guide, first through organic new quarter. that It to think might get My guidance, or seen the like really trying sense. you the of competition we impact XXXX? you When see to evening. sounds right, this good greater year on should that up you Thanks, to said put guys degree you are not seeing together balance a about that as over assuming a we move just how

that. I'll story just hard mind. Jeremiah, pick will And really you start we're think why to historical much keep very to We it it that. on Pat. It's prudent It's don't predict it's That's of up? facts Jeremiah pick seeing with those and now. up. in not the it just

Yes.

noted the we of in And that the later and we piece, important year. So effort that's forecast markets presumption seeing our the cool in the the there's flagged prudence. helpful, be an in that were out to and transparent competition off most

other Even Pat to a seen accelerate. we factor still haven't forecast. just into the still to be as in We that that's forecast, though, prudent keep and that's our The thing, said, clear. think

We some moved other, did. the way context some the additional why reiterate the last to quarter, and it in also I'll give mentioned just guide on

probably that not quarterly are estimates linear. our realize You

and interest couple So economic extended QX addition the nothing than uncertainty uncertainty only also And observed the give a positive produce general the that rates, the actually we're months more and biggest that how total a war. eventually year, change, is Pat relates our rising call markets there the year. of inflation, in come to a organic to from way in we've the and was into as remember well, last And QX past we'd noted months. quarter macro four we love that update you not want what the of in to to out surprise to full-year us. acknowledge hard guidance we it

hopefully, So to need be But case. that's feel the the prudent. in the meantime, we

revenue question, So going when underwriters of really second and more My you right? kind flagged up investing expenses, start there right, then hiring, in to investing, help And second I from there's be that a that on be by right, my second the -- it these companies typically right, have and lag, time sense think in to might on quarter. and is starting for and individuals takes impact then you're guys in talent ramp an the brokers mentioned perspective. bringing to the

as a So ramp you something help think year? hiring can to about you this organic the here? the timing in up us Is this that kind of think XXXX tailwind on could growth you front be

would of that. mixture it's a that I say

expect talent We the in so then some that onboarded have they'll and exceptional already. and produce fourth And to -- we third second, very quarters. start

in And months. expenses third quarter the those that are that have XX garden Additionally, leaves highly could that on They're we've professionals. and people committed. from the through be fourth come so fact, leaves. talented. to hired days six garden anywhere those in deferred will they're they're But And real and

hard great and but seasoned productive who involved these be it's so groups third have in practice these professionals are fourth they'll reputation say in. they're niche how that quarter, the a And in to

And so their to about in near-term. we're optimistic contribute the very ability relative

Our with next question. the from of proceed your Bloomer comes with UBS. Weston question line Please

positioned To organic your back taking what do the Thank how, weren't forecast And XXXX How maintain book the did for the questions. Hi, kind but overall now? of organic public recessionary of are recession? follow-up guidance necessarily you I environment a in thanks your up kind of growth Just you extent can you how you. to over guide. on one, timeframe, potential think the My know year? then? growth hold first you my in curious does that half a during

Weston, this is Jeremiah.

bottoms-up we to get how by in have macroeconomic assumptions our interrogate, not as A Let the mean, they think aggregate they're budget forecasts. we the about to that changed build And were projection. some making lines build different process. be a in we building their a this go know we're environment. for and consistent not are It's to this our a different But highly and know year people and around start there on I And that's underwriter a books. February. the context that and assumptions me this we not broader year, assumption producer, They that or these is every was our top-down and every timing field. slowdown. the lot since seasoned I layering professionals. how do would and just budgets actually We account out already market market. have They Earlier things January theme

predictions is, not would But that you downturn XXXX. anything is organic or going Weston. or effects XXXX. like timing can dealing We XXXX the really the just as pandemic, to would or put were how sorry, on period, or you every financials. was we're know say the specifically what we you in our In a recession hard growth there something do And that. pandemic on a making a So since during do a recession And your I'm you that. against about like was record of XXXX, up and significant asked there recession economic it's -- a in downturn forecast I how different, based with wouldn't know, and

times, we brokers you back other look to prior were the at public certainly resilient. If those weren't the two but recessions,

But the and if you in conditions entered market specific So change how us that remarks, we a mentioned on I forecast our are affect his don't the for recession. insurance mentioned as still have overall Pat a great would answer healthy. most Tim

us And of period economic if then factors we uncertainty. get helpful there's some that sign. for positive a are a So that's into mitigating other

of our and of our majority are -- the comp is expenses the most and For comp majority -- of therefore variable. example, our our performance-based

So recession. not a around but precision our have a how concerned, forecast we we're in of don't lot changes

There's a add underwriting I the to another high to heavily And which require, percentage that, lenders insurance would have on or in banks is the borrowing We're buy discretionary. into managing or business provides the money compulsory point they're comp it's not that our the require. and products. insurance brokerage they compulsory, auto because of law

not riskier the clearly, raise can So to slowdown that's so what's as of into what's And inflation, run exposures, is also and no balance. insurance to the it's And inappropriate payroll there's exposures. ability economy. there's to way happening there's But you such raising would predict to getting that. a Nobody but us do that in But matter world happening that. that a does tougher number a market, be to that. a on for just premiums. give It you to try calibrate an

That's pretty on second the helpful. it. in the you is you specifically all margin a question steep Got outlook, know I more very hiring. around compensation. pickup said, saw My

I XQ think total XX% in last versus to was quarter. compensation XX% up close

from wage Just those further you year? the high-water accelerate are me here? wage year? for the accelerated it of Like versus And mark help the And how Thank what hiring inflation XQ much about throughout as hiring that think expectations two is increase in can should inflation through your move I increase was metrics you. general trends? or for the from

the don't talk hiring. you and the I'll wage answer Why about inflation

Yes.

salaried to we formula But environment, want related or for inflation, pace And to look hiring we've There you still Pat the is whether the But schedule we're a a consider relative go little predict. opportunity, surprises, teaser, revenue. just on very the you're it, for increases out how the ahead Wage offer majority are planned. talking is again, talk compensation hiring there. to paid will of that look that's the had timing they're seen we've producers. you to at it, employees of that about I'll the tied we class the on to rich. as but some give of timing, example, seen on there. So we others, a at broker what letters, some difficult about impact to in bit Depending more our this,

because it's had comp So when impact salaried their the going proportionally. up or us yet. a the And of on rest is revenue comp is going up, hasn't material the piece non-variable negative

and just of historically fine. binding people for benefit talent. that that can a increased talent under culture -- underwriting destination not We're for the a and authority people really and have remain well, you and can And delegated that our brokers managing the in we brokerage, wide their that doing underwriting, brokers All binding underwriting; a really prosper bring looking in choice are our they can in and have that casting exceptional net looking so platform our in see who as done Crouse. And on We're of we're see Risks productivity. really, We already for environment. managing to

university keep So program. right and in professionals of the training young the through had as no experience of and a idea while, putting program talent is bringing our out have and development our referenced, Tim out to in people or and of bringing who seasoned lot college military them

All of are those accelerating.

Our with question Bhullar with Please of from the your comes Jimmy proceed next questions. JPMorgan. line

a questions. I Hi, couple had of

growth. just on First, organic

dimension quantify various If you was relationships the that, you the which of of the Can at you some including, expanded drivers your one release look existing in several on or bigger extent new XQ, the of mentioned you're clients, able think, drivers what pricing. in other each clients, to was to a XQ? than organic give contribution growth I the driver the with in results

more in expand Jimmy. of significant break saw exposure, reflected we the, versus our numbers and our what seeing, the this, needs what much than as fair amount in more of. and already in market And we though flow about and in believe the healthy what flow, we risks well. We E&S the E&S new grew, on amount rate don't as that into that is to seen that take fair you're business, I terms we're QX versus than that will more driving a were Tim opportunities was the latter And thinking the reiterate share of of a existing organic took our can but growth if for healthy out, that growth we've share What us. that we clients' flow of able were rate is

attribution. is more any want it's balanced Tim you So But there a add? to very color

No, property the into casualty it, channel and and I stamping would into non-admitted business add -- just through our our that increase records increased in WSIA. that the the offices association

know we to And flow So the we're continues said, more of grow. Jeremiah as that. capturing

you Okay. And then, fiduciary extent are? do you're what you expect the what about quantify able to income? that? it your And for can the move talk Like And how to is sensitive rates? expectations to in

again, Say that Jimmy?

Fiduciary.

of On fiduciary or in or income, the -- much it should rates? be benefit what by much you rates? how in leverage to affected does how And increase have do how the rise that leverage

rates the that glad natural and invest. debt. can is biggest that and because we interest a I rate hedge on And premium of that our know got transit you but in mind. brought are dollars on sheet, caps, hedge, we've I'm rising of We've balance we it's So hundreds up everyone's inflation that have fixed rate millions got our

as doesn't though, And them all remember, belong two as you account limiting different priority what savings a with got capital and of to in money states preservation it, keep some have that, it rules and you so the Now of three. are do can to that one, a us bank. at about is

could SOFR when track XX may depend one-month this moving be safe And something this in to of it's lag conservatively, opportunity our number tighter. there's year to for model Fed say to SOFR. medium year. the yield funds rate with a around. able as is to stable doesn't we conservative on a -- get And our the minus more things, going it a balances that's and the achieve different I rates so Jimmy, doesn't on term points, this perfectly in we opportunity, would obviously, assumption yield everything rise. over or Fed year. a but And But But track, term interest basis environment, and a comfortably

then And comments hiring. could I ask talent around if on Okay. just lastly, and your

it's for hiring. a I talking thought I you competition on unemployment. about talent, a hiring Are low talking from that the just be for outside it can you inflation, Are from industry? just little have given think mentioned for you you people environment environment a good about bad would wage expand other bit? brokers? people would But

because underwriters. comp Both. a We're that problem not with performance-based other real a Other we're very managing having brokers plan. and

pay rewards so good performance. can we nice and And for exceptional

So as this platform And people look looking that's and our salary do short-term well their they're as and plan incentive to what I'm what join much is disciplined. frankly, opportunity as at, not equity growth looking program at the they're is my us, joining. then, that we have

So that's attractive well. to people as

liquid of York public, one very to attractive security listed, happened in people. almost said the going of we New the short stock Stock benefits spite the as So the market for everybody, our of is of period the everybody, in time that past, what's in the Exchange in last the

all And in in giving quite terms that of competitive to so terms the reaching combination of be costs. us of is fixed an of without opportunity hiring

Please And Scott Goldman proceed with line Sachs. question from our the comes question. with of Alex your next

taking Hi, thanks it. for

had potential and just like would Any your how M&A what current plans? one of is the pipeline. you comments on so changes First I that the capital forth have and impact looks in environment M&A on and cost

pipeline. working because said, the really as is we a And that been That's robust. question we've pipeline we welcome the

now know I we're quite by think deliberate. you that

we strategic. And -- fit. do with we strategic So deals, always do start cultural opportunistic the don't then the and we have fit we

to work that strategic terms, we be to to discussions have can see out including with have our people our cultural discussions we price, accretive that in proven going demands. fit, their So meet shareholders. et cetera, we're And now

able a prove Now little accretion. sometimes longer the it for to to be takes them

we do discussions satisfied have continue always them ability here's yes, a own. can deliverable. that, we with what of here's until we the we choice, of you it's help be So our And a can think are make could on move we we can not because we're few minds. forward. But to Like prolonged destination the that months. we for they're what have to and it do accretive those expect had And meeting once can a We is a natural this discussions us.

Thank helpful. you. That's

embedded had by underlying impacts be on how insured. help also that being is plans is side the would terms around growth? exposure that's guess interested, full-year the I'd the of would Second and you one be maybe I talked around in of of primaries something products, a property, et on I the value exposure out cetera, that? inflationary your picked think sort the about unit some what's that top-line. in since inflation's bit impacted laid I your can up changing of revenue just

definitely same they costs need thing follows as It loss is inflation, hard high carriers that And up. hearing of as a what to market could. typically up, we're Periods well. keep from the go

there's a big we -- tailwinds on the provide that's of couple that the certainly in could different year of haven't And half the potential So There's not gotten inflationary providing it, too us. terms for environment. the cute potential though. we're back a factors to boost. of But current

written be interest of is inflation Well, ago, inflation. Because distinction. of are XX brokers that social months because two this higher ago rates where part a and the coverages answer to other course, is with with out ago, of including their that moving were going up, that years really claims inflation, year paying earn

how not how fast a matter that I it goes. inflation lot It's and is now. far transitory people of think are a of saying

our this oriented really and take are But think with defines responsibility they're experienced because are careful So increase. guiding team that. to that to lower less a out make the deal have that good they increases. and can generally sure exposure Less to qualified very protecting the our way people exposure clients and assume underwriters, the professionally and brokers, our brokers I easy

hard So that real. does drive it's but exposure increase. Very quantify, to

Our question the of next from Please with question. line proceed from your comes Benguigui Barclays. Tracy

you. Thank

cadence and you lower On could quarter, affect pull growth? any mentioned quarters revenue quarter wondering are of that in the previously organic the you I'm and growth and there second the quarterly revenue opposite. the organic the seasonality the or first third perspective, you expect in first that prospects quarter fourth do forward organic second if same see

glad be they're And have QX So growth, the asked lowest and the Tracy, don't that the I'm necessarily to are just QX QX you QX organic smallest. because and biggest.

aligns growth, sometimes organic not. that sometimes but with And

QX was, So last organic year, that highest believe, look quarter. percentage I our at growth

usual of -- in to two QX we're achieved in one expect three, material timing not pattern, or to and four, any and what – material issues, like follow the and versus size we any terms So to be be the QX related we smallest; its seasonality QX so the not quarter biggest. QX. But attributing QX we're seeing

just a then, to that actually place, it. April. helpful. in market the on your Got E&S hard wave. what follow-up very really steady non-admitted next are you're through And comment just When joint Geneva Can flows earlier. risks capability seeing time Re the about That's wondering could from see I'm us that market? admitted mentioned in over Bermuda. and meaningful venture you to it you your remind goes eventually growth to if And Bermuda your you

and of specialty on the partnered discretion has in Ryan-related then this do underwriting required with Nationwide investors conscious are Re effect very appropriately. Geneva to Well,

attitude there's so a that. And on conservative

add we're retail We high-quality I really with would underwriters. have And dealing that brokers. really high-quality

E&S And make so retail we're brokers business those the comes to partnering to the placed carriers. bringing that with high-quality placed and properly with it's that they're as market, together it's sure

partnership with business. the so Nationwide XV And does A+ quality with attract

out working that's well. all quite So

just that Re in for account the me you also you remind Geneva stake Can method. equity under

maybe that So see could we growing over income? another category of source as time

No. capital No, strategy. growth a it's

you're the investment, wholly our capital our though, impact And see an was we MGU will Geneva that remember; and MGU, you relationship The Re it's Re, which the of QX in it balance our investment. of there's the related to growth to XXXX. is flow rest But benefits the as Ryan end of method sheet reinsurance that P&L as of believe, I own MGUs. the it, correct our on equity of, Tracy, which through like

out reinsurance That's But misunderstood a we working with XV very partnering carving really underwriting services a are good our they're A+ of probably a that, unusually to in carriers because we're ceding on as sheet, now them high-quality nice mission addressable And that our companies. statement. market market position really total we've providing their with talent. were capable thought And with and significantly insurance point. then result expanded the attract I that Nationwide of able balance question.

When that exceptional to relationship we high-quality So quality business. have we've as is that and balance what's joint attract you A+ you XV venture an talent the described. have very you added happening. dimension sheet, have And that's

[Operator Instructions].

next comes KBW. question questions. proceed Please Our with Meyer from your the line with of Shields

afternoon good all. and Thanks

down then hoping issues about brokers retail that could wholesale the has early consolidated their that panel brokers benefit. slow retail was the the was you exposure also when growth acquisitions? to of One you on guess, retail on, rates what those fact your talk brokers interest consolidate, maybe And the about that higher I if I have inures talk trajectory

thinking good that investors, see effect But interest are certainly wait question. on for a not example, certain yet. rates. is M&A in whispers are very delay, maybe to PE measurable that of a a a hearing if from pause -- out landscape rates, and approach related or interest M&A we It's That's the their

strategics, extent are brokers that, that their So us, M&A partners But extent for it big trading the consolidate to that retail impact. customers an have that essentially the that important could changes the than expect roll-ups have to more outlook, they're and we the a I strategic. because the that just strategics haven't yet. to thesis on impact would is, most durable strategic But them seen thing consolidation Meyer, the our

lag? the the I'm in up catastrophic an timing away Okay. show assuming other goes is In retail of That's there does M&A any have sort words, it? you of or Do immediately market, of but growth it of in helpful. scenarios, if terms slower idea

for a probably That's question Tim.

ones agency that Hi, see happy clients any roll-ups affecting can't coming equity We up are I that's be the I'd really acquiring in business the being No, publicly see to private way don't and of rolled broker these right involved we that the our slowdown clients. in mean, traded now. the and to. the are just even growth Meyer. our related M&A. in it clients, most Sure.

you underwriting being in consulting M&A managing benefits, the mostly as of is that, and fourth is to alternative the vertical with attached which other it part to then going The some know, risk. vertical we've established be a third

in both one the sectors up some of those opportunities. It's and fairly each abundant quite to us in. are ones sectors those interesting is really that of to verticals activity And those in right M&A are that with so select are opportunities But for us. strategies there up picking

turn And the the for now we closing end of over question-and-answer remarks. And to reached session. Pat Ryan back the call have I'll

We have XXXX our these discuss continued support and our and to ladies second evening. Ryan give Thank your enjoy for discussions Thanks you good We you, quarter your gentlemen, results. and and we the good you, of speaking interest in Specialty. interest thank company with when take a Operator. dialogue. and And forward always for the and look again

And your time. this lines at may and participation. you conference, your today's you disconnect concludes this Thank for