Ryan Specialty (RYAN) 10 Nov 222022 Q3 Earnings call transcript

Greetings. Welcome to the Ryan Specialty Holdings’ Third Quarter 2022 Earnings Call. At this time all participants are in listen-only mode. [Operator Instructions] Please note, this conference is being recorded.

At this time, I’ll now turn the conference over to Noah Angeletti, Head of Investor Relations and Treasurer of Ryan Specialty Holdings. begin. now may you Noah,

Good afternoon, Ryan Call. us for for thank Holdings Third you Specialty Conference joining Quarter today and XXXX Earnings

In forward-looking and afternoon, Investors undue we the addition ryanspecialty.com. forward-looking On to call, statements. press management’s at statement. your to with prepared reliance questions call, release contain remarks our filed website place SEC to has on should which a this not today’s any been answers posted earlier this may

more management’s current to review on today. as filings and forward-looking beliefs that update These cause the in subject such based these SEC. statements required contained in listeners duty factors the with to discussed expectations future, the by and to are from risks discussion could to are We statements company’s law. encourage those except uncertainties detailed We and of risk differ the actual assume no results materially

the on be measures considered a and measures call prepared is non-GAAP discussed of earnings with financial this non-GAAP the for with substitute which in isolation and included in certain in most in GAAP. GAAP financial website. information Reconciliations to closely our will release, Additionally, comparable financial accordance filed on presented be or not should SEC the accordance the these company’s with available measures are as

Chairman With that, I’d Chief Executive and over Founder, of now the Officer Specialty, the turn like Ryan. to to Ryan Pat call

to you us results. for discuss thank and joining third afternoon, our Good quarter

for Specialty who CEO Bickham. our Managers Joining President, be Turner; Miles Also around us Tim Jeremiah our joining and today’s is the of on CFO, Wuller, our call Underwriting Q&A. will is

our growth. quarter Total for platform. led grew It was by revenue differentiated XX.X% solid Specialty XX.X%, Ryan and organic a

additional third business. double-digit our addition, saw our solid adjusted continued, quarter, in Specific growth hard the to growth many in In and lines and for we market of adjusted firming largely of net income. rates achieved EBITDAC we in

D&O, Tim and company we rapid decline was shortly. last anticipated notable upon rate beyond noted touch one quarter, which As in which saw the will exception public market we what the quarter a and

quarter our despite the Importantly, another team, about comp of at generate offering we strength and Ryan product our XXXX built winning services exceptional our the and speaks culture ability double-digit headwind to diverse this volumes organic third and the of quarter have Specialty. growth

we’ve risks As are previously, noted industries becoming complex. only more across

largely and expertise compulsory Our we clients are the products bring. value our

but three are Our carry acknowledge producers solutions, insurance our clients half our seeing XXXX. with we continue least that increasingly and and the to areas that we where trading headwinds will to of specifically first in provide environment partners the at challenging likely want innovative macroeconomic into

which while quarter, standout the the in the the marketplace began towards growth to insurance the by is a state stamping flow end E&S backed within a reports. of see rate remains deceleration inbound we of industry, First,

Second, a functioning liability construction deceleration project-based with policies, higher highly along markets. economic on transaction are significantly certain M&A that faster-than-anticipated rely coupled delaying policies interest with debt rates

new capacity This significantly. impact book. for place our hardening, activity the has leading brokers also supply business when time of years Third, some market entered changing in and directly. the IPO a this had led D&O increased is market on of rate public additional professional at to decrease opportunities have market to down to lines After in an a rate conditions retail

past. our as successfully execute that through our well. are to through manage And in confident leadership economic positioned experience cycle collective Our has the game the team to is well we different plan cycles allowed us

with to on market client note centricity match to among pleased our be needs also industry-leading a improve, to brokers are tireless that efforts to productivity continues testament their and expertise. We to laser-focused

and take advantage continue prudently add gaining our deep E&S flow to to also industry-leading bench the talent team decile and share. continuing to are market to We resilient onboard top of

our robust differentiate our larger acquisitions and we Additionally, additional to both capabilities. and for look tuck-ins platform enhance and pipeline M&A remains as opportunities,

pursuit our in are be strategic environment when must in particularly and a Every strong disciplined accretive. acquisition met. remain forward cultural of our the will acquisitions, We all current criteria only as move fit, we

results, Our robust proven discipline is in throughout acquisitions bolstered period. require do given any that by we our year to which core have not achieve this growth

quickly As flexible we long pivot an resilient to we adapt positioned environment. we increasingly challenging operating page us over on macroeconomic believe model our well succeed the begin that to and given XXXX, turn the term remain enables to to and

extremely needs times confident We right in as their remain work value trading to their uncertainty solutions we to the remains valuable anticipate that the protect tirelessly bring insurance of and we partners, particularly nonetheless risks. to our provide

E&S in as annual double-digit As organic expect the grow allow growth complex. becomes has This, continue with should the market other generate riskier us the past, for and secular to we along will to to drivers, come. more years world it growth

at solid surpass effort Specialty another their started Ryan to In we incredible and year. expectations of when summary, team entire XXXX quarter proud as led from remain the I will our our

Tim? it I’ll to Now, over turn Tim.

Pat. you very much, Thank

solid risks in which rise Pat continues critical innovating an solutions driven increasingly in a and This expansion across was by backed role up insurance and for is challenging another specialties, BEST’s recent technology. evolving demand highlighted serve constantly highlighted, quarter our rapidly to and E&S As it the A.M. landscape. report, by market the sustained E&S

wholesale to a trends. I tens call, to of and caused take lines Since to of strong market. of property dollars storm in was achieved another wishes damage. position non-admitted those Hurricane would positive into of of across minute Once Ian, to impacted this our specialties, the a our all are quarter business. Diving send into continue were best of strongest billions horrible to like of again, property capitalize a casualty devastating growth driver prime brokerage new disaster. last that these our our business specialty CAT We the on by

these to higher more to leading well capacity factors previously even upcoming during these are believe the along with E&S as believe loss lead We into further de-risk reinsurers shrinking discussed as types events will we renewal flow portfolios market cycles. Ultimately, as of we’ve their themes rates.

from increased non-CAT markets. other flow expect We also

significant need our and demand. experience There breadth for high and in will be solutions products in of E&S XXXX, depth will and remain a

We in to in develop in these high-hazard brokerage innovative will authority these our solutions underwriting to take delegated niches opportunities. and businesses order continue of incoming advantage

a the be quarter. Flow Cyber performer E&S was the strong into in continued channel. robust to

underwriting our of cyber As highly capacity our new facility announcement noted delegated with our excess previously, by we by as evidenced brokers million It’s complement a exclusive $XX supported from carriers. rated authorities demonstrates our brokers choice their be of another how behalf innovating as a delegated well continues to top and carrier it capital. example authority our clients as for a on staying of power

practice, sizable to Our trucking, particularly in see transportation continues flows.

well positioned capitalize We in continue opportunities. on line and this win growth to to remain additional business

Our in well practice construction quarter. the performed

are of We by encouraged submissions current the the projects. we’re pipeline that seeing in

the that begun interest in due project delayed increase to rapid note we’ve and should observe rates a slowdown starts to we However, in the economy.

as D&O headwinds Pat the practice our quarter some experienced well. noted, As company in public

As lines. calls. decreases earlier on observe in forces the mitigating company on see line D&O market significant rate began strong prior and These impact decreases growth to our that referenced year had to Pat the noted have the and our quarter, In began a of second pace this call, we we what are prior during in other referenced in quarter. that we third accelerated. rate This the the in public

D&O in these public to expect trends at into We continue mid-XXXX. company least

solid we reduced was saw are In experienced which renewals. for platform has This to includes growth Binding Authority our capacity historically which place lines area continue small business commercial we economically growth in confident Authority, Binding by an specialty, of in that over we the in the focus sensitive. term. personal constraints, upcoming that carrier been binding, and this our has However, have our to traditional team line grow long

Additionally, see beginning and a we we’ve the to consolidation panel growth just execute. opportunity well this long and a is fruit. quarters mentioned to steady of that as We are positioned bear opportunity number for

results capital Our another in for despite liability Underwriting underwriting debt M&A resulting partners. quarter being deliver and solid carrier activity, our continuing posted bound less transactional while less specialty business markets to trading Management dislocated strong

Nationwide. We our seeing novos Harleysville continued York through New de are arrangement our also progress with with of

many notable D&O that seeing and a the rates E&S In flattening firm are terms we in in rate. business, where of of the earlier Cyber, market, of company with public classes mentioned Pat exception remains pricing

business As opportunity, growth we’ve said the non-admitted expect a of to several market Specialty’s into significant continue times be to flow than the before, rate. Ryan we of more driver so

Bickham, now call Thank that, to who will turn Financial With I of financial on more third quarter. Jeremiah results Officer, you the give you. detail will our our Chief over the

most revenue of of to Thank comp. million, tailwinds despite solid which E&S you, QX, XX.X%, and XX.X% new reflecting market quarter in ongoing business nearly $XXX substantial we revenue period-over-period amount Tim. was fueled win another year-over-year by total XX% the the a organic grew growth at In of continuing the to

was XXXX diluted per $X.XX QX for or share. or for million to income income $XX unusual Adjusted X% $XX share. which items, other IPO-related the $X.XX excludes Net increased and quarter, net per million period-over-period diluted

million, the Adjusted XX% adjusted third for period-over-period EBITDAC declined to basis EBITDAC XXX quarter grew while $XXX to margin points XX.X%.

and the the fiduciary points income. XXXX, EBITDAC of continuing normalized continued by to proven was T&E, in also XXX again, relative of adjusted our quarter, margin higher the run to noted model business return It be margin rate levels investments in T&E over was impacted and Our a of by improved that years. QX basis full which to showing up our scalability had should the

industry’s prudently will to broking of where both hiring underwriting clear of continue there the we top practice are business. our finding opportunities and in grow lines forward, Moving talent

intend to platform, growth. industry-leading fully while our revenue We to in sustainable investing us which producing organic margins also continue allows generate

to continue infrastructure industry do talent signs for to accretive. and we As ensure are we in additional environment the that will and monitor our of closely macroeconomic slowing so, investments

beginning fortified maintain to rate us to that year $XXX XX, cash highlight at revolving our our a cycle September of sources. undrawn sheet the which our to Furthermore, this steep credit To want financial in of raise facilities. capital remains it million to of has addition been of position. equivalents always of before cash diversified million funding with end, began, the important $XXX strong balance timely as hikes and I our

XXXX. we payments record to rate interest GAAP and expect amortization of time, net $XX rate QX are cap. for We operating is for interest million the on to funds which first our our under of includes on interest receive cap beginning our interest approximately And expense, income

expense Again, hedge mitigated rising SOFR, to These one yield approximately increased our less the on natural fiduciary income fiduciary important that by mindful rate benefit from which balances, investment impact continue term it to fiduciary month the generate is is soft factors of balances balances, well the be interest as to at This approximately and environment. is not as an the curve our yield SG&A yield points. basis or that fiduciary earnings spread earn in permitted SOFR some forward are expense. fees XX that to lag bank may that which instead to offset earn

it that our remains adjusted as step to remain M&A Taking pipeline, given M&A in our EBITDAC disciplined is is exceptional robust, of months, back, organic will QX. mentioned, in close pipeline us the through a we our Additionally, we that important we generated note it But sizable timing first unlikely growth deal healthy our and for margin. a Pat approach. nine and

As the Pat Ryan much long-term intact. Tim remains story mentioned, very and

guidance impacting previous However, XX.X%. from revenue M&A current year XX.X% of D&O company to XX.X% growth the public are XXXX full in to organic transaction lowering guide and XX.X% we liability our range construction given activity, starts headwinds macroeconomic to and headwinds for

revenue for the This full changes difficult implies expectations market it at macroeconomic guide these midpoint predict QX. growth timing the beginning for of the degree is and organic range of XXXX was to where in when a impacts. year were our and of mid-single-digit ahead year This

XX.X%. In the guide addition, our and XX.X% EBITDAC now between we of are margin be from adjusted XX.X% range the to XXXX for year to guiding XX.X% full previous

our pleased the summary, year-to-date coming as In economic on focused the ahead through cycle. we with are we performance and remain path very navigate

you With for Operator? for to Q&A. time and the up that, we your open call thank would like

your with question Thank the Elyse Instructions] is line coming you. our Wells of with Fargo. Please from Greenspan question. First proceed And [Operator

first sounds slowdown you consistent that M&A and in mid-single for Is you comments, growth organic question, from there that these calling thanks. to public the over lines in looking D&O, evening. is still Because it having are some in growth. Good guys an quarter. Hi a the concentration digits organic fourth quarter? you’re you’re out the expecting other fourth My in Pat’s double-digit of like guys headwinds said

XXXX. So, up business next to would we that level impacting to you fourth wondering quarter see pick in expect I’m mix year? could things how versus is what the just

you thank your for Elyse, question.

an on basis. are, double-digit still annual we in fact, growers So

are line, We at even down about that overall your To I quarter look up said of you trend. of and extrapolate product about single D&O, question talking concentration, public growth, XX% QX. any including And in the a or book. quarters we’ve say our can’t like no XX% can is plus

a have of had specifically, very And We D&O public dramatically. specialties. actually growth portfolio and It’s products contribution. year, this quarter, overall well-diversified it an last just shrank outsized

But our So in it went that can to one from contributor very is confident a we professional continue entire being D&O organic. our grow to drag a lines that on in and strong long term. we are that we’re practice

that XXXX could the And exposure, big a next tailwind I market think would us give the property that hurricane think of a when you growth terms your year? in and book? sense could post to then of your be how hardening we that If about And Ian. is

I D&O in underwriting The property So risk not book is of book. exposure on and careful our seeing be related to market, our the and of Tim to We in property want well, think to percentage of positioned the impacts multiples what many exposure. best don’t in speak that but percentage, business and that. to say, is exposure, insinuate many, disclose that terms use it’s overall we’re our terms is of material. exact the I And

The catastrophic very property, I’d be too. for property of is happy practice much large forecast group part Yes, our hardening. a

channel market the hard increase flow and extremely XXXX expect of into business difficult substantially. into our We and the get to going to

of And take the to on we’re to we up as driver business a will it go it ready it. absorb be challenge. big But and for capture XXXX. new set into us very We’re

then last And just one. one maybe

guys that I of the you and And business flow on specific ramifications property of You certain reverse market. guess that? you Ian had could mentioned slowdown the a bit expect to in E&S Was lines? little business that a to saw market hurricane that the would

slowdown into the our We’ve the the into And flow seen flowing stamping in remains a through very very slight slight. very indication double-digit, offices, in of month channel flow a the strong, world. last

flow let-up casualty. storm increase property, effects that of seeing no affirming So the an signs we in see here and and general again, already in in of quarter. And can the we’re this

color. the for Thanks

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

thank Hi, for taking you my questions.

think of slower come you Are in organic first The range growth in the half? double-digit commentary that first should see flow... one organic from the on we follow-up half could to to that of magnitude in stronger of is of Or trying the maybe we figure a the year. first out offset below the an should be kind expecting property growth? kind Just about how

glitches getting the Jeremiah. on of it’s at side, the hey, this mentioned The actually beginning operator Weston, same Q&A, we’re too. that

you So question? mind -- Would broke I you repeating up. the

the from better? headset Is switching Yes, too. this

far, so Yes, good. so

see guide that double-digit comment you’ve the maybe we annual trends accelerating historically to on in offset expecting the growth slowdown know of Great. the first I would an organic the you’re of these year. growth, a market? could the was hoping continue? organic but Or you from kind in single-digit first half magnitude partial I could half if see we property potentially of

between question. a now February, change a our thesis, Fair XXXX our when most keep no a to points there. to premature come our to Like couple It position, and you bit in competitive talk value-add mind to back obviously we’ll But guidance. And in our lot strategy, little is of more then. about clients, Weston. importantly, we our know

which life talk of we organic it’s decline, produced for our -- about And a by All company. lot and of our Kryptonite. Like double-digit it on a we’re in specifically in the our are very to for lot through years in managed We’ve talked those basis, going D&O, remarks, rate part way, year much intact. that. annual through growth an and not out it’s year about

we an will that the whipsaw now. actually macroeconomic D&O, headwind, middle also And impact we is you of sorry, we known the facing is we as factors year. And are this -- property in got cycle to in that be negative. all to I play, that and next all play through unknown by So, especially public think not as beginning benefit terms year, companies unique. But D&O right very mentioned, have this variables expected we’re talking market, get when think but have Tim I’m The that it are the in next about role of And duration. will fairly we hard and said, us. believe a

And as many book. multiples D&O I of book our our said, property is

to concern. And so not convey trying we’re

an As on I annual we growers double-digit still basis. organic said, are

be to It’s predict uncertainty transparent all the that are of change lot there. there’s just industry. to trying rates that difficult our of We’re a out affecting

so bullish we the to the And have prudent we’re growth and always, expectations, prospects still like very overall. to of setting our but long-term about regards be with market durability E&S

follow-up a of related to outperformed first How liability? I and with was transactions. And of transaction and a out kind much some of Is organic timing past there to way XQ had of you book half outperformed lumpy the XQ called in quantify year? Great. in that know D&O to that. and the the the much how the that

hear can half first you because that of missed your us hope you we I question. can than the hear better we Weston,

D&O was quantify question to a maybe the how led in really year. to of The of this the first way much there the Is transaction that? or outperformance M&A liability half

year. transaction there. speak call, start, of theme Wuller, bigger who and the here that then trends I our some say who’s manages last Miles in is the would the two the will liability D&O going But to – I’m on to happened surge MGUs

drag much more last very was modestly started it our QX at adjusted and more we’re expectations a to growth year; a actually that, but and an And very, as exceptionally result year. actually And end of the accelerated – than as even it a it for facing it was contributor we anticipated. HX our we this so And of comp. than difficult

the side, fairly fact HX of just a deals, I’m impact IPO closing those that moderating normal didn’t to know activity, down an you the M&A year the that on don’t had I that there’s now deals On this we sorry, We closing the the there’s no that’s QX. HX have and And because despite those activity, M&A we to timing to have reversing. be outsized didn’t M&A substantial Miles, activity soon term. anytime really that, if start us short rates or other to don’t at because affecting But appear any least until assume coming add for want persists trend. been color

from absolutely. the No, our we international both U.S. within practice I benefit and mean portfolio.

So last started decline environment, we’ve M&A down the on have as finding to Year-to-date, think recessionary rightly compared deals on submissions in I market clearing to more deals. to is from XX-days, here much market grow either drifting keeping continued as a price flagged the achieve somewhat not or that year to we’ve linked as the XX% sellers global geography. but to this leader, depending year XX% rate, and to new last bringing

of both up. capital happy optimal that a signed coverage the say to as our is accepted. recorded And is levels deals growth highlighted, we’ve are I’m rates debt needed functioning to and markets Tim have Pat in and inventory record reasonably keep

to await as However, are they the financing. deals close waiting

saw by the by growth you Binding organic and know XQ. I kind of hoping underwriting your and Underwriting, MGU was in help don’t could you the across the size what are me. one expectations growth give I for one last each And Great. in practice. you of quarter kind

one, you do on pick take Miles, want that Jeremiah, up Underwriting. then can the you to

underwriting We Weston can growth binding, see by it brokerage specialty. queue, the in and managers. revenue actually out break So you by

more than we’ve double-digit specialties The And not, talking As all of often them before, differently. are these of growth have they do. affecting them each headwinds we’re said capabilities. about

a So that’s the binding SME mostly effecter. market slowdown, specialty

just liability, two public specialties on managers. the majority more in an Miles hitting and going of that’s talked brokerage then underwriting the that’s there transaction What’s than the other that impact about, D&O,

we’re that bit continue worse. QX in but we’re what all get – So headwinds little not only actually that we assuming a the experiencing experienced for is QX

taking Great. Thanks for my questions.

Thank you.

line question the next Please Sachs. Cox comes Rob Our from questions. with of with Goldman proceed your

noticed XQ. by to XX-Q, after contingent at had if Hey, and the question was wondering supplemental I they in just pretty solidly all and a the I And I it on activity declined quarter. related growing commissions. catastrophe in was was what XX% driven year-over-year in just that

You related broke you up at to the Did ask if it end. was Ian?

Yes.

Hello.

related was to Yes, yes? yes. It’s if activity, it catastrophe

a year as The of do up issue and no. like issue. next is to answer beyond, a The timing expect quarter-over-quarter I line, the show down we It’s timing anything. mostly until although more Ian effects immaterial. The is, said, won’t than that impact be really

And the we our often restructured commission, receive. actually sometimes, our what of altered material year that one we restructure would and a we commission improve this normally to timing profit contingent arrangements,

commission So specifically no impact front, related material Ian. to negative contingent on the

Miles, do you want to add anything to...

Well, as strong a Jeremiah no, profit year-to-date. of recent year reflective that’s commissions mentioned, And years. we’re having for

with Our view extremely are is forward-looking Ian pleased we view on of actually results so far. loss our that

to We’re activity we’re and outperform industry the on dramatically results, claims the expecting end. mild actually, in based to date

So we’re leading a as into counting next future year. on benefit that

add our to binding well. And exceptionally would within RT perform authorities continue I

track. strong, we’re contingency very and Our forecast on remains

unit. working in So that very everything out well is

in you. kind the at this in all half Thank And of quarter the impacted it. then placements of growth was lower the first quarter year? Got property versus by

broke I’m again, sorry the for part question. you first up to ask it your of

versus impacted half of first the lower property year? XQ growth Was Yes. the placements in by

I believe No so. don’t

Got Thanks. it.

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

Good I’m through clearly. Thanks. evening. Great. hope I coming

Fingers good. far, So crossed. so

All right. Okay.

at quarter follow Just up Rob’s impact hoping to that growth question. did contingents; in on organic the all? year-over-year Did Here's the declining

end of calculation. heard the up growth commissions I contingent think have essence. but picked organic your are out question, the the only I I of back No. stripped

to impact no organic. So

would that’s personal headwind the maybe a the I Okay. of maybe lines little Perfect. as – call that a you of or Tim is guess the for – right because a bit – was for Miles also now? hoping issues bit of more one impact this out capacity on I of color

Yes.

was But some wind Our flood personal a landscape affected write prior division Ian. binding of business and competitive fourth to to lines expect and quarter up we’ve geared for where our new – to it capacity needs their smaller to head we to as ability the within XXXX. and be be and division, remedied that be we much that, into short the capacity it

So it that expect back and normal we’ve fixed to we to be capacity.

Do Perfect. helpful. last between that connection those That connected and is Okay. a see overall what’s expectations. Or of at then is in you function And terms incremental P&C? just Are the competitiveness any flow question, a pace? just weakening economic environment deal happening all? or within of

and I’m competitiveness repeat? slowdown there between I flow. heard, M&A? to connection deal a sorry, be is or that Is risk placed like the pace need that economic of to you Meyer. and related Would the

So terms of be placed. risk needs in that to

seeing that separate specialty the you do are of right less potential We business coinciding see just slowdown? now? go channel as economic to and a the Or consequence as

not impact We identified have really see as that flow. separate on any and

As we a the have slight that space. double very hardly strong non-admitted said, in the results office the last of in, deceleration, flow come months digit, very, showed very coming detectable, into couple still top stamping

much. you All very right. Perfect. Thank

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

savings XX now that by what driving top your is you EBITDAC line top growth lower seeing points, You growth, pressure? lower end margin the on focusing you’re of the with took expense that? line more guide up basis Are

XX points managing We’re decent months may seem that bottom line, tight, represents the to have a year. in And but of basis Tracy. on the left amount always two variability given only it we focused

of We hiring context line the are definitely in decisions in investment expectations. making top

potentially of the new been year. we bit where as has pretty the beginning income acquisition year spent we a investment a quite as XX. it’s already expected. sense But thought talent higher to November have we haven’t given we’re And frankly, that on the good going of in We end we much could than little

that you’re then D&O, longer a there no just of. programs any Got the wondering, it. And part I’m be were may on

it’s on seeing So to something with not pressures we’re more pricing maybe business? the your specific

grew kept the carriers. great from year. actually intact. all of We last We’ve delivered results We’ve respond I’ll facilities Underwriting our to capacity our Managers. our

to nothing us. there’s unique no, so And

We the it. not pullback we’re marketplace, have just chase overall to capacity, in going the capability. and an the It’s

you. Thank

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

– quarter. so better on you’re organic a versus on is think third so growth we implying you in quarter Can actual went quarter a the idea quarter how of and as early that quantify just as first you us the give looking. was just the maybe Hi, what XQ growth sense your the through slowed or I late better the in get growth,

and account are we Well, November definitely into our are is through month. QX XX Jimmy, it seen to for with given taking we And But we’ve by that not going said, today break persist growth can. we’re outlook out already, everything sure. as I rate MO It’s inflects. transparent things we assuming where change difficult us and But sticking we’re actually accelerate. down prudent to slowed being really as QX predict of that as of that a all our in actually the to

into exposures lot market. the the short lines short outlook business obviously, E&S, term, end little going if in the – of about that standard sort to with affect market Okay. business down Would grown Do because for is than overall into a standard even could And then if good. up in of your come the into term? at the E&S think back or of flow even long-term flattens growth that’s if out. faster a primary all been E&S and if the slows market the partly E&S bit the market the and have business, the pricing it’s you you the think in coming some market Like that the

what understood asking fully the I would sure any the that is non-admitted the have business? not impact question, on you’re I into flow think, I’m but

exactly. Yes,

the Yes. to heavy coming impact their the continue they’re I portfolios channel. our flow of standard I the social into sheets balance don’t from losses affecting warming global and that that de-risking and believe directly believe so. inflation markets continually

to needs is think it’s talk question, appropriate. and explained about Cyber industry commerce the your general. with because news of be for some This Jimmy, good really in Miles Pat. I in terms for Cyber

why Cyber? don’t explain you So Miles, this

Yes, absolutely.

Jimmy. E&S So that market. I the doubled question, growth dovetailing the to XX% your and actually met U.S. as Cyber Last in market need an Cyber only example. mean, growing using admitted at year, XXX% relative by

might XXXX today. more Well, much the uninsured still but lead market even growth - as E&S to in relevant dramatic, XX% So doubling the continue be this in the remains of will way. believe Cyber class? excuse a is that not Why market, me, despite this of we only as as XX%

So there’s to huge short-term a trends. regardless us pursue of runway for pricing

some it so monitoring as is pricing underway. exactly, market the dynamics. we But closely. is are we’ve from hard benefit Again, another class flattening There it relates to

to limit war Our management date. underwriting hasn’t in total loss But shock to facilities has associated market, improving in within Risk slowly companies basis. premium grow been in enabled and available loss an risk is premium out invested us to trends. have the Ukraine market and on there resulting delegate to the related both write loss as the our control, leaking of

our overall addressable stages this competition in And market. seeing has so the early we change in a are adequacy is we’re that environment increase there that view improved of and stabilizing penetrating but rate ultimately, doesn’t carrier where an

investing of growing more have Sure. you growth the many just had versus in while terms fast. preference versus think companies, the for very I in brokers the and of a you And lastly, margins, business retail of some were mature

terms as expanded down? assume been growth be your growth. haven’t you we as are spending consistent in should focus in how the change Or in the But margins you’ve past have – of a of normally expanded think much of in to I growth in slows business? if sort investing revenue would significant is with terms they So going given

our going going the is growth. we’re continue Jimmy, Hi answer necessary to investments organic – is plan, balancing, short to which we’re stick to outsized making game to

what While managing for it every necessarily, reported most basis, even in doesn’t mean It that to time. but every a margin. margin on is here are scaling and on won’t growing show we It over we’re going quarter. for shooting record years year mean

QX, huge we’re adapting already base Unfortunately, variable QX And said for lower Tracy’s because begin and cost just beginning we’re expected we’ve of I as a practice adapt. And being growth to to our flexible. our in question, lower our in in starters, with amount and is growth with. fortunate answering got

stick plan. to we’re going So our to

One comment by Miles. last

is E&S. Yes. it And to of an place A that the commercial Jimmy, as business. is just fulsome – continues growth in to Cyber example, on lot be hardest

However, in is some some business, of admitted the small there for competition and in can lines cases. medium solve that increasing the

So fraying the to of there end that market. might in start be

for but it’s a more supply Yes pretty the to and primary way of Cyber a is than companies. is guys? larger how risk. – understandable for capital small right? But – of that Cyber market, it market is lot X% you then because than the like cover it’s there demand Is the there’s

to Jeremiah’s back response. Well,

benefit unit XX the have the National We Programs with MGUs niches. of XX in the family in

any a So particular we’re in not dependent on upside the with practice of we family. But feel product material the have lot we within a market. addressing

you. Thank

Thank you.

your questions. with BMO. Zaremski with from next line proceed The is of Please question Mike the

to full this I Hey good that on in want know on thinking year we back from on evening. there’s XXXX. out Or basis operations be flow you from the cash operations. if grows Questions call into especially But there’s a out. to call? need noise should curious anything we or that flows cash

bringing Mike. thank So for that up, you

This reductions, flow. out they’re because was employees, as example X-figure P&L run non-equity guide way, to by to all-risk quarter comp. of this they’re the Operating the through by is holders, which, our we earn-outs payment but view a plan, quarter forces flow cash LTIP are perfect price cash impacted paid GAAP XXX – towards you the essentially people the purchase a that significantly to why finish adjusted

lot happy. because a love new family makes and sticky, absolutely we of members it that it’s And

is going this concept away. So not

in as We’re of going example these us to deals great have to view can. traditional operating But many put going of a for quite why noise some in flow as we is cash a it’s time.

is you – are And or for I terms you competition really terms the and impacting do see looking of that That’s Okay. guys in deals deals helpful. yet? very days of higher curious, marketplace rates, not just at but in it’s M&A know interest early

We robust brokerage, and pipeline have a in underwriting both managing benefits. very

a we’ve not said, doing deal. reacting been very we’ve to As just and disciplined

– a discussions. had have done lot of a we’ve lot So of

some We have strategic discussion significant quite we’re people and opportunities. with in

bring but activity, M&A anything our opportunities won’t strategic calendar good we’re next to on year. bullish a in we’re we position this in So close but year,

been And the robust multiples. in market has still of terms

we And we our companies of by avoided on in we’ve valuation. multiples But the look so total what bringing And the excess terms be enterprise look in. at consider and at have we strategy to said, also we can as the I these and culture impact the accretion.

in value cost there And so We significant. at kind valuation say what look are are that historically have But revenue been synergies. material. price never of revenue the synergies of we’ll and our very synergies

If our of acquisition. increases. have productivity you the outperformed expectations take terms the They in brokers All Risks

something revenue value we as that look we synergy pay So is we don’t for our opportunity, on but potential that. for

the because to how saw We got in the related over of million and sure Mike, part our on us like would-be sheet. we we’ve bond great raised bidders. positions feel you of firepower And And we’re other to your January. question balance spot I’m cash versus actually that in $XXX a

undrawn have levered than X.Xtimes we’re undrawn at - million an revolver, We less $XXX net.

it’s new on is like to for not and advantage we’re competing go large if going our us. capital, But like as property has So that tuck-in raise an deals. to competition for important be a

could that really without we fortunate down big right capital. We’re now new targets take raising

deals, think in it As for multiples big haven’t edge. yet. seen – a hasn’t we But Pat impact could said, we us give it huge

that could one [indiscernible], to the one deal close year-end. just It’s like we I’d of comment. my say before possible

Here we are almost in November.

attractive I am opportunities. we that, have So forecasting some but not

you. Thank

are Pat there the closing questions. Thank this to no I’ll over you. Ryan remarks. time, turn call additional At for

particularly Specialty. of your many to we you your all you and Thanks for Thank but Ryan fourth days, our for discussing speaking support look your quarter next support in We interest and with few forward look of interest. the XXXX results. to continued forward

today’s This conference. will conclude

for this time. You your Thank at you may disconnect your participation. lines