Ryan Specialty finalizes $525m acquisition of Velocity Risk
Deal News | Feb 04, 2025 | Re-Insurance News
Ryan Specialty has successfully completed the acquisition of Velocity Risk Underwriters, LLC, a Tennessee-based company focused on catastrophe-exposed property insurance, for $525 million. This acquisition from funds managed by Oaktree Capital Management, L.P. is intended to bolster Ryan Specialty’s property catastrophe portfolio. Velocity, founded in 2015, specializes in insurance for natural disasters, such as hurricanes and earthquakes, targeting middle-market and small-to-medium commercial businesses primarily in Florida, Texas, and the Southeast U.S. In 2024, Velocity is anticipated to generate revenue of $81 million. The deal includes the sale of Velocity Specialty Insurance Company, which will be acquired by FM, pending regulatory approval. Financial and legal advisors in this deal include Insurance Advisory Partners LLC, Howden Capital Markets & Advisory for Velocity, Debevoise & Plimpton LLP, J.P. Morgan Securities LLC for Ryan Specialty, Sidley Austin LLP, and Willkie Farr & Gallagher LLP for FM.
Sectors
- Insurance
- Financial Advisory
- Legal Services
Geography
- United States – The acquisition involves companies operating in different parts of the U.S., including Tennessee, Florida, and Texas.
Industry
- Insurance – The article primarily involves the acquisition of an underwriting company specializing in catastrophe risk insurance.
- Financial Advisory – Multiple financial advisory firms were involved in the transaction, highlighting the role of financial advisory services in the acquisition process.
- Legal Services – Various legal firms provided counsel for the acquisition, showing the importance of legal services in M&A activity.
Financials
- $525 million – The acquisition price paid by Ryan Specialty for Velocity Risk.
- $81 million – The approximate operating revenue generated by Velocity in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ryan Specialty | Acquirer | Company | A specialty underwriting company expanding its property catastrophe portfolio through the acquisition. |
| Velocity Risk Underwriters, LLC | Target Company | Company | An insurance provider focused on catastrophe risks acquired by Ryan Specialty. |
| Oaktree Capital Management, L.P. | Vendor | Company | Managed the funds selling Velocity Risk to Ryan Specialty. |
| FM | Acquirer of Velocity Specialty Insurance Company | Company | Commercial property mutual insurer acquiring a subsidiary of Velocity pending regulatory approval. |
| Insurance Advisory Partners LLC | Financial Advisor | Company | Provided financial advisory to Velocity and Oaktree. |
| Howden Capital Markets & Advisory | Financial Advisor | Company | Provided financial advisory to Velocity and Oaktree. |
| Debevoise & Plimpton LLP | Legal Advisor | Company | Provided legal services to Velocity and Oaktree. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Exclusive financial advisor to Ryan Specialty. |
| Sidley Austin LLP | Legal Advisor | Company | Provided legal services to Ryan Specialty. |
| Willkie Farr & Gallagher LLP | Legal Advisor | Company | Provided legal services to FM. |