Velocity: Ryan Specialty expands cat portfolio with $525 million acquisition

Ryan Specialty has agreed to acquire Nashville-based Velocity Risk Underwriters, LLC, a managing general underwriter for $525 million from Oaktree Capital Management funds. The acquisition will enhance Ryan Specialty's property catastrophe coverage as Velocity provides first-party insurance for properties exposed to catastrophic events such as storms, earthquakes, and tornadoes. Velocity, which generated $81 million in operating revenue in 2024, focuses on middle market and small to medium businesses, particularly in Florida, Texas, and the Southeast US. While the acquisition includes Velocity's main business, its wholly owned insurance carrier, Velocity Specialty Insurance Company (VSIC), will be acquired by FM, a commercial property mutual insurer, subject to regulatory approval. The transaction will see Velocity joining Ryan Specialty's Underwriting Managers division, providing it access to new markets and resources. Financial advisory services were provided by Insurance Advisory Partners LLC, Howden Capital Markets & Advisory, and J.P. Morgan, with legal counsel from Debevoise & Plimpton LLP, Sidley Austin LLP, and Willkie Farr & Gallagher LLP.