Ryan Specialty Quarterly report pursuant to Section 13 or 15(d)

Restructuring

9 Months Ended

Sep. 30, 2024

In February 2023, the Company initiated the ACCELERATE 2025 program that will enable continued growth, drive

innovation, and deliver sustainable productivity improvements over the long term. The restructuring plan aims to reduce

costs and increase efficiencies through a focus on optimizing the Company’s operations and technology. In its expanded

form, the restructuring plan is expected to incur total restructuring costs of approximately $110.0 million through

December 31, 2024, and to generate annual savings of approximately $60.0 million in 2025. The total expected costs of the

plan include $55.0 million related to operations and technology optimization, $40.0 million related to employee

compensation and benefits, and $15.0 million related to asset impairment and other termination costs.

The table below presents the restructuring expense for the program incurred:


	Three Months Ended September 30,		Nine Months Ended September 30,		Inception-to- Date
	2024	2023	2024	2023	As of September 30, 2024
Operations and technology optimization	$6,828	$10,824	$17,714	$18,529	$43,709
Compensation and benefits	3,680	5,109	29,800	6,709	41,120
Asset impairment and other termination costs	318	544	318	11,057	11,375
Total	$10,826	$16,477	$47,832	$36,295	$96,204

For the three months ended September 30, 2024 and 2023, the Company recognized restructuring expenses of $5.7 million

and $11.6 million, respectively, including contractor costs, in Compensation and benefits, and $5.1 million and $4.9

million, respectively, in General and administrative expense on the Consolidated Statements of Income (Loss). For the nine

months ended September 30, 2024 and 2023, the Company recognized restructuring expenses of $35.7 million and $13.4

million, respectively, including contractor costs, in Compensation and benefits, and $12.1 million and $22.9 million,

respectively, in General and administrative expense on the Consolidated Statements of Income (Loss).

The table below presents a summary of changes in the restructuring liability:


	Operations and Technology Optimization	Compensation and Benefits	Asset Impairment and Other Termination Costs	Total
Balance at December 31, 2023	$5,886	$1,080	$—	$6,966
Accrued costs	36,140	29,800	318	66,258
Payments	(29,649)	(27,936)	—	(57,585)
Non-cash adjustments	—	—	(318)	(318)
Balance at September 30, 2024	$12,377	$2,944	$—	$15,321

Accrued costs in the table above include both costs expensed and capitalized during the period. As of September 30, 2024

and December 31, 2023, $11.1 million and $5.3 million, respectively, of the restructuring liability was included in

Accounts payable and accrued liabilities and $4.2 million and $1.7 million, respectively, was included in Current Accrued

compensation on the Consolidated Balance Sheets.