Basis of Presentation |
12 Months Ended |
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Dec. 31, 2024 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation |
BASIS OF PRESENTATION Nature of Operations
Ryan Specialty Holdings, Inc., (the “Company”) is a service provider of specialty products and solutions for insurance
brokers, agents, and carriers. These services encompass distribution, underwriting, product development, administration,
and risk management by acting as a wholesale broker and a managing underwriter or a program administrator with
delegated authority from insurance carriers. The Company’s offerings cover a wide variety of sectors including
commercial, industrial, institutional, governmental, and personal through one operating segment, Ryan Specialty. With the
exception of the Company’s equity method investment, the Company does not take on any underwriting risk.
The Company is headquartered in Chicago, Illinois, and has operations in the United States, the United Kingdom, Europe,
Canada, India, and Singapore. The Company’s Class A common stock is traded on the New York Stock Exchange under
the ticker symbol “RYAN”.
Organization
Ryan Specialty Holdings, Inc., was formed as a Delaware corporation on March 5, 2021, for the purpose of completing an
IPO and to carry on the business of the LLC. New Ryan Specialty, LLC, or New LLC, was formed as a Delaware limited
liability company on April 20, 2021, for the purpose of becoming, subsequent to our IPO, an intermediate holding
company between Ryan Specialty Holdings, Inc., and the LLC. The Company is the sole managing member of New LLC.
New LLC is a holding company with its sole material asset being a controlling equity interest in the LLC. The Company
operates and controls the business and affairs of the LLC through New LLC and, through the LLC, conducts its business.
Accordingly, the Company consolidates the financial results of New LLC, and therefore the LLC, and reports the non-
controlling interests of New LLC’s Common Units on its consolidated financial statements. As the LLC is substantively
the same as New LLC, for the purpose of this document, we will refer to both New LLC and the LLC as the “LLC”. As of
December 31, 2024, the Company owned 47.9% of the outstanding LLC Common Units.
Basis of Presentation
The accompanying consolidated financial statements and notes thereto have been prepared in accordance with U.S. GAAP.
The consolidated financial statements include the Company’s accounts and those of all controlled subsidiaries. In the
opinion of management, the consolidated financial statements include all normal recurring adjustments necessary to present
fairly the Company’s consolidated financial position, results of operations, and cash flows for all periods presented. Certain
prior period amounts in the Consolidated Statements of Cash Flows have been reclassified to conform to the current year
presentation.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries that it controls due to
ownership of a majority voting interest or pursuant to variable interest entity (“VIE”) accounting. All intercompany
transactions and balances have been eliminated in consolidation.
The Company, through its intermediate holding company, New LLC, owns a minority economic interest in, and operates
and controls the businesses and affairs of, the LLC. The LLC is a VIE of the Company and the Company is the primary
beneficiary of the LLC as the Company has both the power to direct the activities that most significantly impact the LLC’s
economic performance and has the obligation to absorb losses of, and receive benefits from, the LLC, which could be
significant to the Company. Accordingly, the Company has prepared these consolidated financial statements in accordance
with Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). ASC 810 requires that if an entity is
the primary beneficiary of a VIE, the assets, liabilities, and results of operations of the VIE should be included in the
consolidated financial statements of such entity. The Company’s relationship with the LLC results in no recourse to the
general credit of the Company and the Company has no contractual requirement to provide financial support to the LLC.
The Company shares in the income and losses of the LLC in direct proportion to the Company’s ownership percentage.
Use of Estimates
The preparation of the consolidated financial statements and notes thereto requires management to make estimates,
judgments, and assumptions that affect the amounts reported in the consolidated financial statements and in the notes
thereto. Such estimates and assumptions could change in the future as circumstances change or more information becomes
available, which could affect the amounts reported and disclosed herein.
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