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

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

4.	Restructuring

During 2020, the Company initiated a restructuring plan after the All Risks Acquisition, to reduce costs and increase efficiencies. The restructuring plan is expected to generate annual savings of

$25.0

million.

This plan involves restructuring costs beginning on July 1, 2020, primarily consisting of employee termination benefits and retention costs. The restructuring plan will also include charges for consolidating leased office space, as well as other professional fees. Restructuring costs incurred for the three and six months ended June 30, 2021 were $3.0

million

and $10.0

million

, respectively, and cumulative restructuring costs incurred since the inception of the program were $20.8

lion

as of June 30, 2021. The Company expects to incur total restructuring costs in the range of $30.0

illion

to $35.0

million

, with

run-rate

savings expected to be realized by June 30, 2023.

The table below presents the restructuring expense incurred in the three and six months ended June 30, 2021:


	Three months ended June 30,		Six months ended June 30,
	2021		2021
Compensation and benefits	$	2,162	$	8,351
Occupancy and other costs (1)		883		1,612

Total	$	3,045	$	9,963

(1)	Occupancy and Other costs are included within General and administrative expenses within the Consolidated Statements of Income

The table below presents a summary of changes in the restructuring liability from December 31, 2020 through June 30, 2021


	Compensation and benefits			Occupancy and other costs			Total
Balance as of December 31, 2020	$	7,049		$	—		$	7,049
Accrued cost s		8,351			1,612			9,963
Payments		(13,863	)		(1,612	)		(15,475	)

Balance as of June 30, 2021	$	1,537		$	—		$	1,537