Annual report pursuant to Section 13 and 15(d)

Revenue from Contracts With Customers

v3.22.0.1
Revenue from Contracts With Customers
 12 Months Ended
Dec. 31, 2021
Disaggregation Of Revenue [Abstract]  
Revenue from Contracts with Customers
3.
Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue from contracts with customers by Specialty:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Wholesale Brokerage

 

$

931,979

 

 

$

673,090

 

 

$

508,503

 

Binding Authority

 

 

209,622

 

 

 

144,837

 

 

 

103,853

 

Underwriting Management

 

 

290,578

 

 

 

198,758

 

 

 

146,092

 

Total Net commissions and fees

 

$

1,432,179

 

 

$

1,016,685

 

 

$

758,448

 

 

In 2021, certain business previously transacted by Ryan Specialty's underwriting managers was renegotiated to a wholesale binding authority contract. For comparability, revenues in Binding Authority have been increased by

$13.0 million and $8.9 million in 2020 and 2019, respectively, with an offset to revenues in Underwriting Management.

 

Contract Balances

Contract assets, which arise from the Company’s volume-based commissions, are included within Commissions and fees receivable – net in the Consolidated Balance Sheets. The contract asset balance was $8.8 million and $6.7 million as of December 31, 2021 and 2020, respectively. For contract assets, payment is typically due within one year of the completed performance obligation. The contract liability balance, which is included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $1.1 million as of December 31, 2021 and there were no contract liabilities recognized as of December 31, 2020. The increase in the contract liability balance in the current year is due to the Keystone acquisition that occurred on December 31, 2021; see Note 4, Merger and Acquisition Activity for information on the acquisition.