Quarterly report [Sections 13 or 15(d)]

Commitments and Contingencies

v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
As an E&S and Admitted markets intermediary, the Company faces ordinary course of business E&O exposure. The
Company also has potential E&O risk if an insurance carrier with which Ryan Specialty placed coverage denies coverage
for a claim or pays less than the insured believes is the full amount owed. The Company seeks to resolve, through
commercial accommodations, certain matters to limit the economic exposure, including potential legal fees, and
reputational risk created by E&O matters or disagreements between a carrier and the insured.
The Company utilizes insurance to provide protection from E&O liabilities that may arise during the ordinary course of
business. Ryan Specialty’s E&O insurance provides aggregate coverage for E&O losses up to $150.0 million in excess of a
per claim retention amount of $5.0 million. The Company periodically determines a range of possible outcomes using the
best available information that relies, in part, on projecting historical claim data into the future. Loss contingencies of $4.3
million and $3.2 million were recorded for outstanding matters as of March 31, 2026 and December 31, 2025, respectively.
Loss contingencies exclude the impact of any loss recoveries and are recognized within Accounts payable and accrued
liabilities on the Consolidated Balance Sheets. The Company recognized the net impact of loss contingencies and any loss
recoveries of $1.4 million and $1.6 million of E&O expense for the three months ended March 31, 2026 and 2025,
respectively, in General and administrative expense on the Consolidated Statements of Income (Loss). The historical claim
and commercial accommodation data used to project the current estimates may not be indicative of future claim activity.
Thus, the estimates could change in the future as more information becomes known, which could materially impact the
amounts reported and disclosed herein.