Ryan Specialty Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Restructuring

Restructuring

12 Months Ended

Dec. 31, 2021

Restructuring And Related Activities [Abstract]

During 2020, the Company initiated a restructuring plan in conjunction with the All Risks Acquisition, to reduce costs and increase efficiencies. The restructuring plan is expected to generate annual savings of $25.0 million when it is fully actioned by June 30, 2022.

This plan involves restructuring costs beginning on July 1, 2020, primarily consisting of employee termination benefits and retention costs. The restructuring plan also includes charges for consolidating leased office space, as well as other professional fees. Restructuring costs incurred for the year ended December 31, 2021 were $14.4 million and cumulative restructuring costs incurred since the inception of the program were $25.2 million as of December 31, 2021. The Company expects to incur total restructuring costs in the range of $30.0 million 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 for the years ended December 31, 2021 and 2020:


	Year Ended December 31,
	2021		2020
Compensation and benefits	$	9,934	$	10,139
Occupancy and other costs(1)		4,446		701
Total	$	14,380	$	10,840

(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:


	Compensation and Benefits			Occupancy and Other Costs			Total
Balance as of December 31, 2019	$	—		$	—		$	—
Accrued costs		10,139			701			10,840
Payments		(3,090	)		(701	)		(3,791	)
Balance as of December 31, 2020	$	7,049		$	—		$	7,049
Accrued costs		9,934			4,446			14,380
Payments		(16,576	)		(4,446	)		(21,022	)
Balance as of December 31, 2021	$	407		$	—		$	407