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

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

3 Months Ended

Mar. 31, 2022

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.

The 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 three months ended March 31, 2022 and 2021 were $3.1 million and $6.9 million, respectively, and cumulative restructuring costs incurred since the inception of the program were $28.3 million as of March 31, 2022. 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 during the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
Compensation and benefits	$	158	$	6,189
Occupancy and other costs(1)		2,966		729
Total	$	3,124	$	6,918

(1)

Occupancy and other costs, which include non-cash impairments, are included within General and administrative expenses in the Consolidated Statements of Income

The table below presents a summary of changes in the restructuring liability from December 31, 2021 through March 31, 2022:


	Compensation and Benefits			Occupancy and Other Costs			Total
Balance as of December 31, 2021	$	407		$	—		$	407
Accrued costs		158			798			956
Payments		(545	)		(798	)		(1,343	)
Balance as of March 31, 2022	$	20		$	—		$	20