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, 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 was entered into expecting to generate annual savings of $25.0 million and 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.

This plan involved restructuring costs primarily consisting of employee termination benefits and retention costs. The restructuring plan also included charges for consolidating leased office space, as well as other professional fees.

Restructuring costs incurred for the year ended December 31, 2022 were $5.7 million and cumulative restructuring costs incurred since the inception of the program were $30.9 million as of December 31, 2022.

The table below presents the restructuring expense incurred:


	Year Ended December 31,
	2022		2021
Compensation and benefits	$	725	$	9,934
Occupancy and other costs(1)		4,992		4,446
Total	$	5,717	$	14,380

(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:


	Compensation and Benefits			Occupancy and Other Costs			Total
Balance at December 31, 2020	$	7,049		$	—		$	7,049
Accrued costs		9,934			4,446			14,380
Payments		(16,576	)		(4,446	)		(21,022	)
Balance at December 31, 2021	$	407		$	—		$	407
Accrued costs		725			4,992			5,717
Payments		(982	)		(4,992	)		(5,974	)
Balance at December 31, 2022	$	150		$	—		$	150