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, 2023

Restructuring and Related Activities [Abstract]

In February 2023, the Company initiated the ACCELERATE 2025 program that will enable continued growth, drive innovation, and deliver sustainable productivity improvements over the long term. The restructuring plan aims to reduce costs and increase efficiencies through a focus on optimizing the Company's operations and technology. The restructuring plan is expected to incur total restructuring costs of approximately $65.0 million through December 31, 2024 and to generate annual savings of $35.0 million in 2025. The total expected costs of the plan include $45.0 million related to operations and technology optimization, $15.0 million related to employee compensation and benefits, and $5.0 million related to asset impairment and other termination costs.

The table below presents the restructuring expense incurred in the period:


	Three Months Ended
	March 31, 2023
Operations and technology optimization	$	1,434
Compensation and benefits		659
Asset impairment and other termination costs		586
Total	$	2,679

For the three months ended March 31, 2023, the Company recognized restructuring expenses of $0.7 million, including contractor costs, in Compensation and benefits, and $2.0 million in General and administrative expense on the Consolidated Statements of Income.

The table below presents a summary of changes in the restructuring liability:


	Operations and Technology Optimization			Compensation and Benefits			Asset Impairment and Other Termination Costs			Total
Balance at January 1, 2023	$	—		$	—		$	—		$	—
Accrued costs		1,434			659			586			2,679
Payments		(10	)		(75	)		—			(85	)
Non-cash adjustments		—			—			(437	)		(437	)
Balance at March 31, 2023	$	1,424		$	584		$	149		$	2,157