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

Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

9 Months Ended

Sep. 30, 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 three and nine months ended September 30, 2021 were $3.2 million and $13.1 million, respectively, and cumulative restructuring costs incurred since the inception of the program were $24.0 million as of September 30, 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 the three and nine months ended September 30, 2021:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Compensation and benefits	$	895	$	2,975	$	9,246	$	2,975
Occupancy and other costs(1)		2,281		45		3,893		45
Total	$	3,176	$	3,020	$	13,139	$	3,020

(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 from December 31, 2020 through September 30, 2021:


	Compensation and Benefits			Occupancy and Other Costs			Total
Balance as of December 31, 2020	$	7,049		$	—		$	7,049
Accrued costs		9,246			3,893			13,139
Payments		(16,281	)		(3,893	)		(20,174	)
Balance as of September 30, 2021	$	14		$	—		$	14