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, 2024

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. In its expanded form, the restructuring plan is expected to incur total restructuring costs of approximately $110.0 million through December 31, 2024 and to generate annual savings of approximately $60.0 million in 2025. The total expected costs of the plan include $55.0 million related to operations and technology optimization, $40.0 million related to employee compensation and benefits, and $15.0 million related to asset impairment and other termination costs.

The table below presents the restructuring expense for the program incurred:


	Three Months Ended March 31,				Inception-to-Date
	2024		2023		As of March 31, 2024
Operations and technology optimization	$	4,435	$	1,434	$	30,430
Compensation and benefits		24,603		659		35,923
Asset impairment and other termination costs		—		586		11,057
Total	$	29,038	$	2,679	$	77,410

For the three months ended March 31, 2024 and 2023, the Company recognized restructuring expenses of $26.1 million and $0.7 million, respectively, including contractor costs, in Compensation and benefits, and $2.9 million and $2.0 million, respectively, 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			Total
Balance at December 31, 2023	$	5,886		$	1,080		$	6,966
Accrued costs		10,392			24,603			34,995
Payments		(8,944	)		(24,018	)		(32,962	)
Balance at March 31, 2024	$	7,334		$	1,665		$	8,999

Accrued costs in the table above include both costs expensed and capitalized during the period. As of March 31, 2024 and December 31, 2023, $6.9 million and $5.3 million, respectively, of the restructuring liability was included in Accounts payable and accrued liabilities and $2.1 million and $1.7 million, respectively, was included in Current Accrued compensation on the Consolidated Balance Sheets.