Ryan Specialty (NYSE:RYAN) reported second-quarter revenue growth of 7.2% to $917 million, supported by 6.7% organic growth and modest contributions from acquisitions, as the specialty insurance services company navigated pricing pressure in property insurance and rising competition in several markets.
Adjusted EBITDA increased 6% to $327 million, while adjusted EBITDA margin declined 40 basis points year over year to 35.7%. Adjusted earnings per share rose 12.1% to $0.74. For the first half of 2026, the company said organic revenue grew 8.9%, adjusted EBITDA increased 9.8%, and adjusted EPS rose 16.2%.
Founder and Executive Chairman Pat Ryan said the quarter demonstrated the resilience of the company’s wholesale brokerage and delegated underwriting platform despite industry headwinds. He highlighted Ryan Specialty’s specialty-product breadth, carrier relationships and ability to develop new underwriting programs as differentiators.
Property pricing remains a headwind
CEO Tim Turner said the company faced a “very challenging property pricing environment,” particularly in catastrophe-exposed and large-account business, where capacity continued to build and competition remained intense. Pricing on some catastrophe business declined materially, although Ryan Specialty’s property book fell only modestly during the quarter, better than management had expected.
Turner attributed the relative performance to strong retention, new-business wins and a better-than-expected June. He said the company continued to benefit from business flowing into the excess-and-surplus, or E&S, market, even as pricing conditions remained difficult.
In casualty, Ryan Specialty reported a strong quarter, aided by construction activity and several large project-based wins, including data center-related business. Turner cautioned that construction project activity is inherently lumpy because the timing of client binding decisions can be difficult to predict. Management said the pipeline for construction opportunities remains strong heading into the remainder of the year.
The company said casualty pricing remains firm in areas including transportation, habitational, sports and entertainment, portions of healthcare, public entity and human services. However, it is seeing increased competition and some price moderation in small and medium-hazard risks, as well as certain other market segments.
Underwriting management and new products support growth
Ryan Specialty’s underwriting management operations posted what management described as an excellent quarter, with strength in transactional liability, transportation, international specialty, casualty and reinsurance. Transactional liability exceeded the company’s expectations, supported by a more constructive global mergers-and-acquisitions environment.
Ryan Re, the company’s reinsurance managing underwriter, also delivered strong renewal retention despite a difficult pricing environment. Turner said Ryan Re remains on track to place $2 billion of reinsurance premium during 2026.
Management noted continued pressure in builders risk, reflecting broader macroeconomic conditions. Its binding authority business grew revenue year over year but encountered heightened competition, particularly from new facilities competing for smaller commercial accounts. The company expects those competitive pressures to intensify in the second half.
Ryan Specialty also discussed its efforts to expand beyond traditional managing general agency and managing general underwriter activities. Pat Ryan cited reinsurance underwriting, alternative capital solutions and benefits products as businesses intended to diversify the company from the property-and-casualty cycle. He said these newer businesses remain smaller than the company’s wholesale distribution and underwriting management operations but are becoming more meaningful contributors to growth, margins and earnings.
In July, RSUM launched a Lloyd’s Consortium stamp that will take a 15% line on its syndicated business beginning Aug. 1. Turner said the initiative is designed to improve capital efficiency, support underwriting capacity and accelerate the company’s speed to market.
Guidance updated; margins expected to decline
CFO Janice Hamilton said Ryan Specialty continues to expect full-year organic revenue growth in the mid-single digits for 2026, but now expects results to fall toward the higher end of that range. The outlook assumes continued property price declines, heightened competition, softer binding-authority growth and ongoing builders-risk pressure.
The company expects a moderate decline in its property book for the full year and a more normalized level of construction-project growth in the second half. Hamilton said the third quarter represents Ryan Specialty’s most difficult organic-growth comparison of the year, including comparisons against prior-year property growth and strong underwriting-management growth in transactional liability, structured solutions and reinsurance.
Ryan Specialty now expects its full-year adjusted EBITDA margin to decline by approximately 50 to 100 basis points year over year. Hamilton said the outlook reflects market conditions, continued absorption of talent investments, lower fiduciary investment income and higher healthcare and benefits costs. Those pressures are expected to be partly offset by cost discipline and early benefits from the company’s Empower operational-efficiency program.
Capital allocation and leadership changes
During the quarter, Ryan Specialty repurchased approximately 8.1 million shares for $260 million and increased its repurchase authorization by $300 million. The company also repurchased $42 million of stock in July. It ended the quarter with total net leverage of 3.3 times on a credit basis, within its stated 3-times-to-4-times comfort range.
Hamilton said the company considers both acquisitions and repurchases priorities within its capital-allocation strategy, but it is unlikely to close a meaningful acquisition in 2026. Management said it is looking toward 2027 for larger acquisition opportunities, while remaining prepared to pursue assets that meet its strategic, cultural and financial criteria.
The company also announced a planned leadership succession at RT Specialty. Brendan Mulshine will become CEO of RT Specialty, while Ed McCormack will transition to vice chairman of RT Specialty.
Finally, management described ongoing technology and artificial-intelligence investments, including tools designed to accelerate reinsurance submission processing, improve treaty underwriting workflows and reduce manual property-inspection tasks. Turner said the company is using proprietary data and internal guardrails as it expands AI deployment across its operations.
About Ryan Specialty (NYSE:RYAN)
Ryan Specialty Group, Inc (NYSE: RYAN) is a global specialty insurance and reinsurance platform that partners with a network of insurers and reinsurers to deliver tailored risk solutions. The company focuses on complex and large-scale risks across multiple industry sectors, leveraging its underwriting expertise to structure coverage programs that meet clients’ unique needs.
Ryan Specialty’s core offerings span a diverse range of specialty lines, including casualty, property, professional liability, marine and energy, program administration, and sports and entertainment.
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