By Isha Marathe
Feb 3 - (The Insurer) - Ryan Specialty has completed its acquisition of Nashville-based Velocity Risk Underwriters from private equity sponsor Oaktree Capital Management in a $525mn cash deal.
Under the terms of the deal, which was first revealed by The Insurer and subsequently confirmed by Ryan Specialty, Velocity will join the wholesale giant's Ryan Specialty Underwriting Managers (RSUM) division.
Additionally, property mutual provider FM has agreed to buy Velocity Specialty Insurance Company (VSIC).
Velocity was founded in 2015 with a focus on US property catastrophe risks, providing coverage for perils such as named storm, earthquake, and tornado and hail, with an emphasis on middle market and small to medium commercial businesses. The company has a particularly strong presence in Texas, Florida, and the Southeast.
Ryan Specialty said that Velocity generated full-year operating revenue of $81mn in 2024 and that the upfront cash consideration for the deal is exclusive of VSIC and any earn-out consideration, The Insurer reported.
“Adding Velocity to our property catastrophe portfolio significantly enhances our ability to serve our wholesale clients and further solidifies Ryan Specialty Underwriting Managers as the preeminent delegated authority platform in the country,” said Miles Wuller, president and CEO of RSUM, on 7 January when the deal was confirmed by Ryan Specialty.
“This talented team has developed robust technology, portfolio management, and data analytics capabilities that augment their innovative underwriting and claims approach,” he said.
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