Ryan Specialty to expand property cat portfolio with $525m Velocity Risk acquisition

Specialty insurer Ryan Specialty has agreed to acquire Nashville, Tennessee-based managing general underwriter Velocity Risk Underwriters, LLC for $525 million from funds managed by Oaktree Capital Management, L.P., expanding its property catastrophe portfolio.

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Expected to close early this year, Velocity, a provider of first-party insurance for catastrophe exposed properties, will become part of the buyer’s Ryan Specialty Underwriting Managers division.

Velocity was founded in 2015 with a focus on U.S. property catastrophe risks, providing insurance for named storms, earthquakes, and tornadoes and hail events, with a focus on middle market and small to medium commercial businesses.

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The company has a strong presence in Florida, Texas, and the Southeast U.S., and in 2024, generated approximately $81 million of operating revenue.

As part of the transaction, Velocity Specialty Insurance Company (VSIC), Velocity’s wholly owned E&S insurance carrier, will be acquired by commercial property mutual insurer FM, subject to regulatory approval.

It’s been reported that Ryan Specialty’s $525 million upfront cash consideration for Velocity is exclusive of VSIC and any earnout consideration, and is subject to customary purchase price adjustments.

Miles Wuller, President and CEO of Ryan Specialty Underwriting Managers, said: “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. This talented team has developed robust technology, portfolio management, and data analytics capabilities that augment their innovative underwriting and claims approach. We are looking forward to having the Velocity team as a part of the Ryan Specialty family.”

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Malcolm Roberts, Chairman and CEO of FM, said: “VSIC’s focus on property insurance and expertise in understanding the new risk landscape that many businesses face aligns perfectly with FM’s mission and may eventually allow us to provide our clients with an even broader suite of products and solutions to meet risks today and in the future. We are excited to welcome VSIC to the FM family and strengthen our strategic relationship with Ryan Specialty.”

“We are thrilled about the synergy of our industry-leading property underwriting and claims capability with the Ryan Specialty organization and with FM acquiring our E&S balance sheet. With this strategic transaction, Velocity gains expanded access to markets and additional resources to continue on its growth journey. With our E&S balance sheet becoming part of an incredibly well-rated and capitalized entity in FM, it further enhances the security and capacity we bring to the wholesale market,” added Phil Bowie, Executive Vice Chairman of Velocity.

Jake Rothfuss, CEO of Velocity, added: “Through this transaction, Velocity will continue delivering exceptional service to brokers, customers, and capital sources. Ryan Specialty maintains the same foundational values and innovative culture that we have created and live every day at Velocity. The combination of these incredible organizations will allow our teammates to further their skills and provides the opportunity for Velocity to accelerate the growth of our managing general underwriter to even greater heights. Joining Ryan Specialty is the right home for the future of our team; we’re all looking forward to our future together.”

Greg Share, Managing Director of Oaktree, commented: “We are proud to have partnered with Phil, Jake, and the entire Velocity team and wish them success in the next chapter of the Company’s growth.”

Both Insurance Advisory Partners LLC and Howden Capital Markets & Advisory served as financial advisors to Velocity and Oaktree, and Debevoise & Plimpton LLP served as legal counsel to Velocity and Oaktree. J.P. Morgan Securities LLC served as exclusive financial advisor to Ryan Specialty, and Sidley Austin LLP served as legal counsel to Ryan Specialty, while Willkie Farr & Gallagher LLP served as legal counsel to FM.