Ryan Specialty has agreed to acquire Nashville-based MGU Velocity Risk Underwriters from Oaktree Capital Management for US$525 million in upfront cash.
The deal, expected to close in early 2025, aims to expand Ryan Specialty's property catastrophe portfolio.
Founded in 2015, Velocity specialises in US property catastrophe risks, including coverage for named storms, earthquakes, tornadoes, and hail, with a focus on middle-market and small to medium-sized commercial businesses.
As part of the transaction, Velocity Specialty Insurance Company (VSIC), Velocity’s wholly owned excess and surplus (E&S) insurance carrier, will be acquired by commercial property mutual insurer FM.
Remarking on this acquisition, Miles Wuller, president and CEO of Ryan Specialty Underwriting Managers, says: “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.”
Phil Bowie, executive vice chairman of Velocity, states: “We are thrilled about the synergy of our industry-leading property underwriting and claims capability with the Ryan Specialty organisation 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.”
Malcolm Roberts, chairman and CEO of FM, adds: “We are excited to welcome VSIC to the FM family and strengthen our strategic relationship with Ryan Specialty.”
