Ryan Specialty Group Holdings, Inc. (NYSE:RYAN), a leading distributor of specialty insurance products and services, led by the 84-year old founder of Aon Corp, Patrick G. Ryan, debuted on public markets this week, rising 17%, closing at $27.50 on its first day
Ryan Specialty Group: A Rare Profitable IPO
Summary
- The group combines impressive revenue growth with profitability. Though the company made a net loss in the first quarter, this can be attributed to its acquisition of All Risks.
- The underlying business is profitable and high growth is supported by the E&S market’s broader and rising growth. Market trends indicate that that growth is secular in nature.
- The company has pursued a successful policy of acquisitions which has helped it diversify its offering and offer more value to its clients.
- Although there are risks to the concentration of voting power in a founder, the risks seem outweighed by the resulting alignment in interests with those of the shareholders.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.