Ryan Specialty (NYSE: RYAN) shares gained Tuesday, as the leading international specialty insurance firm announced it has signed a definitive agreement to acquire Velocity Risk Underwriters, LLC from funds managed by Oaktree Capital Management, L.P. Based in Nashville, Velocity is a leading managing general underwriter providing first-party insurance coverage for catastrophe exposed properties and will become a part of the Ryan Specialty Underwriting Managers division of Ryan Specialty.
Velocity was founded in 2015 to focus on US property catastrophe risks, providing hard to secure coverage for perils such as named storm, earthquake, and tornado and hail, with an emphasis on middle market and small to medium commercial businesses. Geographically, Velocity has a national footprint with a particularly strong presence in Florida, Texas, and the Southeast.
As a component of this transaction, and subject to regulatory approval, Velocity’s wholly owned E&S carrier, Velocity Specialty Insurance Company will be acquired by FM, a leading commercial property mutual insurance company representing many of the world’s largest organizations, including one of every four Fortune 500 companies.
Said CEO Miles Wuller, “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.”
RYAN shares moved up 45 cents to $62.19.
