IAP Acted As Financial Advisor To Velocity And Oaktree In Connection With The Sale Of VRU (MGU) And VSIC (E&S Insurance Carrier)
On January 7th, 2025, Ryan Specialty (“Ryan”) announced it signed definitive agreements to acquire Velocity Risk Underwriters, LLC (“VRU”). VRU is a leading managing general underwriter, founded in 2015 and based in Nashville, TN, that provides first-party insurance coverage for catastrophe exposed properties (named storm, earthquake, and tornado and hail). Ryan has an implied market capitalization of ~$16.2bn (as of January 6th, 2025) and acts as a wholesale broker and a managing underwriter with delegated authority from carriers. VRU is to be acquired by Ryan for an upfront cash consideration of $525m.
On January 7th, 2025, FM announced it signed definitive agreements to acquire Velocity Specialty Insurance Company (“VSIC”). VSIC is a wholly owned E&S carrier and is licensed in all 50 states with a financial strength rating of “A-” (Excellent) by A.M. Best. FM has ~$24.2bn of surplus (as of September 30th, 2024) and is a leading commercial property mutual insurance company.
Insurance Advisory Partners acted as financial advisor to Velocity and Oaktree in connection with these transactions.
For more information regarding this transaction, please see the case study attached and the following press release: https://www.businesswire.com/news/home/20250107540122/en/Ryan-Specialty-Signs-Definitive-Agreement-to-Acquire-Velocity-Risk-Underwriters