Chicago-based Ryan Specialty Holdings Inc. said Aug. 2 it plans to keep the headquarters of US Assure Insurance Services of Florida Inc. in Jacksonville after agreeing to buy the firm in a deal worth up to $1.5 billion.
Ryan is an international specialty insurance intermediary firm. US Assure specializes in builder’s risk insurance.
Specialized builder’s risk insurance, also known as course of construction insurance, is a type of insurance that helps protect buildings under construction.
US Assure is headquartered at 8230 Nations Way in Cypress Point Business Park.
Ryan said when the deal to acquire US Assure is complete, it will become a wholly owned direct subsidiary and part of Ryan Specialty’s Underwriting Managers Specialty group.
Ryan also said Aug. 2 it intends to keep the US Assure name and retain its 160 employees and leadership, including CEO Ty Petway.
In the deal announced Aug. 1, Ryan said in a Securities and Exchange Commission filing it is buying Assure for $1.075 billion in cash and up to $400 million in additional payments based on meeting certain performance targets during a three-year period following the acquisition.
The closing is subject to the satisfaction or waiver of customary closing conditions. The acquisition is expected to close during the third quarter of 2024, subject to customary closing conditions, according to a Ryan news release announcing the agreement.
Ryan, formed in 2010, said that US Assure, established in 1977, is in the small- to middle-market segment of the builder’s risk insurance market, with a diversified portfolio throughout the United States and relationships with more than 20,000 active agents.
“US Assure’s underwriting is enhanced by a sophisticated and robust proprietary technology platform that provides ease of access to insurance brokers and expedites the underwriting and policy issuance process,” the release said.
US Assure issues market insurance coverage on behalf of Zurich American Insurance Co.
“US Assure is one of our industry’s oldest and highest quality programs, and has developed an outstanding business in a difficult class. Specializing in builder’s risk, US Assure underwrites a diversified portfolio of residential, commercial, and remodeling projects in non-urban locations as well as large metropolitan areas,” said Ryan founder, Chairman and CEO Patrick G. Ryan in the release.
BusinessInsurance.com reported the deal is expected to close Sept. 1.
The trade site said the announcement came as Ryan announced a nearly 20% increase in second-quarter revenue.
It said that about 90% of US Assure’s submissions are handled through its online portal.
“They’re micro premiums; a lot of people would say you can’t make a profit on that size premium,” CEO Patrick Ryan said on a conference call with analysts, according to BusinessInsurance.com.
“The US Assure team several decades ago figured out how to do that and so it’s a very high-value proposition to the contractor,” Ryan said.
BusinessInsurance.com said US Assure expects to report $122.5 million in revenue in 2024.
Ryan reported $695.4 million in revenue for the second quarter, an 18.8% increase over the same period last year and 14.2% on an organic basis, which excludes the effect of acquisitions and foreign currency fluctuations, the site said.
Among its main divisions, wholesale brokerage reported $444.1 million in revenue, up 16.4%; underwriting management reported $155.5 million, up 27.8%; and binding authorities reported $80.6 million, up 15.6%.
US Assure was started in 1977 by Tom Petway and his partners at Home Builders Insurance. It changed its name to Zurich Insurance Services in 1998 and to US Assure in 2012.
US Assure CEO Thomas “Ty” Petway IV is Tom Petway’s son.
The senior Tom Petway was a founding partner of the Jacksonville Jaguars.