Q3 2025 Ryan Specialty Holdings Inc Earnings Call

Today for run specialty Holdings' third quarter 2025 earnings conference call and.

In addition to this call the company filed a press release with the SEC earlier. This afternoon, which has also been posted to its website at Ryan specialty don't come on.

On today's call management's prepared remarks and answers to your questions may contain forward looking statements.

Investors should not place undue reliance on any forward looking statements. These statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today.

Listeners are encouraged to review the more detailed discussions of these risk factors contained in the company's filings with the SEC. The company assumes no duty to update such forward looking statements in the future except as required by law.

Additionally, certain non-GAAP financial measures will be discussed on this call and should not be considered in isolation or as a substitute to the financial information presented in accordance with GAAP reckon.

Reconciliations of these non-GAAP financial measures to the most closely comparable measures prepared in accordance with GAAP are included in the earnings release, which is filed with the SEC and available on the Companys website with that I'd now like to turn the call over to the founder and executive Chairman O'brien specialty Pat Ryan.

Good afternoon.

Thank you for joining us to discuss our third quarter results.

With me on today's call is our CEO Tim Turner.

Our CFO Dennis Hamilton.

Our CEO of underwriting managers miles water.

And our head of Investor Relations live music.

We had a strong third quarter and are pleased with our ability.

<unk> as they deliver value for our clients across our businesses for.

For the quarter.

We grew total revenue 25%.

Driven by organic revenue growth of 15%.

M&A, which added nearly 10 percentage points to the top line.

Adjusted EBITDA grew 23, 8% to $236 million.

Adjusted EBITDA margin was 31, 2%.

<unk> to 31 and a half from the prior year.

Adjusted earnings per share grew 14, 6% 47 cents.

We remained active in M&A this quarter and have a robust pipeline.

Positioning us well to execute on our disciplined long term inorganic growth strategy.

Excellent growth was driven by strength in casually across all three of our specialties and modest growth in property.

We generated strong new business.

There's high renewal retention, even in the face of a complex and evolving insurance of macro environment.

This achievement reflects the unmatched expertise execution and commitment of our world class team.

Our ability to execute at this level continues to set Ryan specialty apart.

Frankly, as our position as one of the most formidable forces.

Specialty lines of insurance.

Moving to our recently announced initiatives this quarter.

We successfully onboard a key talent across Ryan Murray and alternative risk.

<unk> innovative products to market through the launch of our flagship collateralized sidecar, Brian alternative capital re or rock right.

Separate from those initiatives, we continue to entrench Ryan specially as the destination of choice for top talent.

We believe we have entered into a unique and potentially transformative period within the specialty and any of those markets.

As the industry reacts to a transitioning market.

We are attracting more talented professionals.

Looking for a platform and not only withstand market cycles powers through them.

Over the last 15 years we've.

They've built a culture and business model.

Stands apart from our competitors.

Throughout the quarter, we saw a significant opportunity.

Our amp up our recruitment efforts.

As a result, we added a significant number of experienced professionals for a world class team.

We expect this momentum to continue in the quarters ahead.

Growth in long term value creation and are in our DNA.

And we will remain true to that by continuing to prioritize strategic investments.

Especially as it relates to talent.

The noble formations.

<unk> products and solutions M&A and technology.

These are all key areas that will further reinforce our commitment to our clients and our leadership in specialty insurance solutions we.

We believe these investments will accelerate our ability to relentlessly capture market opportunities.

Pat Ryan: In an evolving insurance and macro environment, this achievement reflects the unmatched expertise, execution, and commitment of our world-class team. Our ability to execute at this level continues to set Ryan Specialty apart and strengthens our position as one of the most formidable forces, especially in specialty insurance. Moving to our recently announced initiatives this quarter, we successfully onboarded key talent across Ryan Re and alternative risk and brought innovative products to market through the launch of our flagship collateralized sidecar, Ryan Alternative Capital Re, or RAC Re. Separate from those initiatives, we continue to entrench Ryan Specialty as the destination of choice for top talent. We believe we have entered into a unique and potentially transformative period within the specialty and E&S market.

Enhance our competitive position and deliver a durable value for our shareholders over the long term.

As we've noted repeatedly.

Our recruitment training development and.

And retaining of talent.

Is the best and most accretive investment we can make.

It will continue to drive our organic growth engine for years to come.

The strengthens our position as 1 of the most formidable forces, especially lines insurance.

These efforts are fundamental to our strategy as a leading high growth company.

Moving to our recently announced initiatives this quarter.

And we will enable our long term success.

we successfully onboarded key Talent across Ryan ree, an alternative risk.

Stepping back our performance through these first nine months.

Reinforces our confidence in delivering yet another year of double digit organic growth in 2025.

And brought Innovative products to Market through the launch of our Flagship, collateralized sidecar, Brian alternative, Capital re or Rock Reed.

Marking the 15th consecutive year of achieving this increasingly remarkable accomplishment. Additionally, we are well positioned.

Separate from those initiatives. We continue to entrench Ryan's specially as the destination of choice for top talent.

To sustain similar levels of full year organic growth in the 2026.

Pat Ryan: As the industry reacts to a transitioning market, we are attracting more talented professionals that are looking for a platform that not only withstands market cycles but powers through them. Over the last 15 years, we've built a culture and business model that stands apart from our competitors. Throughout the quarter, we saw a significant opportunity to ramp up our recruitment efforts. As a result, we added a significant number of experienced professionals to our world-class team. We expect this momentum to continue in the quarters ahead. Growth and long-term value creation are in our DNA, and we will remain true to that by continuing to prioritize strategic investments, especially as it relates to talent, the noble formations, innovative products and solutions, M&A, and technology. These are all key areas that will further reinforce our commitment to our clients and our leadership in specialty insurance solutions.

We believe we have entered into a unique and potentially transformative period within the specially and ens Market.

Looking beyond that we believe we will continue delivering industry, leading organic growth.

As the industry reacts to a transitioning Market.

Topic, Tim will address in more detail shortly.

Lastly, before turning the Tim.

We are attracting more talented professionals who are looking for a platform that not only withstands market cycles but powers through them.

I want to congratulate both CPO and Brendan most line on their promotions to co presidents of Ryan specialty.

Over the last 15 years.

They built the culture and business model that stands apart from our competitors.

Steven Brendan will continue in their roles as Chief operating officer, and Chief revenue Officer, respectively. All stepping into this expanded leadership position.

Throughout the quarter, we saw a significant opportunity to ramp up our recruitment efforts.

As a result, we added a significant number of experienced Professionals for our world-class team.

Halloween Jeremiah becomes transition serving as a strategic adviser through the end of the year.

We expect this momentum to continue in the quarters ahead.

Growth and long-term value creation are in our DNA.

Steve will be focused on driving operational excellence and.

And advancing our technology and innovation efforts, while Brendan will lead across our three specialties to enhance alignment and continue to maximize client impact.

And we will remain true to that by continuing to prioritize strategic investments.

Especially as it relates to talent.

The noble formation.

This announcement reflects the strength of our roster.

Innovative products and solutions m&a and Technology.

And the versatility of our leadership team.

Built for durability and continuity.

Pat Ryan: We believe these investments will accelerate our ability to relentlessly capture market opportunities, enhance our competitive position, and deliver durable value for our shareholders over the long term. As we've noted repeatedly, our recruitment, training, development, and retaining of talent is the best and most accretive investment we can make, as it will continue to drive our organic growth engine for years to come. These efforts are fundamental to our strategy as a leading high-growth company and will enable our long-term success. Stepping back, our performance through these first nine months reinforces our confidence in delivering yet another year of double-digit organic growth in 2025. Marking the 15th consecutive year of achieving this increasingly remarkable accomplishment. Additionally, we are well-positioned to sustain similar levels of full-year organic growth into 2026.

These are all key areas that will further reinforce our commitment to our clients and our leadership in. Specialy Insurance Solutions.

I also want to thank Jeremiah for his nearly 14 years of distinguished service.

Ryan specialty and for his support as we transition our leadership team.

We believe these investments will accelerate our ability to relentlessly capture market opportunities.

His dedication has been instrumental to the growth and success of our platform and we wish him. The best of luck with his future endeavors.

Enhance our competitive position and deliver durable value for our shareholders, over the long term.

As we've noted repeatedly.

As we wrap up 2025, we remain confident in our ability to innovate.

A recruitment, training, development, and retention of talent.

Is the best and most secretive investment. We can make

Hopefully invest in our business.

Through relentless execution and winning new business.

As it will continue to drive our organic growth engine for years to come.

Combined with strategic investments in growth initiatives.

These efforts are fundamental to our strategy as a leading High Growth Company.

Transformative acquisitions over the last few years.

And will enable our long-term success.

Numerous editions of top talent.

And accelerated investments in high growth areas.

Stepping back our performance through these first nine months.

Build the foundation that positions us exceptionally well for the future.

Reinforces our confidence in delivering yet another year of double digit. Organic growth in 2025.

As the coaches this terrific team.

I want to reemphasize, our proud I am of the team's ability to deliver exceptional total revenue growth 25%.

Marking the 15th consecutive year of achieving this increasingly remarkable accomplishment.

additionally, we are well, positioned

Driven by 15% organic growth and 10% inorganic growth.

Pat Ryan: Looking beyond that, we believe we will continue delivering industry-leading organic growth, a topic Tim will address in more detail shortly. Lastly, before turning to Tim, I want to congratulate both Steve Keel and Brendan Mulshine on their promotions to Co-Presidents of Ryan Specialty. Steve and Brendan will continue in their roles as Chief Operating Officer and Chief Revenue Officer, respectively, while stepping into this expanded leadership position. Following Jeremiah Bickham's transition to serving as Strategic Advisor through the end of the year, Steve will be focused on driving operational excellence and advancing our technology and innovation efforts, while Brendan will lead across our three specialties to enhance alignment and continue to maximize client impact. This announcement reflects the strength of our roster and the versatility of our leadership team, built for durability and continuity.

to sustain similar levels of full year organic growth in the 2026,

I'm, even more impressed with our ability to drive adjusted EBITDA growth 24%.

Looking beyond that, we believe we will continue delivering industry-leading organic growth.

Tim will address this in more detail shortly.

Especially considering the unique opportunity to attract top broking in underwriting talent and continued investments in technology throughout the quarter.

lastly, before turning the Tim,

I want to congratulate both seed peel.

And Brendan moshin.

I am pleased to turn the call over to our CEO, Tim Turner Tim.

And their promotions to co-presidents of Ryan's Specialty.

Thank you very much Pat Ryan specialty had an outstanding third quarter as we once again delivered industry leading results for our clients in the face of a very challenging property rate environment.

Stephen Brennan will continue in their roles as Chief Operating Officer and chief Revenue officer respectively while stepping into this expanded leadership position following Jeremiah Beckham's transition.

As I mentioned on our prior call. We remain hyper focused on successfully executing on what we can control and delivering an organic revenue growth rate of 15% for the quarter is clear validation that our strategy is working.

Serving a strategic advisor through the end of the year.

Steve will be focused on driving operational excellence.

And advancing our technology and Innovation efforts.

While Brendan will lead across our 3 Specialists to enhance alignment and continue to maximize client impact.

Further.

This announcement reflects the strength of our roster.

While the strong secular conditions have endured.

And the versatility of our leadership team.

It is our Ryan specific growth drivers that are resonating.

Pat Ryan: I also want to thank Jeremiah for his nearly 14 years of distinguished service to Ryan Specialty and for his support as we transition our leadership team. His dedication has been instrumental to the growth and success of our platform, and we wish him the best of luck with his future endeavors. As we wrap up 2025, we remain confident in our ability to innovate and thoughtfully invest in our business through relentless execution and winning new business, combined with strategic investments in growth initiatives. Transformative acquisitions over the last few years, numerous additions of top talent, and accelerated investments in the high-growth areas, we have built a foundation that positions us exceptionally well for the future.

Built for durability and continuity.

Notably our specialized intellectual capital unique trading relationships at scale and an ability to innovate evolve and stay ahead of the market.

I also want to thank Jeremiah.

For his nearly 14 years of distinguished service around specialy. And for his support as we transition our leadership team,

Specialty was built on a simple philosophy.

His dedication has been instrumental to the growth and success of our platform.

To skate where the puck is going.

We wish him the best of luck with his future endeavors.

This is the opportunity patent I saw back in 2010.

as we wrap up 2025,

And in every instance, where we've invested ahead of the curve.

we remain confident in our ability to innovate.

And thoughtfully invest in our business.

We have been rewarded.

To that extent as Pat highlighted we are currently operating in the early stages of our unique and potentially transformative period within the specialty and E&S environment.

Through Relentless execution and winning new business.

Combined with strategic investments in growth initiatives.

The last few years.

Numerous editions of top talent.

We made substantial progress in this opportunity towards the end of the third quarter.

And accelerated investments in the high growth areas.

Capitalizing on the influx of world class specialty talent.

Pat Ryan: As the coach of this terrific team, I want to re-emphasize how proud I am of the team's ability to deliver exceptional total revenue growth of 25%, driven by 15% organic growth and 10% inorganic growth. I'm even more impressed with our ability to drive adjusted EBITDA growth of 24%, especially considering the unique opportunity to attract top broking and underwriting talent and continued investments in technology throughout the quarter. Now I'm pleased to turn the call over to our CEO, Tim Turner. Tim.

We built the foundation that positions us exceptionally well for the future.

As the coach of this terrific team.

This type of strategic hiring provides us with an unmatched ability to position ourselves as the clear leader in the specialty lines industry over the long term trend.

I want to re-emphasize our proud. I am of the team's ability to deliver exceptional. Total revenue growth 25%.

Trend, we anticipate continuing in the quarters ahead as the industry's top talent continues to knock on our door.

Driven by 15% organic growth and 10% organic growth.

And even more impressed with our ability to drive adjusted Evac growth.

Additionally, as it relates to technology the pace of change has been remarkable driven primarily by advancements in AI and machine learning.

24%.

Specially considering the unique opportunity to attract top broking and underwriting talent, and continued investments in technology throughout the quarter.

These developments are reshaping our industry and the world around us and we are committed to staying ahead of the curve.

Tim Turner: Thank you very much, Pat. Ryan Specialty had an outstanding third quarter as we once again delivered industry-leading results for our clients in the face of a very challenging property rate environment. As I mentioned on our prior call, we remain hyper-focused on successfully executing on what we can control and delivering an organic revenue growth rate of 15% for the quarter is clear validation that our strategy is working. Further, while the strong secular conditions have endured, it is our Ryan-specific growth drivers that are resonating. Most notably, our specialized intellectual capital, unique trading relationships at scale, and an ability to innovate, evolve, and stay ahead of the market.

Now, I'm pleased to turn the call over to our CEO. Tim Turner Tim.

Of course, leveraging these opportunities requires meaningful investment.

And as a result, we now expect full year 2025 margins to be roughly flat to modestly down when compared to the prior year.

Thank you very much. Pat Brian's specialty. Had an outstanding third quarter as we once again, delivered industry-leading results for our clients in the face of a very challenging property rate environment.

However, these are without a doubt the most impactful and most accretive investments we can make to ensure the long term success and durability of the Ryan specialty platform.

As I mentioned on our prior call, we remain hyper focused on successfully executing on what we can control and delivering an organic Revenue growth rate of 15% for the quarter. It's clear validation that our strategy is working.

Looking ahead, we remain committed to margin expansion over time, while preserving the flexibility to prioritize strategic investments and capitalize on the opportunities when they arise such as the current talent environment and also de novo formations innovative products and solution.

Further.

While the strong secular conditions have endured?

It is our Ryan, specific growth drivers that are resonating.

Tim Turner: Ryan Specialty was built on a simple philosophy: "To skate where the puck is going." This was the opportunity Pat and I saw back in 2010, and in every instance where we have invested ahead of the curve, we have been rewarded. To that extent, as Pat highlighted, we are currently operating in the early stages of a unique and potentially transformative period within the specialty and E&S environment. We made substantial progress on this opportunity towards the end of the third quarter, capitalizing on the influx of world-class specialty talent. This type of strategic hiring provides us with an unmatched ability to position ourselves as the clear leader in the specialty lines industry over the long term, a trend we anticipate continuing in the quarters ahead as the industry's top talent continues to knock on our door.

M&A and technology.

Most notably, our specialized intellectual capital, unique trading relationships at scale, and an ability to innovate, evolve, and stay ahead of the market.

We believe this is the right approach to ensure continued industry leading growth.

Ryan specialty was built on a simple philosophy.

To skate where the puck is going.

In light of everything I've outlined we are deferring the 2027 timeline for our previously communicated 35% adjusted EBITDA margin target.

This is the opportunity patent. I saw back in 2010.

And in every instance where we have invested ahead of the curve,

we have been rewarded.

This reflects our commitment to capitalizing our growth opportunities like the ones, we're seeing today and prioritizing long term value creation over short term benchmarks.

To that extent, as Pat highlighted, we are currently operating in the early stages of a unique and potentially transformative period within the specialty and environment.

As we've noted in the past our strategy is designed to anticipate and address the evolving needs of our clients and trading partners.

We made substantial progress on this opportunity towards the end of the third quarter.

Capitalizing on the influx of world-class specialty Talent.

And we remain diligent on expanding our talent base and capabilities to satisfy these growing needs.

We believe this is the best way to ensure that our value proposition remains dynamic differentiated and most importantly indispensable.

This type of strategic hiring provides us with an unmatched, ability to position ourselves as the clear leader in the specialty lines industry over the long term, a trend, we anticipate continuing in the quarters ahead.

Tim Turner: Additionally, as it relates to technology, the pace of change has been remarkable, driven primarily by advancements in AI and machine learning. These developments are reshaping our industry and the world around us, and we are committed to staying ahead of the curve. Of course, leveraging these opportunities requires meaningful investment, and as a result, we now expect full-year 2025 margins to be roughly flat to modestly down when compared to the prior year. However, these are without a doubt the most impactful and most accretive investments we can make to ensure the long-term success and durability of the Ryan Specialty platform. Looking ahead, we remain committed to margin expansion over time while preserving the flexibility to prioritize strategic investments and capitalize on the opportunities when they arise, such as the current talent environment and also de novo formations, innovative products and solutions, M&A, and technology.

We also understand the importance of the commitment we make to our teammates <unk>.

As the industry's top talent continues to knock on our door.

Equipping them with the most advanced tools to ensure innovation and top tier service to our clients and trading partners has been and will remain an area of heightened focus going forward.

Additionally, as it relates to technology, the pace of change has been remarkable.

Driven primarily by advancements in Ai and machine learning.

These investments are fundamental to our strategy as a leading high growth company and serve as sustainable fuel to our growth engine.

These developments are reshaping, our industry and the world around us and we are committed to staying ahead of the Curve.

Turning to growth as Pat mentioned, we are increasingly confident in our ability to deliver yet another year of double digit organic growth in 2025.

Of course, leveraging these opportunities requires meaningful investment and as a result, we now, expect full year, 2025 margins to be roughly flat to modestly down when compared to the prior year.

And are in a great position to sustain a similar level of organic growth into 2026.

And that we believe we can consistently deliver industry, leading organic growth on an annual basis in the years to come.

However, these are, without a doubt, the most impactful and most accretive investments we can make to ensure the long-term success and durability of the Ryan Specialty platform.

Important drivers of our growth going forward.

Sure.

Our expectation to continue capitalizing on the unique opportunity to recruit and onboard top tier talent in the quarters ahead.

Looking ahead. We remain committed to margin expansion over time, while preserving the flexibility to prioritize, strategic Investments and capitalize on the opportunities when they arise.

Tim Turner: We believe this is the right approach to ensure continued industry-leading growth. In light of everything I've outlined, we are deferring the 2027 timeline for our previously communicated 35% adjusted EBITDA margin target. This reflects our commitment to capitalizing our growth opportunities, like the ones we're seeing today, and prioritizing long-term value creation over short-term benchmarks. As we've noted in the past, our strategy is designed to anticipate and address the evolving needs of our clients and trading partners. We remain diligent on expanding our talent base and capabilities to satisfy these growing needs. We believe this is the best way to ensure that our value proposition remains dynamic, differentiated, and most importantly, indispensable. We also understand the importance of the commitment we make to our teammates.

I'll also training developing and retaining the exceptional team we've built over the past 15 years.

Such as the current talent environment, and also, de novo formations, innovative products and solutions, M&A, and technology.

We believe this is the right approach to ensure continued industry-leading growth.

Continued growth in our casualty business driven by solid flow into the E&S channel and our expertise in high hazard classes.

In light of everything. I've outlined we are deferring. The 2027 timeline for our previously, communicated 35% adjusted, ebdc, margin Target.

Our ability to offset another year of soft property pricing as was evident this year.

Through Ryan Reed, our reinsurance underwriting Mg U for which we've thoughtfully staff in anticipation of one one renewals following the nationwide at Markel renewal rights deal.

This reflects our commitment to capitalizing our growth opportunities like the ones we're seeing today and prioritizing long-term value creation over short-term benchmarks.

Ongoing innovation through new product launches and investments in geographic expansion broadly across the underwriting platform, which includes alternative risk Ryan re as well as our newly announced sidecar rack rate.

As we've noted in the past, our strategy is designed to anticipate and address the evolving needs of our clients and trading partners.

And we remain diligent in expanding our talent base and capabilities to satisfy these growing needs.

Contributions from recent M&A.

As well as the continued pursuit of future transactions as this year's M&A is next year's organic growth and.

Tim Turner: Equipping them with the most advanced tools to ensure innovation and top-tier service to our clients and trading partners has been and will remain an area of heightened focus going forward. These investments are fundamental to our strategy as a leading high-growth company and serve as sustainable fuel to our growth engine. Turning to growth, as Pat mentioned, we are increasingly confident in our ability to deliver yet another year of double-digit organic growth in 2025 and are in a great position to sustain a similar level of organic growth into 2026. Beyond that, we believe we can consistently deliver industry-leading organic growth on an annual basis in the years to come.

We also understand the importance of the commitment we make to our teammates.

And lastly, our confidence in continued growth across all three of our specialties.

It is a very exciting time that Ryan specialty and we are taking advantage of the multiple pathways to strengthen our position as the global leader in specialty lines.

Equipping them with the most advanced tools to ensure Innovation and top tier service to our clients and trading partners has been and will remain an area of heightened. Focus going forward.

These Investments are fundamental to our strategy as a leading High Growth Company.

While staying focused on creating long term sustainable value for our shareholders.

And service sustainable fuel to our growth engine.

Turning to our results by specialty our wholesale brokerage specialty had a great quarter and property, we returned to growth through our relentless execution, winning a high percentage of new business and head to head competition.

Turning to growth. As Pat mentioned, we are increasingly confident in our ability to deliver yet another year of double-digit, organic growth in 2025.

And we are in a great position to sustain a similar level of organic growth into 2026.

Supported by high renewal retention continued steady flow into the E&S channel partially.

Tim Turner: Important drivers of our growth going forward are our expectation to continue capitalizing on the unique opportunity to recruit and onboard top-tier talent in the quarters ahead, while also training, developing, and retaining the exceptional team we've built over the past 15 years. Continued growth in our casualty business, driven by solid flow into the E&S channel and our expertise in high-hazard classes, our ability to offset another year of soft property pricing, as was evident this year through Ryan Re, our reinsurance underwriting MGU, for which we've thoughtfully staffed in anticipation of 1-1 renewals following the Nationwide and Markel renewal rights deal. Ongoing innovation through new product launches and investments in geographic expansion broadly across the underwriting platform, which includes alternative risk, Ryan Re, as well as our newly announced sidecar, RAC Re. Contributions from recent M&A.

Offset by the rapid decline in property pricing in Q3.

Beyond that. We believe we can consistently deliver industry-leading organic growth, on an annual basis in the years to come.

We expect the fourth quarter to face continued deterioration of property pricing given what looks like another benign hurricane season.

important drivers of our growth going forward are

However, our longer term outlook remains optimistic given the frequency and severity of cat events.

our expectation to continue capitalizing on the unique opportunity to recruit and onboard top tier talent in the quarters ahead.

Notwithstanding recent experience and the increasing population and cat affected areas, creating an increased demand for E&S property solutions.

While also training, developing, and retaining the exceptional team we've built over the past 15 years.

Continued growth in our casualty, business driven by solid flow, into the ens Channel, and our expertise and high hazard classes.

With our deep capabilities, we will continue to deliver value for our trading partners and offer innovative products and solutions for the most complex issues, our clients face irrespective of the market cycle.

Our ability to offset another year of soft property. Pricing as was evident this year.

We continue to expect property to be an important contributor to our growth over the long term.

Through Ryan Reed, our reinsurance underwriting MGU, for which we've thoughtfully staffed in anticipation of a 1:1 renewable rights deal.

Meanwhile, our casualty practice continues to deliver very strong results.

Driven by excellent new business and high renewal retention.

We were particularly pleased to see pockets of growth in our construction segment in the quarter.

Ongoing Innovation through new product, launches and investments. In Geographic expansion, broadly across the underwriting platform, which includes alternative risk Ryan Reed, as well as our newly announced sidecar rack re

Aided by an increasing demand for the build out of data centers.

Tim Turner: As well as the continued pursuit of future transactions as this year's M&A is next year's organic growth. Lastly, our confidence in continued growth across all three of our specialties. It is a very exciting time at Ryan Specialty, and we are taking advantage of the multiple pathways to strengthen our position as the global leader in specialty lines while staying focused on creating long-term sustainable value for our shareholders. Turning to our results by specialty, our wholesale brokered specialty had a great quarter. In property, we returned to growth through our relentless execution, winning a high % of new business in head-to-head competition, supported by high renewal retention, continued steady flow into the E&S channel, partially offset by the rapid decline in property pricing in Q3. We expect the fourth quarter to face continued deterioration of property pricing, given what looks like another benign hurricane season.

Further we also saw strength in a number of other lines, most notably transportation.

Contributions from recent m&a as well as the continued Pursuit Of Future transactions. As this year's m&a is next year's organic growth.

Hesitation risks public entities sports and entertainment.

Health care, social and human services and consumer product liability.

And lastly, our confidence and continued growth across all 3 of our specialties.

Our professional lines brokers remain resilient and resourceful and identifying new opportunities and despite ongoing pricing pressure they too.

It is a very exciting time at Ryan Specialty, and we are taking advantage of multiple pathways to strengthen our position as the global leader in specialty lines.

Has seen solid growth this quarter.

While staying focused on creating long-term sustainable value for our shareholders.

More broadly in casualty loss trends driven by both economic and social inflation continue to influence carriers to increase rates refine their appetite and in some cases stepped back from certain products.

Turning to our results by specialty, our wholesale brokerage specialty, had a great quarter.

As many of these risks move into the specialty and E&S markets.

In property, we returned to growth through our Relentless execution, winning a high percentage of new business and head-to-head competition supported by high renewal retention continued, steady flow into the ens Channel.

We continue to see the E&S market respond in a disciplined manner.

Partially offset by the rapid decline in property, pricing in Q3.

We believe that the need for the specialized industry and product level expertise that Ryan specialty offers has never been greater and our value proposition has never been stronger.

Tim Turner: However, our longer-term outlook remains optimistic given the frequency and severity of cat events, notwithstanding recent experience and the increasing population in cat-affected areas, creating an increased demand for E&S property solutions. With our deep capabilities, we will continue to deliver value for our trading partners and offer innovative products and solutions for the most complex issues our clients face, irrespective of the market cycle. We continue to expect property to be an important contributor to our growth over the long term. Meanwhile, our casualty practice continues to deliver very strong results, driven by excellent new business and high renewal retention. We were particularly pleased to see pockets of growth in our construction segment in the quarter, aided by an increasing demand for the build-out of data centers.

We expect the fourth quarter to face continued deterioration of property pricing given what looks like another benign hurricane season.

With typical loss trends likely to continue.

We see a long runway for sustained casualty pricing in the non admitted market.

However, our longer term Outlook remains optimistic, given the frequency and severity of cat events.

We remain confident that casualty will continue to be a strong driver of our growth moving forward.

Notwithstanding recent experience and the increasing population and Cat affected areas.

Creating an increased demand for ens Property Solutions.

And believe we will remain a leader in casualty solutions for years to come.

Now turning to our delegated authority specialties, which include both binding and underwriting management.

Our binding authority specialty continues to perform well driven by our top tier talent.

With our deep capabilities, we will continue to deliver value for our trading partners, and offer, Innovative products and solutions. For the most complex issues, our clients face irrespective of the market cycle.

And expanding product set for small tough to place commercial P&C risks.

We continue to expect property to be an important contributor to our growth over the long term.

We continue to believe that panel consolidation and binding authority remains a long term growth opportunity.

Meanwhile, our casualty practice continues to deliver very strong results.

Driven by excellent new business and high renewal retention.

And we are well positioned to serve our clients as this trend persists.

We were particularly pleased to see pockets of growth in our construction segment in the quarter.

Our underwriting management specialty also had a great quarter driven by excellent results in transactional liability reinsurance and casualty.

Tim Turner: Further, we also saw strength in a number of other lines, most notably transportation, habitational risks, public entities, sports and entertainment, healthcare, social and human services, and consumer product liability. Our professional lines brokers remain resilient and resourceful in identifying new opportunities, and despite ongoing pricing pressure, they too have seen solid growth this quarter. More broadly in casualty, loss trends driven by both economic and social inflation continue to influence carriers to increase rates, refine their appetite, and in some cases, step back from certain products. As many of these risks move into the specialty and E&S markets, we continue to see the E&S market respond in a disciplined manner. We believe that the need for the specialized industry and product-level expertise that Ryan Specialty offers has never been greater, and our value proposition has never been stronger.

Aided by an increasing demand for the buildout of data centers.

We had significant contributions from recent acquisitions, which added over 30 percentage points to the top line growth of underwriting management.

further, we also saw strength in a number of other lines most notably transportation

Habitational risks public entities.

Sports and entertainment.

Our recent cohort of acquisitions continues to deliver meaningful contributions to our long term delegated authority strategy.

Healthcare, social and Human Services and consumer product liability.

Our professional lines Brokers, remain resilient and resourceful and identifying new opportunities.

Reinforcing the value of our broader strategic approach.

And despite ongoing pricing pressure, they too.

Further within rsum we.

Have seen solid growth this quarter.

We recently launched rack re our flagship collateralized sidecar that adds meaningful diversified capacity to our underwriting platform.

<unk> innovative structure brings a large amount of committed capital.

More broadly in casualty loss, Trends driven by both economic and social inflation continued to influence carriers, to increase rates, refine their appetite and in some cases step back from certain products.

Which we will deploy over a two year period.

<unk> strengthens our ability to accelerate growth enhance flexibility through increased diversification of capital and respond swiftly to market opportunities further demonstrating our ability to adapt to the ever changing needs of the industry.

As many of these risks move into the specialty and ens markets.

We continue to see the ENS market respond in a disciplined manner.

Tim Turner: With typical loss trends likely to continue, we see a long runway for sustained casualty pricing in the non-admitted market. We remain confident that casualty will continue to be a strong driver of our growth moving forward and believe we will remain a leader in casualty solutions for years to come. Now turning to our delegated authority specialties, which include both binding and underwriting management. Our binding authority specialty continues to perform well, driven by our top-tier talent and expanding product set for small, tough-to-place commercial P&C risks. We continue to believe that panel consolidation and binding authority remain a long-term growth opportunity, and we are well-positioned to serve our clients as this trend persists. Our underwriting management specialty also had a great quarter, driven by excellent results in transactional liability, reinsurance, and casualty.

Stepping back our skill and discipline to manage these businesses to the current insurance cycle bolsters, our ability to deliver consistently profitable underwriting results growth and scale over the long term.

We believe that the need for the specialized industry and product level. Expertise that Ryan's specialty offers has never been greater and our value proposition has never been stronger.

With typical loss Trends likely to continue.

We see a long runway for sustained, casualty pricing in the non-admitted market.

We remain well positioned to capitalize on both organic and inorganic delegated authority growth opportunities.

We remain confident that casualty will continue to be a strong driver of our growth moving forward.

And believe, we will remain a leader in casual solutions for years to come.

Now turning to price and flow we have repeatedly noted that in any cycle as certain lines are perceived to reach pricing adequacy admitted markets have historically re-entered select placements.

Now, turning to our delegated authority specialties, which include both binding and underwriting management.

our binding Authority specialty continues to perform well.

Driven by our top tier Talent.

In this cycle, however that dynamic has not materialized in any meaningful way in the standard market has had little impact on overall rate or flow.

And expanding product set for small tough to place. Commercial PNC risks.

As we've consistently said.

We continue to expect the flow of business into the specialty and E&S market more so than rate to be a significant driver of Brian specialties growth over the long term.

We continue to believe that panel, consolidation and binding, Authority remains a long-term growth opportunity. And we are well, positioned to serve our clients as this trend, persists.

Tim Turner: We had significant contributions from recent acquisitions, which added over 30% to the top-line growth of underwriting management. Our recent cohort of acquisitions continues to deliver meaningful contributions to our long-term delegated authority strategy, reinforcing the value of our broader strategic approach. Further within RSUM, we recently launched RAC Re, our flagship collateralized sidecar that adds meaningful, diversified capacity to our underwriting platform. This innovative structure brings a large amount of committed capital, which we will deploy over a two-year period. RAC Re strengthens our ability to accelerate growth, enhance flexibility through increased diversification of capital, and respond swiftly to market opportunities, further demonstrating our ability to adapt to the ever-changing needs of the industry. Stepping back, our skill and discipline to manage these businesses through the current insurance cycle bolsters our ability to deliver consistently profitable underwriting results, growth, and scale over the long term.

Our underwriting management specialty also at a great quarter, driven by excellent results in transactional liability, reinsurance and casualties.

This was once again demonstrated in Q3 as the flow of business into the E&S channel remained steady across all lines.

Helping us deliver industry, leading organic growth.

We had significant contributions from recent acquisitions, which added over 30 percentage points to the topline growth of underwriting management.

Notwithstanding continued property pricing headwinds.

Turning to M&A.

This quarter, we closed on the acquisition of.

Our recent cohort of Acquisitions continues to deliver meaningful contributions to our long-term delegated authority strategy.

Of JM Wilson, which is an excellent addition to our binding authority and transportation offering.

Reinforcing the value of our broader strategic approach?

Further Within rsham.

Earlier this week, we announced the acquisition of Stewart specialty risk underwriting our SaaS are you.

With approximately $13 million annual revenue SSR U enhances our Canadian capabilities in key sectors, including construction transportation and natural resources.

We recently launched rack, REI our Flagship collateralized sidecar that adds meaningful Diversified capacity to our underwriting platform.

This Innovative structure brings a large amount of committed capital.

Which we will deploy over a 2-year period.

Rack re strengthens our ability to accelerate growth.

Further on the M&A front, our near term pipeline remains robust, including both tuck ins as well as large deals.

And enhance flexibility through increased diversification of capital and response, swiftly to market opportunities.

That said, we will only move forward when all of our criteria for M&A are met most notably a strong cultural fit strategic and accretive to the overall platform.

Further demonstrating our ability to adapt to the ever-changing needs of the industry.

To sum it all up this was an outstanding quarter for Ryan specialty, which is a testament to our day, one philosophy, our enduring value proposition and the overall durability of this platform.

Tim Turner: We remain well-positioned to capitalize on both organic and inorganic delegated authority growth opportunities. Now turning to price and flow, we have repeatedly noted that in any cycle, as certain lines are perceived to reach pricing adequacy, admitted markets have historically re-entered select placements. In this cycle, however, that dynamic has not materialized in any meaningful way, and the standard market has had little impact on overall rate or flow. As we've consistently said, we continue to expect the flow of business into the specialty and E&S market, more so than rate, to be a significant driver of Ryan Specialty's growth over the long term. This was once again demonstrated in Q3 as the flow of business into the E&S channel remained steady across all lines, helping us deliver industry-leading organic growth, notwithstanding continued property pricing headwinds.

Stepping back our skill and discipline to manage these businesses to the current Insurance cycle bolsters, our ability to deliver consistently profitable underwriting, results, growth and scale over the long term.

When we first started we had the vision to align our T specialty with the deep product expertise and skill set at Ryan specialty underwriting managers.

We remain well, positioned to capitalize on both organic and inorganic delegated authority growth opportunities.

As we continue building out our business through strategic investments in World class talent that vision is translating into meaningful results.

Now, turning to price and flow. We have repeatedly noted that in any cycle, as certain lines, are perceived to reach pricing adequacy, admitted markets, have historically re-entered, select placements,

In this cycle. However, that Dynamic has not materialized in any meaningful way.

As the destination of choice for the best talent in the industry.

Our winning and empowering culture and non stop focus on innovation continues to attract the best of the best and helps ensure our long term success.

And the Standard Market has had little impact on overall rate or flow.

as we've consistently said,

We continue to expect the flow of business, into the specialty and ens Market.

More so than rate.

Our scale scope and intellectual capital built over the past 15 years remains the foundation of our ability to continue winning and expanding our market share over time.

To be a significant driver of Ryan's Specialties growth over the long term.

This was once again, demonstrated in Q3 as the flow of business, into the ens Channel, remains steady across all lines.

Our platform is exceedingly difficult to replicate as we built our competitive moat and we will continue to invest further in our platform to widen the gap and our long term competitive advantages that clearly set us apart from the rest of the specialty industry.

Helping us deliver industry-leading organic growth.

Tim Turner: Turning to M&A, this quarter, we closed on the acquisition of JM Wilson, which is an excellent addition to our binding authority and transportation offering. Earlier this week, we announced the acquisition of Stewart Specialty Risk Underwriting, or SSRU. With approximately $13 million annual revenue, SSRU enhances our Canadian capabilities in key sectors, including construction, transportation, and natural resources. Further on the M&A front, our near-term pipeline remains robust, including both tuck-ins as well as large deals. That said, we will only move forward when all of our criteria for M&A are met, most notably a strong cultural fit, strategic, and accretive to the overall platform. To sum it all up, this was an outstanding quarter for Ryan Specialty, which is a testament to our day-one philosophy, our enduring value proposition, and the overall durability of this platform.

Notwithstanding continued, property pricing headwinds.

Turning to m&a.

This quarter, we closed on the acquisition.

With that I will now turn the call over to our CFO Janus Hamilton. Thank you.

Of JM Wilson, which is an excellent addition to our binding Authority and transportation offering.

Thanks, Tim in Q3 total revenue grew 25% period over period to $755 million. This strong performance was driven by organic revenue growth of 15% and substantial contributions from M&A, which added nearly 10 percentage points to our top line.

Earlier this week, we announced the acquisition of Stuart specialty risk underwriting or ssru.

With approximately $13 million in annual revenue, Ssru enhances our Canadian capabilities in key sectors.

Including construction transportation and natural resources.

Adjusted EBITDA grew 23, 8% to $236 million adjusted EBIT margin was 31, 2% compared to 31, 5% in the prior year period.

Further on the m&a, front are near-term, pipeline remains robust, including both tuck-ins as well as large deals.

Our strong revenue growth was more than offset by the significant investments made in talent, including the colleagues that recently joined Ryan Reed as a result of our expanded strategic relationships like nationwide.

Move forward. When all of our criteria for m&a are met.

Most notably, a strong cultural fit strategic and a creative to the overall platform.

In addition, we continued to execute on thoughtful strategic investments in recruiting at scale and in technology further positioning us for sustained strong growth going forward.

Tim Turner: When we first started, we had the vision to align our specialty with the deep product expertise and skill set at Ryan Specialty underwriting managers. Today, as we continue building out our business through strategic investments and world-class talent, that vision is translating into meaningful results. As the destination of choice for the best talent in the industry, our winning and empowering culture and nonstop focus on innovation continues to attract the best of the best. It helps ensure our long-term success. Our scale, scope, and intellectual capital built over the past 15 years remains the foundation of our ability to continue winning and expanding our market share over time.

Adjusted earnings per share grew 14, 6% to 47.

To sum it all up. This was an outstanding quarter for Ryan's specialty which is a testament to our day 1 philosophy, our enduring value proposition and the overall durability of this platform.

Our adjusted effective tax rate was 26% for the quarter.

Based on the current environment, we expect a similar tax rate for the fourth quarter of 2025.

When we first started, we had the vision to align RT specialty with the Deep product, expertise and skill set at Ryan's specialty underwriting managers.

Turning to our capital allocation M&A remains our top priority now and for the foreseeable future.

Today, as we continue building out our business through strategic investments and world-class talent, that vision is translating into meaningful results.

We ended the quarter at three four times total net leverage on a credit basis and remain well positioned within our strategic framework.

We remain willing to temporarily go above our comfort corridor of three to four times for compelling M&A opportunities that meet our criteria that Ken outlined earlier.

as the destination of choice, for the best talent in the industry, Our Winning and empowering culture and non-stop focus on Innovation continues to attract the best of the best and helps ensure our long-term success

Our robust free cash flow generation and strong balance sheet provide us with the flexibility to continue executing on strategic M&A opportunities.

Based on the current interest rate environment, we expect to record GAAP interest expense net of interest income on our operating fund of approximately $223 million in 2025 with $54 million to the expense in the fourth quarter.

Tim Turner: Our platform is exceedingly difficult to replicate as we've built a competitive moat, and we will continue to invest further in our platform to widen the gap in our long-term competitive advantages that clearly set us apart from the rest of the specialty industry. With that, I will now turn the call over to our CFO, Janice Hamilton. Thank you. Thanks, Jim. In Q3, total revenue grew 25% period over period to $755 million. This strong performance was driven by organic revenue growth of 15% and substantial contributions from M&A, which added nearly 10% to our top line. Adjusted EBITDA grew 23.8% to $236 million. Adjusted EBITDA margin was 31.2% compared to 31.5% in the prior year period.

Our scale scope and intellectual Capital, built over the past 15 years, Remains the foundation of our ability to continue winning and expanding our market share over time.

As a reminder, the interest rate cap, which helped generate significant savings over the last few years expires at the end of the year.

Our platform is exceedingly difficult to replicate as we built a competitive moat and we will continue to invest further in our platform to widen the Gap, in our long-term competitive advantages that clearly set us apart from the rest of the specialty industry.

Based on our current view of rates and at current debt levels. We would expect interest expense to be roughly flat in 2026 more than driven by the declining rate environment and the pace of M&A.

With that, I will now turn the call over to our CFO Janice Hamilton. Thank you.

Turning to guidance as we mature as a public company, we want to provide clarity on two key elements of our medium term financial guidance.

Thanks Tim in Q3 total revenue. Grew 25% period of period to 755 million

On organic growth, we are confident in our ability to deliver yet again, another year of double digit organic growth for the full year 2025.

This strong performance was driven by organic Revenue growth of 15% and substantial contributions from m&a which added nearly 10 percentage points to our Top Line.

As Tim outlined we are in a great position to sustain this level of full year organic growth into 2026.

Tim Turner: Our strong revenue growth was more than offset by the significant investments made in talent, including the colleagues that recently joined Ryan Re as a result of our expanded strategic relationship with Nationwide. In addition, we continue to execute on thoughtful strategic investments in recruiting at scale and in technology, further positioning us for sustained strong growth going forward. Adjusted earnings per share grew 14.6% to $0.47. Our adjusted effective tax rate was 26% for the quarter. Based on the current environment, we expect a similar tax rate for the fourth quarter of 2025. Turning to our capital allocation, M&A remains our top priority now and for the foreseeable future. We ended the quarter at 3.4 times total net leverage on a credit basis and remain well-positioned within our strategic framework.

Adjusted EBIT grew 23.8% to $236 million. The adjusted EVAC margin was 31.2%, compared to 31.5% in the prior year period.

And we believe we will consistently deliver industry, leading organic growth on an annual basis moving forward.

An adjusted EBITDA margin for the full year 2025, we are now guiding to an adjusted EBITDA margin that could be flat to modestly down as compared to the prior year, which reflects our recent execution to capitalize on the unique opportunities Pat outlined earlier.

Our strong Revenue growth was more than offset by the significant Investments made in Talent. Including the colleagues that recently joined Ryan Reed. As a result of our expanded strategic relationship with Nationwide.

In addition we continue to execute on thoughtful, strategic investments in recruiting at scale and in technology further positioning us for sustained. Strong growth growing forward.

With that said this could move modestly based on our recruiting efforts over the next few months.

Adjusted earnings per share. Grew 14.6% to 47 cents.

While these initiatives will continue to create near to medium term margin pressure, we want to emphasize that recruiting training developing and retaining talent is the most impactful and most accretive investment we can make.

Our adjusted effective tax rate was 26% for the quarter.

Based on the current environment, we expect a similar tax rate for the fourth quarter of 2025.

As a result of our progress in Q3 and in light of the significant opportunities outlined by Tim We are deferring the 2027 timeline for our previously communicated 35% adjusted EBITDA margin target.

Turning to our Capital, allocation m&a remains our top priority now and for the foreseeable future.

Tim Turner: We remain willing to temporarily go above our comfort corridor of three to four times for compelling M&A opportunities that meet our criteria that Tim outlined earlier. A robust free cash flow generation and strong balance sheet provide us with the flexibility to continue executing on strategic M&A opportunities. Based on the current interest rate environment, we expect to record GAAP interest expense, net of interest income on our operating funds of approximately $223 million in 2025, with $54 million to be expensed in the fourth quarter. As a reminder, the interest rate cap, which helped generate significant savings over the last few years, expires at the end of the year. Based on the current view of rates and at current debt levels, we'd expect interest expense to be roughly flat in 2026, more driven by the declining rate environment and the pace of M&A.

We ended the quarter at 3.4 times total net leverage on a credit basis and remain well positioned within our strategic framework.

This exemplifies our commitment to long term value creation of reinsurance to short term benchmarks.

However, looking ahead, we anticipate modest margin expansion in those years, while maintaining the flexibility to prioritize strategic investments, particularly those in talent de Novo formation innovative products and solutions M&A and technology.

We remain willing to temporarily go above our comfort. Corridor of 3 to 4 times for compelling m&a opportunities, that meet our criteria that Tim outlined earlier.

A robust, free cash flow generation and strong balance sheet. Provide us with the flexibility to continue executing on strategic m&a opportunities.

Our overarching focus moving forward is on continuing to swiftly grow our business to enhance our position as a global leader in specialty lines.

Based on the current interest rate environment, we expect to record Gap. Interest expense, net of interest income on our operating funds of approximately 223 million in 2025 with

We believe this is the best way to ultimately drive and create additional long term value for our shareholders.

54 million to be expensed in the fourth quarter.

As we close out 2025, we expect to see a continued decline in property pricing coupled with the potential for heightened competition during the fourth quarter, our second largest property corner.

As a reminder, the interest rate cap which helps generate significant savings over the last few years expires, at the end of the year.

Yet in the face of these challenging market conditions, we are extremely proud of the resilience of our team as we pursue our 15th consecutive year of double digit organic growth.

Tim Turner: Turning to guidance, as we mature as a public company, we want to provide clarity on two key elements of our medium-term financial guidance. On organic growth, we are confident in our ability to deliver yet again another year of double-digit organic growth for the full year 2025. As Tim outlined, we are in a great position to sustain this level of full-year organic growth into 2026. We believe we will consistently deliver industry-leading organic growth on an annual basis moving forward. On adjusted EBITDA margin for the full year 2025, we are now guiding to an adjusted EBITDA margin that could be flat to modestly down as compared to the prior year, which reflects our recent execution to capitalize on the unique opportunities Pat and Tim outlined earlier. With that said, this could move modestly based on our recruiting efforts over the next few months.

Based on the current view of rates and at current debt levels, we'd expect interest expense to be roughly flat in 2026, more driven by the declining rate environment and the pace of m&a.

Looking ahead, we see significant opportunity to continue establishing ourselves as the destination of choice for the industry's best talent.

Turning to guidance as we mature, as a public company, we want to provide Clarity on 2 key elements of our medium-term financial guidance.

Other differentiating ourselves as a preeminent firm in our specialty lines insurance sector for decades to come.

On organic growth. We are confident in our ability to deliver yet again, another year of double digit. Organic growth to the full year 2025.

With that we thank you for your time I would like to open up the call for Q&A operator.

As Tim outlined, we are in a great position to sustain this level of full year or organic growth into 2026.

At this time, if you would like to ask a question. Please click on the raise hand button, which can be found on the black bar at the bottom module screen you may remove yourself from the queue at any time by narrowing Johan <unk> Youll hear named code and receive a message on your screen off control needs. Please on mute and ask your question.

And we believe we will consistently deliver industry-leading organic growth, on an annual basis moving forward.

<unk> to allow the queue to form.

On adjusted Eva deck margin for the full year 2025. We are now guiding to an adjusted. Eva deck margin that could be flat to modestly down as compared to the prior year, which reflects our recent execution to capitalize, on the unique opportunities, Pat and Tim outlined earlier.

Tim Turner: While these initiatives will continue to create near to medium-term margin pressure, we want to emphasize that recruiting, training, developing, and retaining talent is the most impactful and most accretive investment we can make. As a result of our progress in Q3 and in light of the significant opportunities outlined by Tim, we are deferring the 2027 timeline for our previously communicated 35% adjusted EBITDA margin target. This exemplifies our commitment to long-term value creation over adherence to short-term benchmarks. However, looking ahead, we anticipate modest margin expansion in most years while maintaining the flexibility to prioritize strategic investments, particularly those in talent, de novo formations, innovative products and solutions, M&A, and technology. Our overarching focus moving forward is on continuing to swiftly grow our business to enhance our position as a global leader in specialty lines.

Our first question will come from Elyse Greenspan from Wells Fargo. Please on mute your line and ask you a question.

With that said, this could move modestly based on a recruiting efforts over the next few months.

Alright. Thanks.

Evening, I was hoping to spend more time.

Pressure. We want to emphasize that recruiting training developing and retaining. Talents is the most impactful and most accretive investment we can make

Unpacking, the 15% organic growth.

Especially like you guys had provided down.

Last quarter. So it seems like the 15% was probably above what you guys had expected when we connected a few months ago. So can you just like help US help me break it down between how much came in at 15%.

As a result of our progress in Q3 and in light of the significant opportunities outlined by Tim. We are deferring. The 2027 timeline for our previously, communicated 35% adjusted, Eva deck margin Target.

This exemplifies our commitment to long-term value creation, over adherence to short-term benchmarks.

First as rates.

New initiatives and anything that you can you was there anything one off relative to the 15% that you guys pointed in the quarter.

Okay.

However, looking ahead, we anticipate modest margin expansion in most years while maintaining the flexibility to prioritize strategic Investments, particularly those in talents denovo, formations Innovative products and solutions, m&a and Technology.

Hey Ali.

As Janet so thanks for the question, we had a great quarter as everyone said already topline growth, 25% adjusted EBITDA growth of 24%.

Tim Turner: We believe this is the best way to ultimately drive and create additional long-term value for our shareholders. As we close out 2025, we expect to see a continued decline in property pricing, coupled with the potential for heightened competition during the fourth quarter, our second largest property quarter. Yet, in the face of these challenging market conditions, we are extremely proud of the resilience of our team as we pursue our 15th consecutive year of double-digit organic growth. Looking ahead, we see significant opportunity to continue establishing ourselves as the destination of choice for the industry's best talent, further differentiating ourselves as a preeminent firm in the specialty lines insurance sector for decades to come. With that, we thank you for your time and would like to open up the call for Q&A. Operator.

Our overarching Focus moving forward is on continuing to swiftly, grow our business, to enhance our position as a global leader in specialty lines.

We think that that really does reflect the investments that we've made.

We believe this is the best way to ultimately drive and create additional long-term value for our shareholders.

The platform.

Set ourselves up.

Perform exceptionally well going forward and you could really see the evidence of that this quarter you alluded to the fact that last quarter I mentioned that we anticipated that two third and fourth quarters fourth quarter will be lower effectively than our guide range in Q3 would be higher.

As we close out 2025, we expect to see a continued decline in property pricing

Coupled with the potential for heightened competition.

During the fourth quarter, our second largest property quarter.

Or is that just based on business mix that we experienced and that was part of the reason we don't guide by quarter. If you look to what happens in the first half of the year in Q1 relative to Q2, we anticipated a similar dynamic in the third and fourth quarters. This year.

Yet, in the face of these challenging market conditions, we are extremely proud of the resilience of our team as we pursue our 15th consecutive year of double-digit organic growth.

Overall, though we grew significantly from a casualty perspective across all of our specialty can talk a little bit about what the drivers of sapphire.

Looking ahead, we see significant opportunity to continue establishing ourselves as the destination of choice for the industry's best talent further differentiating ourselves as a preeminent, firm in the specialty lines Insurance sector for decades to come.

Tim Turner: At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. You may remove yourself from the queue at any time by lowering your hand. When it's your turn, you'll hear your name called and receive a message on your screen asking to unmute. Please unmute and ask your question. We'll wait for a moment to allow the queue to form. Our first question will come from Elyse Greenspan from Wells Fargo. Please unmute your line and ask your question. Hi, thanks. Good evening. I was hoping to spend more time, you know, unpacking the 15% organic growth. You know, especially like you guys had revised down guidance last quarter.

With that, we thank you for your time and would like to open up the call for Q&A operator.

Largely submission growth.

New business as well as high renewal retention across the board.

Property, Tim also mentioned in the discussion that we actually grew this quarter and that was driven by new business and high renewal retention as well as continued steady flow.

At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen.

Yeah.

You may remove yourself from the Queue at any time by lowering your hand. When it's your turn, you'll hear your name called, and receive a message on your screen asking to unmute. Please, unmute, and ask your question.

We also saw pockets of growth within construction largely based on the build out of data centers can be large and lumpy. So to your point earlier, that's an area that we do expect to continue as the opportunity for growth, but it may not always be consistent.

Wait, for a moment to allow the queue to form.

Our first question will come from Elise. Greenspan from Wells Fargo, please unmute your line and ask your question.

We've also seen significant and great underwriting results across transactional liability driven by increased capital markets activity second solution reinsurance as well as from all of our acquisitions.

Tim Turner: It seems like the 15% was probably above what you guys had expected when we connected a few months ago. Can you just help me break it down between, you know, how much came on that 15% from submissions versus rates versus new initiatives and anything that you can—was there anything one-off relative to the 15% that you guys printed in the quarter? Hi, Elyse, this is Janice. Thanks for the question. We had a great quarter, as everyone has said already. Top line growth 25%, the adjusted EBITDA growth of 24%. We think that really does reflect the investments that we've made in the platform that we've set ourselves up to perform exceptionally well going forward. You could really see the evidence of that this quarter.

We believe we have been fairly well placed to continue to win across the board and that was evident this quarter.

Anything you want to add on.

No I think Thats <unk>.

Says it all thank you.

Okay.

And then I guess I guess.

Expand on that like Im looking at the revenue breakdown right and I know that that's an all in basis.

Hi, thanks. Um, good evening. Um, I was hoping to spend more time, um, you know, unpacking, the 15% organic growth, um, you know, especially like you guys had revised down science last quarter. So it seems like it's a 15% was probably above what you guys had expected when we connected a few months ago. So can you just like help help me break it down between, you know, how much came I'm at 15% from submissions versus rates versus new initiatives and anything that you can, is there anything 1 off relative to the 15th?

Lasalle.

% that you guys printed in the quarter.

Right it looks like wholesale grew by 9% and it was pretty.

17% and binding authority, but underwriting management right.

66%.

So I'm just trying <unk> was some of that construction stuff that youre pointing to you was that more on the binding and underwriting side that that's what drove.

Outside.

Revenue growth in those two businesses in the quarter.

Tim Turner: You alluded to the fact that last quarter I mentioned that we anticipated that between the third and fourth quarters, fourth quarter would be lower effectively than our guide range and Q3 would be higher, largely just based on the business mix that we experienced. That was part of the reason we also don't guide by quarter. If you look to what happened in the first half of the year when Q1 relative to Q2, we anticipated a similar dynamic in the third and fourth quarters this year. Overall, we grew significantly from a casualty perspective across all of our specialties. Tim can talk a little bit about what the drivers of that were, but largely, you know, submission growth and new business as well as high renewal retention across the board.

Yes, please I'd say underwriting.

In the third quarter actually is drastically different than what we've seen in prior quarters, there continuing to see really strong underwriting growth just based on continued investment there.

I called out structured solutions for insurance and our acquisition, but also a transactional base business such as transactional liability or would have been flat.

Capital markets activity this quarter.

Hey, at least this is, uh, this is Janice. So, thanks for the question. You know, we had a great quarter as everyone has said already, Topline growth 25%, the adjusted Eva deck growth is 24%, you know, we, we think that that really does reflect the Investments that we've made in the platform that that we've set ourselves up to, to perform exceptionally well going forward. And you could really see the evidence of that this quarter. You alluded to the fact that last quarter, I mentioned that, you know, we anticipated that between the 3rd and fourth quarters, fourth quarter would be lower effectively than our guide range in Q3 would be higher largely just based on business mix that we experience and that was part of the reason. We also don't guide by quarter. If you look to what happened in the first half of the year, when q1 relative to Q2, we anticipated a similar dynamic in the third, and fourth quarters this year.

Actions build out that's primarily in the wholesale book of business, but again I mentioned the casualty with strong also across the board.

Well.

Thanks, Myles here, we appreciate it.

Alright.

I'll go ahead, just to decompose the bid those numbers are obviously total and so they are representing the annualized <unk> of a very successful and material M&A campaign in the last 18 months.

Tim Turner: Property, Tim also mentioned in the discussion that we actually grew this quarter, and that was driven by new business and high renewal retention as well as continued steady flow into the E&S channel. We also saw pockets of growth within construction, largely based on the buildout of data centers. Those can be large and lumpy. To your point earlier, that's an area that, you know, we do expect to continue the opportunity for growth, but it may not always be consistent. We've also seen significant and great underwriting results across transactional liability driven by increased capital markets activity, structured solutions, reinsurance, as well as from all of our acquisitions. We believe we've been really well placed to continue to win across the board, and that was evident this quarter. Tim, is there anything you'd want to add on casualty or property? No, I think that says it all.

Overall, though we grew significantly from a casualty perspective across all of our specialties. I can talk a little bit about what the drivers of that were, but largely, you know, submission growth and new business, as well as high renewal retention across the board.

Property Tim also mentioned in the discussion that we actually grew this quarter, and that was driven by new business and higher renewal retention, as well as continued steady flow into the ENF channel.

But they also below that they do represent.

We also saw pockets of grosses in construction.

Sustained increases in PC collection representatives of our profitable underwriting across the cycle.

And then as Janice said.

Strong organic growth that we remain really proud of.

Largely based on the buildout of data centers. Those can be large and lumpy. So to your point earlier, that's a, that's an area that, you know, we do expect to continue the opportunity for growth, but it may not always be consistent.

And then my last question you guys came over collect you might've changed on you were talking about titles like okay.

Double digit growth for this year is that you mean, you think you will comment on <unk> for the fourth quarter will be a decent T cell phone like the 11% year to date or is that just setting like kind of a low bar for the full year.

We've also seen significant and great underwriting results across transactional liability, driven by increased capital markets activity, structured solutions, reinsurance, as well as from all of our acquisitions.

we believe we've been really well, placed to continue to win across the board, and that was evident this quarter can if anything you'd want to add on casualty for property,

Tim Turner: Thank you. I guess just to expand on that, like I'm looking at the revenue breakdown, right? I know that that's an all-in basis, but wholesale. It looks like wholesale grew by 9%, and there was pretty, you know, 17% in binding authority, but underwriting management, right, grew 66%. I'm just trying—was, you know, some of that construction stuff that you're pointing to, was that more on the binding and underwriting side that that's what drove the outside, you know, revenue growth in those two businesses in the quarter? Yeah, Elyse, I'd say underwriting growth in the third quarter actually isn't drastically different than what we've seen in prior quarters there. We continue to see really strong underwriting growth just based on continued investment there.

no, I think that's

says it all. Thank you.

Yeah.

You're absolutely right we are.

Adjusting the way in which we're talking about guidance going forward to align more with the common industry practice.

Yes double digits from where we were guiding last quarter 911, obviously preference to double digits for up to 10.

Expand on that. Like, I'm looking at the revenue breakdown, right? And I know that that's an all-in basis, but wholesale, um,

When you think about the fourth quarter.

I mentioned earlier, we anticipated.

Any headwinds in the business mix that we're expecting to see in the core part of the drive relatively lower organic growth compared to Q3.

The headwinds that I mentioned, both properties are continuing to expect 20%, 30% rate reduction as well as increased market competition, just as we get closer to the end of the fourth quarter.

Was it looks like wholesale grew by 9% and it was pretty, you know, 17% in binding, Authority, but under writing management, right? Grew 66%. Um, so I'm just trying was you know some of that construction stuff that you're pointing to was that more on the binding and underwriting side, that that's what drove. Um the outside um you know, Revenue growth in those 2 businesses in the quarter

Yeah. At least I'd say under writing uh,

In the third quarter actually is in drastically different.

Im going on that we saw last year, and we expect well avail. This quarter this year.

Tim Turner: I called out structured solutions, reinsurance, and our acquisitions, but largely transactional-based business such as transactional liability where we had the influx from all of the capital markets activity this quarter. Construction from the buildouts, that's primarily within the wholesale book of business. I mentioned that casualty was strong also across the board, across all three. Elyse is smiling here. We appreciate it. Oh, sorry. Just to decompose, those numbers are obviously total, and so they are representing the annualization of a very successful material M&A campaign in the last 18 months. They also, below that, do represent sustained increases in QC collection representative of our profitable underwriting across the cycle. As Janice said, strong organic growth that we remain really proud of. My last question, you guys change—it looks like you might have changed how you're talking about guidance. Is it double digits for this year?

We also expect just based on what we've seen to date in construction or how.

How much the additional interest rate cut that was announced yesterday will do to get more shovels in the ground on that.

It could be a headwind, but there's also the potential for additional data center build outs that I called out earlier.

In addition to that just broader economic uncertainty around government shutdown transaction liability practice.

Seen in in Prior quarters there, if you continue to see really strong underwriting growth, just based on continued investment there. Um, I called out structured Solutions, reinsurance and our Acquisitions, but largely transactional based business such as transactional, liability or we had the influx from all of the capital markets activities, this quarter, uh, construction from the, the buildout that primarily is in the wholesale book of business. But again, I mentioned the casualties with strong

across all 3.

But you're absolutely right that thinking about the double digits.

Well, and also smiles. Here, we appreciate sorry.

The 10% of vegetables or.

What we're calling out but just overall, we would expect the fourth quarter to have lower organic growth.

Right.

Thank you.

I mean, just to decompose the the the those numbers are obviously total and so that they are representing the annualization of a, a very successful material m&a campaign in the last 18 months.

Our next question will come from Alex Scott from Barclays. Please on the July and ask your question.

Hey, Thanks for taking the question.

Um, but they also below that they do represent, uh, sustained increases in in PC collection, representative of our profitable underwriting across the cycle.

First one I had.

Yes.

And then, as Janice said, uh, strong organic growth that we remain really proud of,

The margins in <unk>.

Thinking through the back part of the year totally makes sense that there'd be some pressure related to building out a team for the nationwide.

Tim Turner: Is that to mean that you think you will come in at 10%, right? The fourth quarter will be a decent decel from the 11% year to date, or is that just setting kind of a low bar for the full year? Elyse, you're absolutely right. We are adjusting the way in which we're talking about guidance going forward to align more with the common industry practice. Double digits from where we were guiding last quarter, 9% to 11%, obviously the reference to double digits brings the floor up to 10%. When you think about the fourth quarter, as I mentioned earlier, we anticipated that the property headwinds and the business mix that we're expecting to see in the fourth quarter would drive relatively lower organic growth compared to Q3.

Transaction in particular, because revenue yet, but you've got the expenses I get that are.

Are there things like that where you have to build out sort of may.

Maybe.

We are ahead of when you actually begin getting revenue with other types of business as we kind of go into next year.

And then, um, my last question. Um, you guys changed? It looks like you might have changed. Now, you're talking about guidance, like is a double digits for this year. Is that to mean that you think you will come in at 10%, right? So the fourth quarter will be a decent D cell from like the 11th year to date or is that just setting like kind of a a low bar for the full year.

And the reason I ask is.

If you don't have I guess similar set up then.

Would you still expect to get some margin improvement in 'twenty six or.

Is it something thats, just going to get pushed out here further.

Yes, so I'll start that one and then Ken I think you can maybe talk a little bit about having investment.

The team we've been talking about.

So Alex we certainly called out and the reference to the fact that.

Tim Turner: Some of the headwinds that I mentioned, property, we're continuing to expect 20% to 30% rate reductions as well as increased market competition just as we get closer to the end of the fourth quarter, a phenomenon that we saw last year and we expect will still prevail this quarter for this year. We also expect, just based on what we've seen today in construction or how much the additional interest rate cut that was announced yesterday will do to get more shovels in the ground on that business. It could be a headwind, but there's also the potential for additional data center buildouts that I called out earlier. In addition to that, broader economic uncertainty around the government shutdown, transactional liability for us could be a headwind. You're absolutely right that thinking about the double digits and the 10% effectively is the floor, is what we're calling out.

Building out.

The least you're absolutely right. We are adjusting the way in which we're talking about guidance. Going forward to to align more with the common industry practice. So the, you know, double digits from where we were, uh, guiding last quarter, 9 to 11, obviously the reference to double digits spring the floor up to 10. Um, you know, when we, when we think about the fourth quarter, as I mentioned earlier, we anticipated that, you know, the property headwinds and the business mix that, we're expecting to be in the fourth quarter of the drive, relatively lower organic growth, compared to Q3, uh, some of the headwinds that I mentioned. So property were continuing

Right, Yes, the issue Mike.

Appointed to underwrite four we brought on a number of teammates from <unk>.

Our power over the last quarter.

The margin headwinds, we talked about that last quarter and then in this quarter.

To expect 20 to 30% rate, reductions as well as increased Market competition. Just as we get closer to the end of the fourth quarter, uh a phenomenon that we saw last year and we expect will still Prevail this quarter but this this year

Yes. They are all out it's just starting to build out more of a change from an alternative rate perspective.

It is an area, where we are anticipating revenues in the future.

We are seeing level.

We also expect just based on you know what we've seen State and construction or or you know, not sure how much the additional interest rate cuts that was announced yesterday, will do to get more shovels in the ground on that business. So it could be a headwind but there's

Yes, starting to build out new products and solutions.

The potential for additional data center building out that I called out earlier.

And Thats why we mentioned that on the call and then as it relates to other talent Tim mentioned this in his prepared remarks that we have had a significant opportunity to invest in.

Um, in addition to that, just broader economic uncertainty around the government shutdown. You know, transactional liability for us to be a headwind

Andre.

Which at this point.

Tim Turner: Overall, we would expect the fourth quarter to have lower organic growth than the third. Thank you. Our next question will come from Alex Scott from Barclays. Please unmute your line and ask your question. Hey, thanks for taking the question. The first one I had for you is on the margins. Just thinking through the back part of the year, it totally makes sense that there would be some pressure related to building out a team for the Nationwide transaction in particular because you do not have revenue yet, but you have the expenses. I get that. Are there things like that where you have to build out practically ahead of when you actually begin getting revenue with other types of businesses as we go into next year?

Begin to come online.

We often see that theyre not accretive until the second or third year and so that is a lot of the near to medium term margin pressures are coming from that we called out can you talk a little bit more about that opportunity sure from the very beginning we built the business by investing strategically whether in talent de novo's <unk>.

But you're absolutely right that thinking about the double digits and you know, the the 10% effectively is the floor. Uh, is is what we're calling out, but just overall we would expect

To have lower organic growth than than the Third.

Thank you.

Our next question will come from Alex. Scott from Barclays. Please I'll meet you online and ask your question.

Acquisitions are technology.

Hey uh, thanks for taking the question. Um,

You've seen us do this in many different aspects over the last few years.

We've constantly anticipated where the market's going and we benefited immensely from those investments.

We're also focused on operational excellence.

We can always become more efficient we know that.

Yeah. The first 1 I had via is is on the the margins and you know just thinking through the back part of the year you know totally makes sense that there would be some pressure related to building out a team for the Nationwide transaction in particular because you don't have Revenue yet but you got the expenses I get that um are there things like that?

Excited about the business alignment and operational alignment that we have with our new co President's there'll.

There'll be working across the business throughout the system in a collaborative way.

Tim Turner: The reason I ask is, if you do not have a similar setup, then would you still expect to get some margin improvement in 2026, or is it something that's just going to get pushed out further? Yeah, I'll start that one. Tim, I think you can maybe talk a little bit about how the investment in the teams works that we've been talking about on the call. Alex, you certainly called out the reference to the fact that building out from the Markel renewal rights deal that Nationwide did, that we've been appointed to underwrite for, we brought on a number of teammates from Markel over the last quarter. That is part of the margin headwind. We've talked about that in the last quarter and then in this quarter. The other callout was just starting to build out more of the team from an alternative risk perspective.

We're happy to make that trade off on margins over the near term or when the balance shifts in favor of larger growth opportunity. So we're very focused on margin and we're optimistic.

Where you have to build out sort of, you know, maybe, you know, proactively ahead of when you actually begin getting Revenue with other types of businesses. We kind of go into next year. Um, and and the reason I ask is, you know, if you if you don't have like a similar setup, then you know, would you still expect to get some margin Improvement in 26, or you know, is it, is it something that's just going to get pushed out here further?

Through 2006 in the future.

I would just clarify for 2026 because of the timing of when a lot of these new hires will be coming on 2026 will again be a significant or a big investment year. So we would still anticipate those margin pressures going into 2026.

Yeah, so I'll start that 1 and then Tim, I think you can maybe talk a little bit about how the investment in the the team work that we've been talking about on the call.

Mentioned, the two to three year kind of two years.

Three years to start to become margin accretive.

<unk> thousand 26, and will depend also on how successful we are on the continuation of our recruitment efforts for the remainder of the year, but I just want to make sure that it's clear going forward absent a significant investment year like we talked about this year that will continue to play through into 'twenty six.

To underwrite for, you know, we brought on a number of teammates, uh, from Markel over the last quarter, that is part of the the margin headwind. We've talked about that in the last quarter, and then in this quarter, um, the other call out was just starting to build out more.

Tim Turner: That is an area where we are anticipating revenue growth in the future, but we are seeing those employees starting to build out new products and solutions. That's why we mentioned that on the call. As it relates to other talent, Tim mentioned this in his prepared remarks, that we have had a significant opportunity to invest in underwriting talent, which at this point, as they begin to come online, we often see that they're not accretive until the second or third year. That is where a lot of the near to medium-term margin pressures are coming from that we called out. Tim, do you want to talk a little bit more about that opportunity? Sure. From the very beginning, we built the business by investing strategically, whether in talent, de novos, acquisitions, or technology. You've seen us do this in many different aspects over the last few years.

Early 2027, we would expect to see modest margin improvement.

But we want to make sure that we're still giving ourselves the flexibility to prioritize strategic investments.

Alternative risk perspective. Um, that is an area where, you know, we are anticipating Revenue growth in the future, but, you know, we are, we are seeing those employees, um, you know, starting to to build out new new products and solutions. Um, so that's why we mentioned that on the call and then as it relates to other talents, uh, Tim mentioned this in his prepared remarks but we have had a significant opportunity to invest in

Got it that's all clear thanks, Thank you for that.

The second one I had fees on.

Construction part of your business I mean, it sounds like this quarter was good because you had some lumpy.

Win or wins there.

But I guess when I when I think about it more broadly is that.

Going from being a headwind.

Beginning to open up was that just a one off I'm just trying to understand how to think about construction, particularly with.

And under, uh, which at this point, you know, as they begin to come online, you know, we often see that they're not creative until the second or third year. Uh, and so that is where a lot of the New York to medium-term margin pressures are coming from, uh, that we called out. Can you talk a little bit more about that opportunity? Sure, from the very beginning, we built the business by investing strategically, whether in talent denovos.

Acquisitions or technology.

And the newly acquired business coming online.

Tim Turner: We've constantly anticipated where the market's going, and we've benefited immensely from those investments. We're also focused on operational excellence. We can always become more efficient. We know that. Very excited about the business alignment and operational alignment that we have with our new Co-Presidents. They'll be working across the business throughout the system in a collaborative way. We're happy to make that trade-off on margins over the near term or when the balance shifts in favor of larger growth opportunities. We're very focused on margin, and we're optimistic through 2026 and the future. I would just clarify for 2026, because of the timing of when a lot of these new hires will be coming on, 2026 will, again, for us, be a significant or a big investment year. We would still anticipate those margin pressures going into 2026.

You've seen us do this in many different aspects over the last few years.

And what that looks like in <unk> in terms of year over year comps and so forth.

Absolutely well Myles Robert I'll start with the underwriting side, which is <unk>.

We've constantly anticipated where the Market's going and we benefited immensely from those Investments.

We're also focused on operational excellence.

Predominantly.

We can always become more efficient. We know that

Property side of construction and ill hand, it over to Tim but I.

I think.

very excited about the business alignment and operational alignment that we have with our new co-presidents.

My message is going to be relatively consistent from the prior quarter. So.

There are headwinds persisting that we want to acknowledge so.

They'll be working across the business, throughout the system, in a collaborative way.

Borrowing costs remain elevated.

Tariffs are real high inflationary costs remain around building inputs.

There is an emerging labor shortage likely emanating from.

Um we're happy to make that trade uh on margins over the near term or when the balance shifts in favor of larger growth opportunities. So we're we're very focused on margin and we're we're optimistic.

A more robust stance.

On immigration.

All that said, though we're seeing great slow in the space. So.

We have exceptional product set to win both large mid and small I'd want to emphasize I think we highlighted on the last call.

Tim Turner: I mentioned the two to three-year kind of mark, two to three years to start to become margin accretive. 2026 will depend also on how successful we are on the continuation of our recruitment efforts for the remainder of the year. I just want to make sure that it's clear going forward. Absent a significant investment year like we've talked about this year that will continue to play through into 2026 and early 2027, we would expect to see modest margin improvement, but we want to make sure that we're still giving ourselves the flexibility to prioritize these strategic investments. Got it. That's all clear. Thank you for that. The second one I had for you is on the construction part of your business. It sounds like this quarter was good because you had some lumpy win or wins there.

Through 26 in the future. Yeah, I I would just clarify for 2026 because of the, the timing of when a lot of these, uh, new hires will be coming. On 2026, will again for us, be a significant or a big investment year. So we would still anticipate those margin. Pressures going into 2026

U S assured was our acquisition into the SME specialty space technical risk underwriting was a longstanding de novo in the large and complex.

We utilize the best components of both those practices to launch a mid market solution that's been effective.

For about a month thats accelerating growth.

So as Janice touched on we're absolutely feel we're winning theres just not enough.

I mentioned the the 2 to 3 year. Um, kind of Mark 2 to 3 years to, to start to become margin, a creative, um, so 2026 and and it will depend also on, you know, how successful we are on, on the continuation of our recruitment efforts for the remainder of the year, but I just want to make sure that it's clear, you know, going forward absent, a significant investment year. Like we talked about this year that will continue to play through into 26 and in early 2027, we would expect to see modest uh, margin improvements.

<unk> breaking going on right now so that the average time between quote and groundbreaking is protracted.

Um, you know, but we want to make sure that we're still giving ourselves the flexibility to prioritize these strategic Investments.

That said, we are deeply committed to this space.

The 5 million plus structural shortfall on available housing units in the U S persists.

Tim Turner: I guess when I think about it more broadly, is that going from being a headwind to beginning to open up, was that just a one-off? I'm just trying to understand how to think about construction, particularly with the newly acquired business coming online, what that looks like in Q4 in terms of your comps and so forth. Absolutely. Miles, I'm going to start with the underwriting side, which is predominantly property side of construction, and I'll hand it over to Tim. I think my message is going to be relatively consistent from the prior quarter. There are headwinds persisting that we want to acknowledge. Borrowing costs remain elevated. The tariffs are real, high inflationary costs remain around building inputs, and there is an emerging labor shortage likely emanating from a more robust stance on immigration. All that said, though, we're seeing great flow in the space still.

Got it. Uh that's all clear. Thank thank you for that. Uh Second 1 I had for you is on the construction uh part of your business. I mean it sounds like this quarter was good because you had some lumpy uh win or wins there. Um

And we do believe that the two rate cuts. So far this year are going to help flow into an end of the year.

And I would just add that we know from several metrics that we receive from our clients in the markets that we are industry, leading in construction in both property and casualty and so what new projects come into the pipeline.

But I guess when I, when I think about a more broadly is that, you know, going from being a headwind to, you know, beginning to open up. Was that just a 1-off? I'm just trying to understand how to think about, you know, construction, particularly with, uh, you know, the newly acquired business coming online. Um, you know what, what that looks like in 4 q in terms of your, your comps and so forth.

We're getting a high percentage of the opportunities there are quoted they are waiting for.

For the trigger and we're optimistic that we will be binding more of those but again that uncertainty is lurking.

It's important to know that a big part of our construction practice group is renewable property and casualty we have a very significant book of of general contractors subcontractors and artisan contractors at every level some of the largest in the country middle market and of course our.

Our small commercial is loaded with construction business. So we.

We keep a very close eye on it and we believe this environment could very well improve and we look forward to to binding some of these larger projects.

Absolutely, well, my job I'm gonna I'll start with the underwriting side which is uh predominantly uh property side of of construction. And I'll hand it over to Tim. But you know I I think our my my message is going to be relatively consistent from the prior quarter. So the there are headwinds persisting that we want to acknowledge. So uh, borrowing costs remain elevated. Uh, the tariffs are real high, high inflationary costs remain around building inputs. And, you know, there is an emerging labor shortage likely emanating from uh, you know, a a more robust stance on on immigration. Um,

Tim Turner: We have exceptional products set to win, both large, mid, and small. I'd want to emphasize, I think we highlighted on the last call. US Assured was our acquisition into the SME specialty space. Technical risk underwriting was a long-standing de novo in the large and complex. We utilized the best components of both those practices to launch a mid-market solution that's been effective for about a month that's accelerating growth. As Janice touched on, we absolutely feel we're winning. There's just not enough groundbreaking going on right now, so the average time between quote and groundbreaking is protracted. That said, we're deeply committed to the space. The $5 million-plus structural shortfall in available housing units in the U.S. persists. We do believe that the two rate cuts so far this year are going to help flow into the end of the year.

Got it thank you.

Our next question will come from Brian Meredith from UBS. Please on mute and ask your question.

Yes. Thank you a couple of them here first one I came I think I heard you correctly.

30 percentage points in your underwriting.

Management business of M&A, it would kind of imply like a 35% organic revenue growth rate in that business is that right and how sustainable is that type of organic revenue growth in that business.

So I think what we've said before Brian and I'll start with one of miles wants to add on as well, but I think we've always said that each of our specialties was built for double digit organic growth.

Certainly the opportunities within underwriting managers. This quarter there were a number of areas that were fueled by capital markets activity and other.

The construction piece and some of the items that Ken talked about.

Construction installations in reinsurance or we're continuing to expect that.

Tim Turner: I would just add that, you know, we know from several metrics that we receive from our clients and the markets that we're industry-leading in construction in both property and casualty. When new projects come into the pipeline, we're getting a high percentage of the opportunities. They're quoted, they're waiting for the trigger, and we're optimistic that we'll be binding more of those. That uncertainty is lurking. It's important to know that a big part of our construction practice group is renewable property and casualty. We have a very significant book of general contractors, subcontractors, and artisan contractors at every level. Some of the largest in the country, middle market, and of course, our small commercial is loaded with construction business. We keep a very close eye on it, and we believe this environment could very well improve, and we look forward to binding some of these larger projects.

There's just not enough, uh, groundbreaking going on right now, so that the average time between quote, uh, and groundbreaking is protracted. That said, um, we're deeply committed to the space. The 5 million plus structural shortfall in available housing units in the U.S. persists, and we do believe that the two rate cuts so far this year are going to help, uh, flow into the end of the year.

Underwriting managers will continue to contribute double digit organic growth.

But I would also call out that there are other reconciling items between.

And made about M&A and also organic growth just being that round profit Commission.

Yeah.

And I would add we have some tremendous growth in areas like transportation.

Social and human services.

Renewable construction as I mentioned.

Habitation will sports entertainment public.

Public entity and municipalities classes of business that are firming by the day.

Loss leaders in the reinsurance world and segments of the business, where our strategy has been highly effective we believe we have the best brokers and we built facilities behind it to strengthen our value proposition with the client.

So theres a lot of movement in that business.

Great growth opportunities.

Makes sense and then second question I'm, just curious does the market environment, meaning the pricing environment at all influence your court.

And I would just add that, you know, we know from several metrics that we received from our clients and the markets that were industry-leading in construction in both Property and Casualty. And so, what new uh, projects, uh, come into the pipeline. We're, we're getting a high percentage of the opportunities they're quoted. They're waiting, uh, for the trigger and we're optimistic that we'll be binding more of those, but again, that uncertainty is, is, is lurking. Um, it's important to know that a big part of our construction Practice Group is renewable Property and Casualty. We have a very significant book of of general contractor subcontractors and Artisan contractors at every level, some of the largest in the in the country Middle Market. And of course our our small commercial is loaded with construction business. So we we, uh, we keep a very close eye on it and we and we believe this

Tim Turner: Got it. Thank you. Our next question will come from Brian Meredith from UBS. Please unmute and ask your question. Yeah, thank you. A couple of them here. First one, Tim, I think I heard you correctly about 30% plus points in your underwriting management business of M&A. That would kind of imply like a 35% organic revenue growth rate in that business. Is that right? How sustainable is that type of organic revenue growth in that business? I think what we've said before, Brian, and I'll start this one if Miles wants to add on as well, but I think we've always said that each of our specialties is built for double-digit organic growth. We certainly saw the opportunities within underwriting managers this quarter.

The environment could very well improve, and we look forward to binding some of these larger projects.

Talent investment decisions like if we're in a softening kind of property market are you less likely to lean into that area.

Got it. Thank you.

Yes, it certainly influences our decisions in those areas.

Our next question will come from Brian Meredith from UBS, please unmute and ask your question.

Obviously things that our ultra soft like public D&O and cyber we backed off.

That build out over the last couple of years, but accelerated in professional liability and healthcare social and human services. We've mentioned our professional liability brokers, who are industry, leading pivoted and went deep into healthcare and social services and Thats paid off for us in a big way.

Yes. Thank you. A couple of them here. Um, first I I I Tim I think I heard you correctly um about 30% is plus points in your underwriting um uh management business of m&a, that would kind of imply, like a 35% organic Revenue growth rate in that business. Is that right now? How sustainable is that type of organic Revenue growth in that business?

Makes sense. Thank you.

Our next question will come from EMEA Shields from <unk>. Please on mute and ask your question.

Tim Turner: There were a number of areas that were fueled by capital markets activity and other, the construction piece and some of the items that Tim talked about. I mentioned structured solutions and reinsurance. We're continuing to expect that underwriting managers will continue to contribute double-digit organic growth. I would also call out that there are other reconciling items between the comments that Tim made about M&A and also organic growth, just seeing that around profit commissions. I would add, we have some tremendous growth in areas like transportation, social and human services, renewable construction, as I mentioned, habitational, sports and entertainment, public entity and municipalities, classes of business that are firming by the day, loss leaders in the reinsurance world, and segments of the business where our strategy has been highly effective.

Great hopefully im coming through.

Dennis you mentioned a couple of times the typical two to three year time horizon for full productivity.

And I'm wondering whether or maybe differently why the current situation.

So I, you know, I think what we've said before Brian and I I'll I'll start with 1 of miles wants to add on as well. But, you know, I think we've always said that, you know, each of our Specialties was built for double digit organic growth. Um, we certainly saw the opportunities within underwriting managers this quarter. There were a number of areas that were fueled by Capital markets activity and other, um, you know, the the construction piece and and, you know, some of the items that Tim talked about, I mentioned structured Solutions and reinsurance. So we're, we're continuing to expect that. Um, you know, underwriting managers will continue to contribute double digit organic growth. Um,

And then I think.

Underpinning the inverse.

Investment approach wouldn't that translate into defense their productivity basically if.

Also, call out that there are other reconciling items between, you know, the the comments that you made about m&a and also organic growth, just seeing that around traffic commissions.

Retailers are looking for an alternative wholesale broker.

Tim do you want to talk a little bit about the dynamics of bringing on additional talent I've mentioned before that it takes sometimes two to three years for them to become fully accretive it does and mayor.

We're always recruiting we're always training and developing opportunistic.

On hiring our competitors and other talented professionals around the industry, but it does take a couple of years for them to be accretive so theres a little bit of a hangover, we pointed that out.

Tim Turner: We believe we have the best brokers, and we've built facilities behind it to strengthen our value proposition with the client. There's a lot of movement in that business and great growth opportunities. Makes sense. My second question, I'm just curious, does the market environment, meaning the pricing environment, at all influence your, call it, talent investment decisions? Like if we're in a softening kind of property market, are you less likely to lean into that area? Yes, it certainly influences our decisions in those areas. Obviously, things that are ultra-soft, like public D&O and cyber, we backed off that build-out over the last couple of years, but accelerated in professional liability in healthcare, social and human services. We've mentioned our professional liability brokers who are industry-leading, pivoted and went deep into healthcare and social services, and that's paid off for us in a big way. Makes sense. Thank you.

And I would add, you know, we have some tremendous growth in areas, like Transportation, uh, social and Human Services, um, renewable, uh, construction, as I mentioned, um, habitational sports and entertainment, public entity, and municipalities classes of business that are firming by the day, uh, loss leaders in the reinsurance world. And segments of the business where our strategy has been highly effective. We believe we have the best brokers and we built facilities. Behind it to strengthen our value proposition with the client.

But again, we're very much opportunistic on that the timing of that isn't always perfect.

So there's a lot of movement in that business and great growth opportunities.

But it's all about a rated talent the highest caliber talent, we're constantly looking for it we know it is differentiating and when it's available and theyre knocking on our door, we seize the moment.

Makes sense. And then second question, I'm just curious, does the market environment meaning the pricing environment? Um, it all influence your call, um, you know, Talent investment decisions. Like if we're in a softening kind of property Market, are you less likely to lean into that area?

Okay.

I think I got it second question I'm, just curious of industry operations, we've heard a number of people including us.

You folks talk about maybe increasing competition for business to hit.

Yes, it's certainly influences our decisions in those in those areas. And, you know, obviously things that are Ultra Soft like, public dno and and cyber uh, we backed off. Uh,

Full year 2025 budgets.

Does that offer any opportunity for higher broker compensation.

No I would say.

It's most of it's formulaic.

That, uh, build out over the last couple years. But accelerated in professional liability, in healthcare, social and Human Services. We'd mentioned our professional liability brokers who are industry-leading pivoted and went deep into health care and social services, and that's paid off for us in a big way.

And very predictable.

Tim Turner: Our next question will come from Meyer Shields from KBW. Please unmute and ask your question. Great. Hopefully, we're coming through. Janice, you mentioned a couple of times the typical two to three-year time horizon for full productivity. I'm wondering whether, or maybe definitely why, the current situation that I think is underpinning the investment approach, wouldn't that translate into faster productivity basically if retailers are looking for an alternative wholesale broker? Tim, do you want to talk a little bit about the dynamics of bringing on this additional talent? I've mentioned before that it takes sometimes two to three years for them to become fully accretive. It does. We're always recruiting, we're always training and developing, we're opportunistic on hiring competitors and other talented professionals around the industry, but it does take a couple of years for them to be accretive.

Makes sense. Thank you.

Okay I appreciate that.

Yes, we are quite disciplined as an industry may Irwin.

Our next question will come from mayor Shields from KBW? Please unmute and ask your question.

Regardless of rate drifting up or down.

We look back over our published history, our net retains in both.

Underwriting in brokerage has remained pretty consistent.

Right understood. Thank you very much.

Thank you Tim.

Our next question will come from Andrew Carnegie demand from TV Cowen. Please on mute yourself and ask your question.

Is underpinning? The

Great. Thank you good evening.

I wanted to build out a little bit on some of the prior questions.

Investment approach. Wouldn't that translate into faster productivity? Basically, if uh, retailers are looking for an alternative wholesale broker?

Notably the recruitment.

Hirings.

Of talent because that seems like the only.

Constant to help gauge and one of the drivers of growth. So I'm kind of hoping that hey, you can you can kind of help frame.

Tim, do you want to talk a little bit about the Dynamics of bringing on this additional Talent? I've mentioned before that, it takes sometimes 2 to 3 years for them to become fully accredited. It does and mayor. Um, we're we're always recruiting. We're always training and developing opportunistic.

What was what was the growth in organic hires not acquired hires but the growth in organic hires over the last couple of years could you could you kind of help frame that.

Tim Turner: There's a little bit of a hangover, we pointed that out. We're very much opportunistic on that. The timing of that isn't always perfect, but it's all about A-rated talent, the highest caliber talent. We're constantly looking for it. We know it's differentiating, and when it's available and they're knocking on our door, we seize the moment. I think I get it. Second question, I'm just curious of industry operations. We've heard a number of people, including you folks, talk about maybe increasing competition for business to hit full-year 2025 budgets. Does that offer any opportunity for higher broker compensation? No, I would say not. Most of it's formulaic and very predictable. I appreciate that, thank you.

And.

And the part B if it is looking into the fourth quarter.

And looking at your.

Double digit guidance.

Math would be that you could do five or 6% organic growth and still hit.

The 10% for the year. So so the part B of the question is.

On on how hiring, uh, competitors and and other talented professionals around the industry, but it does take a couple of years for them to be a creative. So, there's a little bit of a hangover, uh, we pointed that out. Um, but again, we're, we're very much opportunistic on that the timing of that isn't always perfect. Um, but it's all about a-rated Talent, the highest caliber Talent, we're constantly looking for it. We know it's differentiating and when it's available, and they're knocking on our door, we, we seize the moment.

Are you feeling like you will be on the north side of the 10% in the fourth quarter or the lower side. I mean, you were a month into the fourth quarter.

Okay. Um, I think I get it. Second question. I'm just curious about industry operations. We've heard a number of people, including you folks, talk about maybe increasing competition for business to hit.

Are you thinking about that.

Well I'll take a part Andrew we know.

Full year 2025 budget.

Historically, the most accretive thing we can do is to recruit talent and to train and develop our own and so you know about the the Brian University or enter chip program, we're putting several hundred kids through that a year and we've been doing that for several years now we can see the clear pathway to the most.

Does that offer any opportunity for higher broker compensation?

No, I would say uh not it's it's most of its formulaic.

And, and very predictable.

Tim Turner: We're quite disciplined as an industry, when, you know, regardless of rate drifting up or down, if you look back over our published history, our net retains in both underwriting and brokerage has remained pretty consistent. Right. Understood. Thank you very much, Miles. And thank you, Tim. Our next question will come from Andrew Kligerman from TD Cowan. Please unmute yourself and ask your question. Great, thank you. Good evening. I wanted to build out a little bit on some of the prior questions, notably the recruitment and hiring of talent, because that seems like the only constant to help gauge, you know, one of the drivers of growth. I'm kind of hoping that, A, you can kind of help frame what was the growth in organic hires, not acquired hires, but the growth in organic hires over the last couple of years. Could you kind of help frame that?

Okay, I appreciate that. Thank you.

Accretive profitable thing, we can do is weave that into recruiting existing talent and building out. These teams. So that we can have the.

The industry, leading breadth and depth and niche is a business that get earn now we follow these niche firming phenomenons and Kenneth can accelerate with.

Yeah, we're we're quite disciplined as an industry mayor. When you know regards to rate drifting up or down, it's we've if you look back over our public history, our our net retains and both uh underwriting and brokerage has remained pretty consistent.

Right. Understood. Thank you very much, ma'am.

And thank you, Tim.

Deep bench strength, and that's really the key to capturing this business when the flow increases significantly.

Our next question will come from Andrew Callaghan from TD Cowen, please unmute yourself and ask your question.

And then okay.

From that Andrew So, yes, you mentioned the fourth quarter.

Said earlier, we always anticipated fourth quarter would have lower relative organic growth.

Great. Thank you. Good evening. I am, um, I wanted to build out a little bit on some of the, uh, prior questions, uh, notably the, uh, Recruitment and, uh, hiring as

<unk> checks out flat to be around 6%.

I mentioned that there were a number of different potential headwinds.

The macroeconomic uncertainty associated with construction and also capital markets activity for our transactional liability so theres an opportunity there for.

Of of talent because that seems like the only constant to help gauge, you know, 1 of the drivers of growth. So, I'm, I'm kind of hoping that a, you can, you can kind of help frame.

Lumpy.

Hey, guys lumpy bad guys effectively that we want to make sure that we had.

Tim Turner: The part B of it is looking into the fourth quarter, you know, and looking at your double-digit guidance, the math would be that you could do. 5 or 6% organic growth and still hit the 10% for the year. The part B of the question is, you know, are you feeling like you'll be on the north side of the 10% in the fourth quarter or the lower side? I mean, you know, we're a month into the fourth quarter. How are you thinking about that? I'll take part A, Andrew. We know historically the most accretive thing we can do is to recruit talent and to train and develop our own. You know about the Ryan University, our internship program. We're putting several hundred kids through that a year, and we've been doing that for several years now.

A range around internally and also property, we always anticipated that.

Assuming a benign hurricane season, which looks to be the case that we will continue to see that 20 to 30 basis points, 20% to 30% rate reduction.

And it's hard for us to put a number on the impact specifically for what that's going to look like in the fourth quarter. When we've got additional market competition. So we're comfortable with.

The increasing certainty around double digits.

But any more specifics around where we might set.

Top or bottom end of <unk>.

Thats a fair response.

I'll just end it with another tough question hopefully you can you can give us give me some direction on it.

What was, what was the growth in in, in organic, hires not acquired hires, but the growth in organic hires over the last couple of years. Could you, could you kind of help frame that and, you know, and and the part B of it is looking into the fourth quarter. Um, you know, and and and looking at your, uh, double digit guidance. Um, the math would be that you could do 5 or 6% organic growth and still hit the, the 10% for the year. So, so the part B of the question is, you know, are are you feeling like you'll? You'll be on the north side of the 10% in the fourth quarter or the lower side. I mean, you know, you you were a month into the, the fourth quarter. How how are you thinking about that?

So previously the way I was thinking about EBIT margin was it was 32% in 2024 and the likelihood it would be that it would kind of.

Came to 35% in 2027, and again very valid reasons for not getting there in 2007, but any way to kind of share your views on where it might go in 2007 or when you might get to 35%.

Tim Turner: We can see the clear pathway to the most accretive, profitable thing we can do is weave that into recruiting existing talent and building out these teams so that we can have the industry-leading breadth and depth in niches of business that get firmed. We follow these niche-firming phenomenons and can accelerate with deep bench strength. That's really the key to capturing this business when the flow increases significantly. I'll take part B from that, Andrew. You mentioned the fourth quarter. I said earlier we always anticipated that the fourth quarter would have lower relative organic growth. The math checks out. That's to be around 6%. I mentioned that there were a number of different potential headwinds, the macroeconomic uncertainty associated with construction and also capital markets activity for transactional liability.

It's a it's a fair question Andrew.

Well, I'll take uh, part part part, A Andrew, we know, uh, historically, the most accretive thing we can do is to recruit talent and to train and develop our own. And so, you know, about the, the Ryan University, our internship program. We're putting several hundred kids through that a year and we've been doing that for several years. Now, we, we can see the clear pathway to the most accretive profitable thing we can do is weave that into to recruiting existing talent and building out these teams so that we can have, you know, the industry-leading breadth and depth in niches of business that get burned.

When we when we think about the 35% target is achievable.

Now, we follow these niche firming phenomena and can accelerate with.

But as we've stated the fact that.

This unbelievable opportunity from a talent perspective.

deep bench strength and that that's really the key to capturing this business when the flow increases significantly,

The thing that we want to make sure that we have the opportunity and the capacity to capitalize on what is going to put us in a position to have margin pressures for 26, some of that continuing into 'twenty seven, but we believe going forward a modest amount of margin expansion is still reasonable to anticipate and so the walk to the 30.

And then I'll uh I'll take Part B from that Andrew. So yeah, you mentioned the fourth quarter, you know, I I said earlier we always anticipated that the fourth quarter would have lower relative organic growth. Uh the math checks out, so that's to be around 6%. Um you know I mentioned that there were a number of different potential headwinds

Five will certainly be slower and will take advantage of these opportunities when they come up whether that's in Cowen our technology right now the balance is shifting towards the investment as opposed to the margin expansion.

Tim Turner: There's an opportunity there for, you know, lumpy good guys, lumpy bad guys, effectively, that we want to make sure that we've had a range around internally. Also, property, we always anticipated that, assuming a benign hurricane season, which looks to be the case, we would continue to see that 20 to 30% rate reduction continue. It's hard for us to put a number on the impact specifically for what that's going to look like in the fourth quarter when we've got additional market competition. We're comfortable with the increasing certainty around double digits, but I'm not going to put any more specifics around where we might sit, the top or bottom end of what that could look like. That's a fair response. I'll just end it with another tough question. Hopefully, you can give me some direction on it.

Markets activity for transactional liability. So there's there's an opportunity there for, you know, Lumpy

Over time, I think it's fair to anticipate margin expansion modest margin expansion on an annual basis. Okay. Thank you much.

Our next question will come from Rob Cox from Goldman Sachs. Please on mute and ask your question.

Hey, Thanks question on the London operations.

Recently, we've been hearing some market commentary around disruptions surrounding the London specialty marketplace in at least one large retail broker discussing starting some operations there.

Good Guys. Lumpy bad guys effectively that that we want to make sure that we've had, you know, a range around internally. Um, also property, you know, we always anticipated that, you know, assuming a benign hurricane season, which looks to be the case that we would continue to see that 20 to 30 basis points, sorry, 20 to 30% rate reduction, uh, continue. And it's it's hard for us to put a number on the impact, specifically, for what that's going to look like in the fourth quarter when we've got, you know, additional Market competition. So we're, we're comfortable with with, you know, the, the increasing certainty around double digits. But I'm not going to put, uh, any more specifics around. You know, where we might sit the, the top or bottom end of what that could look like.

Those disruptions be a tailwind to your business can you talk about how brian's offering.

Stands out there in the defensibility of that business.

Tim Turner: Previously, the way I was thinking about EBITDA margin was it was 32% in 2024, and the likelihood would be that it kind of came to 35% in 2027. Again, very valid reasons for not getting there in 2027. Any way to share your views on where it might go in 2027 or when you might get to 35%? It's a fair question, Andrew. When we think about the 35%, the target is achievable. As we've stated, the fact that this unbelievable opportunity from a talent perspective is something that we want to make sure that we have the opportunity and the capacity to capitalize on, which is going to put us in a position to have margin pressures for 2026, some of that continuing into 2027. We believe going forward, a modest amount of margin expansion is still reasonable to anticipate.

Sure Bob I'll try to answer that.

First and foremost we always do what's in the best interest of our clients when it comes to approaching London.

No, it's it's a fair response and uh I'll just end it with a another tough question. Hopefully, you can, you can give us give me some direction on it. Um, so previously, the way I was thinking about, uh, ebit DAC, margin was, it was 32% in 2024 and the likelihood would be that it it kind of

Wholesale we're there to support the retailers and their most difficult placements, which oftentimes encompasses a full blown.

Marketing exercise, including London.

And we have a 15 year history of finding the best independent broker in London.

And as you know.

Came to 35% in in 2027 and again, you know, very valid reasons for, you know, not getting there in 27. But any any way to kind of share your views on where it might go in 27 or when you might get to 35%,

They use us when they need us and we use them when we need them.

And that need continues to grow.

Whats happened is theres been a little bit of shifting in London as we know.

And we are revisiting our strategy in London, and we're constantly looking at how we can improve our offerings to our clients.

Looking in and being sensitive to things like.

Conflicts channel conflicts and distribution friction so we're very sensitive to it.

We are again revisiting our strategy, there and we will keep everyone posted.

Tim Turner: The walk to the 35% will certainly be slower, and we'll take advantage of these opportunities when they come up, whether that's in talent or technology. Right now, the balance is shifting towards the investment as opposed to the margin expansion. Over time, I think it's fair to anticipate margin expansion, modest margin expansion on an annual basis. Thank you much. Our next question will come from Robert Cox from Goldman Sachs. Please unmute and ask your question. Hey, thanks. Question on the London operations. Recently, we've been hearing some market commentary around disruptions surrounding the London specialty marketplace and at least one large retail broker discussing starting some operations there. Could those disruptions be a tailwind to your business? Can you talk about how Ryan Specialty's offering stands out there and the defensibility of that business? Sure, Robert. I'll try to answer that.

Thank you that's helpful.

And then I just wanted to follow up on that.

Shifts.

From the E&S market to admitted or vice versa. It sounds like it's not happening on a broad basis still are there pockets, where you are seeing that and could you share any information on that by product or geography.

It's a, it's a fair question, Andrew. Um, you know, when we, uh, when we think about, you know, the the 35% it, the target is achievable. Um, but you know, as we've stated the, the fact that, you know, this, this unbelievable opportunity from a talent perspective. Uh, is something that we, we want to make sure that we have the, the opportunity and the capacity to capitalize on which is going to put us in a position to have, you know, margin pressures for 26. Some of that continuing into 27 but we believe going forward. A modest amount of margin. Uh, expansion is still reasonable to to anticipate and so you know the the walk to the 35 will certainly be slower and we'll, we'll take advantage of these opportunities when they come up, whether that's in Talent OR technology right now the balance is is Shifting towards the investment as opposed to the margin expansion. Um but you know over time I think it's fair to anticipate margin expansion. Modest margin expansion on an annual basis.

Okay, thank you much.

Our next question comes from Rob Cox from Goldman Sachs. Please unmute and ask your question.

We're really not that we haven't seen any measurable migration back into the admitted standard market.

It's been mostly competition within the non admitted surplus lines world.

That are driving rates down and property as an example.

So it's the secular and structural changes that we've seen over the last 20 years that have developed over 100.

Hey, thanks. I have a question on the London operations. Um, recently we've been hearing some market commentary around disruptions surrounding the London specialty marketplace and at least one large retail broker discussing starting some operations there.

Non admitted surplus lines platforms, including Mg use and many of the large standard admitted big brand companies have either bought or developed non admitted company. So the business is tending to stay in that channel.

You know, could those disruptions be a Tailwind to your business? And you can, can you talk about how Ryan's offering, uh, stands out there in the defensibility of that business?

Tim Turner: First and foremost, we always do what's in the best interest of our client when it comes to approaching London. In wholesale, we're there to support the retailers in their most difficult placements, which oftentimes encompasses a full-blown marketing exercise, including London. We have a 15-year history of finding the best independent broker in London. As you know, they use us when they need us, and we use them when we need them. That need continues to grow. What's happened is there's been a little bit of shifting in London, as we know, and we're revisiting our strategy in London. We're constantly looking at how we can improve our offerings to our clients, looking and being sensitive to things like conflicts, channel conflicts, and distribution friction. We're very sensitive to it. We are, again, revisiting our strategy there, and we will keep everyone posted. Thank you. That's helpful.

Sure, Bob. I'll try to answer that. You know, first and foremost, we always do what's in the best interest of our client when it comes to approaching London.

No there's no real reason to pull it back into admitted that that we can see so again the competition is really within the non admitted market.

Uh, in wholesale, we're there to support the retailers and the most difficult placements, which often times, uh, encompasses a full-blown, uh, marketing exercise including London, um, and we have a 15 year history of finding the best.

Okay.

Thank you Rob our next question will come from Bob Gwin from Morgan Stanley. Please Amit your line and ask a question.

Independent broker in in London. Uh and and as you know we

Hi, good.

Good afternoon so.

Maybe my first question is really a.

Question on your commentary.

Around AI machine learning so one of the major issues when we look at M&A roll up.

Is that over time, you will end up with multiple redundant systems from.

The IQ five data ends up getting siloed.

Multiple systems multiple passwords.

We're implementing AI projects, obviously, one of the problem is.

How to have connected data and then also have data governance regulating that just curious how youre thinking about aggregating data and as you continue to do more M&A in the market and then how youre thinking about that tech implementation.

they use us when they need us and we use them when we need them and that need continues to grow. But what's, what's happened is there's been a little bit of Shifting in London as we know. Uh, and and we're revisiting our strategy in London. And we're constantly looking at how we can improve our offerings to our clients. Um, looking at and, and, and being sensitive to things like uh, conflicts Channel, conflicts and distribution friction. So we're very sensitive to it. Uh, we we are again revisiting our strategy there and and we will keep everyone posted

Tim Turner: I just wanted to follow up on shifts from the E&S market to admitted or vice versa. It sounds like it's not happening on a broad basis still. Are there pockets where you are seeing that? Could you share any information on that by product or geography? We're really not, Bob. We haven't seen any measurable migration back into the admitted standard market. It's been mostly competition within the non-admitted surplus lines world that are driving rates down in property, as an example. It's the secular and structural changes that we've seen over the last 20 years that have developed over 100 non-admitted surplus lines platforms, including MGUs. Many of the large standard admitted big brand companies have either bought or developed non-admitted companies. The business is tending to stay in that channel. There's no real reason to pull it back into admitted that we can see.

Thank you, that's helpful.

As you are moving towards a more AI centric platform.

Bob I'm happy to start miles, if you want to add anything to that yes.

Yes, Bob I think.

And then, I just wanted to follow up on uh, shifts uh, from the ens Market to admitted or vice versa. Sounds like it's not happening on a broad basis, still are there Pockets where you are seeing that? And could you share any information on that by product or geography?

We've always been a very acquisitive company and technology is an area that sometimes acquisitions come with.

A very strong platform.

Income with the expectation that we're going to move on to Ryan specialty.

We're very thoughtful about how we approach that integration and the timing of it.

Continuing to enhance our own technology platforms to be able to utilize.

Data and AI obviously.

The transformation that has occurred and the AI industry over the last couple of years.

The opportunities continue to fall very significantly.

Sure that we're able to identify what the best opportunities are for consolidating our platform our data and be able to put at the top of it but even even in the absence of consolidated.

Competition within the non-admitted Surplus lines worlds um that are driving rates down in property as an example. Um, so it's it's the secular and structural changes that we've seen over the last 20 years. That if, if developed over a hundred, uh, non-admitted Surplus lines platforms, including mgus, and many of the large standard admitted Big Brand, companies have either bought or developed not admitted companies. So the the business is tending to stay in that channel.

There are solutions out there that today utilize a.

Tim Turner: The competition is really within the non-admitted market. Thank you, Rob. Our next question will come from Bob Hwang from Morgan Stanley. Please unmute your line and ask your question. Hi. Good afternoon. Maybe my first question is really a question on your commentary around AI machine learning. One of the major issues when we look at M&A roll-ups is that over time, you will end up with multiple redundant systems from the IT side, and then data ends up getting siloed, and then there are multiple systems, multiple passwords. As you're implementing AI projects, obviously, one of the problems is how to have connected data and also have data governance regulating that. Just curious how you're thinking about aggregating data as you continue to do more M&As in the market and then how you're thinking about that tech implementation as you're moving towards a more AI-centric platform. Yeah.

AI to get two submissions faster and faster.

Able to elevate the role at the underwriter.

There's no, there's no real reason to pull it back into admitted that that we can see. So again, the competition is really within the non-admitted market

Very much focused on all of those different use cases today are effective.

Our technology.

Okay.

Robert.

Well I'm just going to chime in Bob Everything you said is real and astute and spot on but I want to highlight a couple of kind of competitive advantages, Brian, especially underwriting matters that we've had over the years. So over the over the last 10 years, we've made great strides in putting all of them.

Thank you, rob. Our next question will come from Bob Wong from Morgan Stanley, please. I'll meet you online and ask a question.

Our end use onto centralized back office system.

Following the issuance of sub Roger.

And although certainly.

These new large acquisitions are currently operating and separate environments. We've got the great benefit of data scientists already owned staff actuaries on staff that data has been a big part of our ongoing success, we use it to raise new capital.

Hi, uh, good afternoon. So, um, maybe my first question is really a, uh, question on your commentary around AI and machine learning. So, one of the major issues, when we look at M&A roll-ups, uh, is that over time, you will end up with multiple redundant systems from, um, from the IT side, and then data ends up getting siloed. There are multiple systems and multiple passwords as you're implementing AI.

We use it to drive better results.

So the carriers so.

Projects obviously. 1 of the problem is uh, uh, how to have connected data, and also have, uh, data governance regulating that just curious how you're thinking about aggregating data. And as you continue to do more m&as in the market and then how you're thinking about that Tech implementation, uh, as you're moving towards a more, uh, AI Centric, uh, platform,

Do your comments are spot on but I do want to highlight some of the investments and structural advantages we have as a firm to manage those integrations okay.

Tim Turner: Bob, I'm happy to start. Miles, if you want to add anything to that. Yeah, Bob, I think, you know, we've always been a very acquisitive company. Technology is an area that, you know, sometimes acquisitions come with, you know, a very strong platform. Sometimes acquisitions come with the expectation that they're going to move on to the Ryan Specialty platform. We're very thoughtful about how we approach that integration and the timing of it. We're always continuing to enhance our own technology platforms to be able to utilize data and AI, obviously, with the transformation that has occurred in the AI industry over the last couple of years. The opportunities continue to evolve very significantly. It's always making sure that we're able to identify what the best opportunities are for consolidating our platforms, our data, and be able to put AI over top of it.

The Mgo point, it's very helpful. Thank you.

My second question is.

Around the organic growth I know a lot of people have talked about that already so apologies. If we went over this but if we were to think about.

New client growth.

And existing client growth rate.

Is there a way for us to kind of split out within casualty how much of that growth is new clients and how much of that is.

Bob, I'm happy to start miles if you want to add anything to that. Um, yeah. Bob, I think, you know, we've we've always been a very inquisitive company. Um, technology is an area that, you know, sometimes that positions come with, you know, a a very strong platform. Sometimes that positions, come with the expectation that they're going to to move on to the right specialty platform. And we're very thoughtful about, you know, how we approach that integration and the timing of it. Uh, we're always continuing to enhance our own technology platforms to be able to utilize

Existing clients is there a way for us to think about that from a casualty perspective.

Well I would say that the customer base in the client base has been consistent there as the top 100 tier one retailers global National regional.

Tim Turner: Even in the absence of consolidating all the platforms, there are solutions out there that today still utilize AI to get to submissions faster, to be able to clear faster, to be able to elevate the role of the underwriter. We're very much focused on all of those different use cases today, irrespective of the current technology landscape. Okay. Got it. No problem. I'm just going to chime in, Bob, that everything you said is real and astute and spot on. I want to highlight a couple of kind of competitive advantages of Ryan Specialty underwriting managers that we've had over the years. Over the last 10 years, we've made great strides in putting all of our MGUs onto a centralized back-office system. That's policy issuance. That's subledger.

40, plus private equity roll ups.

And then regional brokers, then there's tier two tier three tens of thousands of retail brokers. So we have we are marketing approaches and production approaches to all three layers of customers and we target them in different ways. So we're constantly rotating new marketing approach.

You know, data and AI obviously with with the the transformation that has occurred in the AI industry, over the last couple of years for you know the opportunities to continue to evolve very significantly and so it's always making sure that we're able to identify. You know, what, what's the best opportunities are for? Consolidating, our platforms our data, um, and be able to put AI over top of it. But even even in the absence of those consolidating, all the platforms there are solutions out there that today so that utilize AI to get to submissions faster to be able to clear faster, um, to be able to elevate the role of the underwriter.

And what we're very much focused on all of those different use cases. Today irrespective of the the current technology

Okay, got it. No.

And solutions to them based on their need profile and we get measure every year, we're RFP constantly in tier one and the top 100, and they give us data on where we stand with them.

Like our markets too so we know where we stand in terms of market share with that we know how much more is available for us to capture so it's a constant.

Tim Turner: Although certainly these new large acquisitions are currently operating in separate environments, we've got the great benefit of data scientists already on staff, actuaries on staff. That data has been a big part of our ongoing success. We use it to raise new capital. We use it to drive better results to the carriers. Your comments are spot on, but I do want to highlight some of the investments and structural advantages we have as a firm to manage those integrations. Okay. The MGU point is very helpful. Thank you. My second question is around the organic growth. I know a lot of people have talked about that already, so apologies if we went over this.

<unk> for us to rotate talent in different disciplines and different regions based on.

Well, I'm just going to chime in about that. Everything you said is is is is is real and astute and spot on. But I want to highlight a couple kind of competitive advantages of Ryan especially honoring matters that we've had over the years. So over the over the last 10 years we've we've made great strides in putting all of our mgus onto centralized back office system, that's that's policy. Issuance that sub Ledger and although certainly um the these new large Acquisitions are currently operating in separate environments.

Most of it driven by niche firming phenomenon, we shift talent into those areas very quickly.

So it's a.

It's a day to day.

Very active approach to the business with our retail customers.

Got it thank you very much.

Thank you and our final question today will come from Josh Shanker from Bank of America. Please go ahead well. Thank you for giving me an opportunity to ask a question.

We've got the great benefit of, uh, data scientists already on staff actuaries on staff. That that data has, has been a big part of our ongoing success. We, we use it to raise New Capital. We use it to drive, uh, better results to, um, to the carriers. So, I, I, I do the, your, your comments are are spot on. But I, I do want to highlight some of those Investments and structural advantages we have as a firm to to manage those Integrations.

A year ago I can imagine your kid in the Candy store looking at the market opportunity.

And you said you know what by 2027, we can focus on margins overgrowth and here. We are a year later I think youre still that Kim <unk> you realize how much opportunity there is.

Tim Turner: If we were to think about new client growth and existing client growth, is there a way for us to kind of split out within casualty how much of that growth is new clients and how much of that is existing clients? Is there a way for us to think about that from a casualty perspective? I would say that the customer base and the client base has been consistent. There's the top 100 tier one retailers, global, national, regional. The 40-plus private equity roll-ups, and then regional brokers. Then there's tier two, tier three, tens of thousands of retail brokers. We have marketing approaches and production approaches to all three layers of customers, and we target them in different ways. We're constantly rotating new marketing approaches and solutions to them based on their need profile. We get measured every year.

Okay, the the the mgu point is very helpful. Thank you. Um, my my second question is uh around the the organic growth. I know a lot of people have talked about that already so apologies if we went over this. But if we were to think about, uh, new client growth,

And uh, existing client growth, right? Is there a way for us to kind of

How does the opportunity set changed over the past nine or 12 months, but maybe you're reigning in saying now is not the time to focus on margins now is the time to focus on growth.

Could you split out, within casualty, how much of that growth is from new clients and how much of it is from existing clients? Is there a way for us to think about that from a casualty perspective?

Well the availability of talent is a big driver of that and there's lots of factors that create those opportunities changing situations with competitors.

Professional brokers and underwriters that want a change in their career path.

We've been a destination of choice and we've been very very fortunate that they knock on our door, we get opportunities with them, but the timing of that and the opportunities are never consistent they are lumpy when.

When we get those opportunities we have to move quickly and swiftly.

National Regional the, uh, 40, plus, private Equity rollups, uh, and then Regional Brokers. Then there's tier 2, tier 3, uh, tens of thousands of retail Brokers. So we have, we have marketing approaches and production approaches to to all 3 layers of customers and we target them in different ways. So we're constantly rotating new marketing approaches, and solutions to them based on their need programs.

And again.

Tim Turner: We're RFPing constantly in tier one in the top 100, and they give us data on where we stand with them, like our markets do. We know where we stand in terms of market share with them. We know how much more is available for us to capture. It's a constant challenge for us to rotate talent in different disciplines and different regions, most of it driven by niche firming phenomenons. We shift talent into those areas very quickly. It's a day-to-day, very active approach to the business with our retail customers. Thank you very much. Thank you. Our final question today will come from Josh Janka from Bank of America. Please go ahead. Thank you for giving me an opportunity to ask a question. A year ago, I can imagine you were a kid in a candy store looking at the market opportunity. You said, "You know what?

The number one most accretive thing we can do it as well.

They are just more opportunities now than there were a year ago, it's even better than it was a year ago.

Absolutely definitely.

It's also the attraction of our platform. So it's the investment we've made in.

Tools capabilities products access to distribution so.

I think in past calls we've spent a lot of time highlighting those investments is creating a destination of choice for <unk>.

And, and we get measured every year, we're we're RFP constantly in Tier 1, in the top 100, and they give us data on where we stand with them. And, and our like, our markets do. So we, we know where we stand in terms of market share with them, we know how much more is available for us to capture. So it's a, it's a constant, uh, challenge for us to rotate talent in different disciplines and different regions, you know, based on

Our organic talent as well as well as its played into destination choices and acquire.

Most of it, driven by Niche firming phenomenons. We shift Talent into those areas very quickly, um,

And when I come out with that.

Alright.

It's a day, you know, a very active approach to the business with our retail customers.

I was just going to add a little bit more on simply I mentioned earlier.

Bob's question with regard to AI, but just like the.

Got it. Thank you very much.

The changing landscape from a technology and AI perspective, there are certainly more opportunities today to be investing in technologies and wherever you are sitting in Europe.

And when.

Our partners see what you've done for Mark how long you're going to be doing for axis have you seen a big swelling of the pipeline opportunity for you in reinsurance.

Tim Turner: By 2027, we can focus on margins over growth." Here we are a year later. I think you're still that kid in a candy store, but you realize how much opportunity there is. How has the opportunity set changed over the past 9 or 12 months that you're reining in and saying, "Now is not the time to focus on margins. Now is the time to focus on growth"? The availability of talent is a big driver of that, and there's lots of factors that create those opportunities: changing situations with competitors, professional brokers, and underwriters that want to change in their career path. We've been a destination of choice, and we've been very, very fortunate that they knock on our door. We get opportunities with them. The timing of that and the opportunities are never consistent. They're lumpy.

Going forward from new burgers.

Thank you. And our final question today will come from Josh shankha from Bank of America. Please go ahead. Well, thank you for giving me an opportunity to ask a question. Uh, you know, a year ago, I can imagine you were a kid in the candy store looking at the market opportunity. And you, you, you uh, said you know what, by 2027, we can focus on margins overgrowth. And here we are a year later. I think you're still that kid in the candy store, but you realize how much opportunity there is

We think there is.

Yes.

This is pat but there are going to be.

Opportunities there were some discussions.

There are a lot of.

How is the opportunity to set changed over the past 9 or 12 months that that your raining in and saying now is not the time to focus on margins. Now is the time to focus on growth.

Quite a few subscale reinsurance.

A lot of people are looking at.

Should there be more focused on their core business and that was the Marco <unk>.

Isn't there.

We certainly.

I believe that.

We have a unique ability to fill that need because.

With the <unk>.

Very strong.

Sure.

Credit rating at <unk>.

Value of nationwide new tool.

Tim Turner: When we get those opportunities, we have to move quickly and swiftly. It's the number one most accretive thing we can do. It's more accretive, but more accretive, there's just more opportunities now than there were a year ago. It's even better than it was a year ago. Absolutely. Definitely. It's also the attraction of our platform. It's the investment we've made in tools, capabilities, products, access to distribution. I think in past calls, we spent a lot of time highlighting those investments as creating a destination of choice for organic talent, as well as it's played into destination of choice as an acquirer. I was just going to add a little bit more on.

We have an outstanding leadership team.

Standing.

Pretty much.

Underwriters.

Laser <unk>.

Well, the availability of talent is a Big Driver of that. And there's lots of factors that, uh, create those opportunities changing situations with competitors. Um, professional, uh, Brokers and Underwriters. That want to change in their career path. Um, we've been a destination of choice and we've been been very, very fortunate that they knock on our door and we get opportunities with them, but the timing of that and the opportunities are never consistent, they're lumpy. And when we get those opportunities we have to move quickly and swiftly. And and and again it's the number 1. Most accretive thing we can do its

So.

Industry is recognizing that.

Reinsurance.

Becoming a much more.

Is there just more opportunities now than there were a year ago? It's it's even better than it was a year ago.

More important functional contribution to our capacity.

This is big.

Brought into the E&S market.

So yes.

There's just a lot more focus on reinsurance.

Uniquely our position.

Chris.

Brian exclusively.

And while mutual reinsurance.

And our tower.

To seize those opportunities as they unfold.

Absolutely, definitely. When it's it's also the, the attraction of our platform. So it's the investment we've made in, uh, tools capabilities products access to to distribution. So, we, you know, I think in past calls, we spent a lot of time highlighting those Investments as creating a destination of choice for for organic Talent, as well, as well as it's played into destination choices and acquire.

We can't predict.

And when it comes to that,

Sorry.

When or how many.

Tim Turner: I mentioned earlier Bob's question with regard to AI, but just with the changing landscape from a technology and AI perspective, there are certainly more opportunities today to be investing in technology than where we were sitting a year ago. When partners see what you've done for Markel and what you're going to be doing for Axis, have you seen a big swelling of the pipeline opportunity for you in reinsurance going forward from new partners? We think that there is. This is Pat, that there are going to be additional opportunities. There are some discussions being held. There are quite a few subscale reinsurance. A lot of people are looking at should they be more focused on their core business. That was the Markel decision there.

But clearly there is interest.

Thank you very much.

Thank you that concludes the Q&A session I will now turn the call over to management for closing remarks.

Well. Thank you very much for your good questions. Your continued support.

I was just going to add a little bit more on. I mentioned earlier, thoughts question with regard to AI, but just with the the changing landscape from a technology and AI perspective, there's certainly more opportunities today to be investing in technology than than where we were sitting a year ago.

Look forward to talking to you again.

From now thank you.

And when, um, a Partners, see what you've done for Markle and what you're going to be doing for Access, uh have you seen a big swelling of the pipeline opportunity for you and reinsurance going forward from new bargearse?

we think that there is

This is Pat that there are going to be additional opportunities. There are some discussions being held

um, there are a lot of

Quite a few subscale reinsurance.

A lot of people are looking at.

Should they be more focused on their Core Business? And that was the Markle.

Tim Turner: We certainly believe that we have a unique ability to fill that need because we have the very strong credit rating and brand value of Nationwide Mutual. We have an outstanding leadership team, outstanding teammates, the underwriters behind that leadership team.

decision that

um,

We certainly.

Believe that.

We have a unique ability to fill that need because we have the ...

very strong. Um,

Credit rating and brand value of Nationwide. Mutual

And we have an outstanding leadership team.

Outstanding.

Pat Ryan: The industry is recognizing that reinsurance is becoming a much more important functional contribution to a capacity that needs to be brought into the E&S market. Yeah, there's just a lot more focus on reinsurance. We uniquely are positioned with this brand exclusive with Nationwide Mutual on reinsurance and our talent to seize those opportunities as they unfold. We can't predict when or how many, but clearly there's interest.

That leadership.

So, the industry is recognizing that.

reinsurance is becoming a much more, um,

more important functional contribution to.

The capacity that needs to be.

Brought into the ens Market.

so,

Yeah, there's just a lot more focus on reinsurance. Um, we uniquely are position.

This.

Brand exclusively Nationwide, neutral on reinsurance and our talent to seize those opportunities as they unfold.

We can't predict.

Tim Turner: Thank you very much.

when or how many, but clearly there's interest

Operator: Thank you. That concludes the Q&A session. I will now turn the call over to management for closing remarks.

Thank you very much.

Pat Ryan: Thank you very much for your good questions and your continued support. We look forward to talking to you again a quarter from now. Thank you.

Thank you. That concludes the Q&A session. I will now turn the call later to management for closing remarks.

Well, thank you very much for your good question and your continued support. I look forward to talking to you again a quarter from now. Thank you.