Ryan Specialty Holdings Inc. (RYAN) announced on Tuesday its commitment through a definitive agreement to acquire Velocity Risk Underwriters. This Nashville-based underwriter is set to be obtained from Oaktree Capital Management for an initial cash payment of $525 million.
Velocity Risk is known for its expertise in first-party insurance coverage, catering to properties susceptible to catastrophic events such as named storms, earthquakes, and tornadoes in the U.S.
As part of this transaction, Velocity's excess and surplus carrier, Velocity Specialty Insurance Co., will be acquired by FM, a mutual insurance company with a focus on commercial property.
The completion of the acquisition is anticipated in early 2025.
