Ryan Specialty Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Receivables and Current Assets

Receivables and Current Assets

12 Months Ended

Dec. 31, 2021

Receivables And Current Assets [Abstract]

Receivables

The Company had receivables of $210.3 million and $177.7 million outstanding as of December 31, 2021 and 2020, respectively, which were recognized within Commissions and fees receivable—net in the Consolidated Balance Sheets. Commission and fees receivable is net of an allowance for credit losses.

Allowance for Credit Losses

The Company’s allowance for credit losses with respect to receivables is based on a combination of factors, including evaluation of historical write-offs, current economic conditions, aging of balances, and other qualitative and quantitative analyses.

The following table provides a rollforward of the Company’s allowance for expected credit losses:


	Year Ended December 31,
	2021			2020
Beginning of period	$	2,916		$	1,555
Write-offs		(2,636	)		(731	)
Increase in provision		2,228			2,092
End of period	$	2,508		$	2,916

Other Current Assets

Major classes of other current assets consist of the following:


	Year Ended December 31,
	2021		2020
Prepaid expenses	$	13,434	$	11,973
Service receivables(1)		644		508
Deferred offering costs(2)		—		1,459
Other current receivables		1,804		1,131
Total other current assets	$	15,882	$	15,071

(1) Service receivables contain receivables from Geneva Re, Ltd. Further information regarding related parties is detailed in Note 21, Related Parties.

(2) Deferred offering costs consist of legal, accounting, and other fees related to the IPO. Deferred offering costs totaling $13.2 million were offset against the proceeds upon the completion of the IPO in July 2021. Total offering costs related to the IPO were $90.1 million, including these deferred offering costs and the underwriting discount.