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

Annual report pursuant to Section 13 and 15(d)

Restructuring

Restructuring

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

In February 2023, the Company initiated the ACCELERATE 2025 program that will enable continued growth, drive innovation, and deliver sustainable productivity improvements over the long term. The restructuring plan aims to reduce costs and increase efficiencies through a focus on optimizing the Company’s operations and technology. In its expanded form, the restructuring plan is expected to incur total restructuring costs of approximately $90.0 million through December 31, 2024 and to generate annual savings of approximately $50.0 million in 2025. The total expected costs of the plan include $50.0 million related to operations and technology optimization, $25.0 million related to employee compensation and benefits, and $15.0 million related to asset impairment and other termination costs.

The table below presents the restructuring expense incurred:


	Year Ended December 31, 2023
Operations and technology optimization	$	25,995
Compensation and benefits		11,320
Asset impairment and other termination costs		11,057
Total	$	48,372

During the year ended December 31, 2023, the Company recognized restructuring expenses of $22.6 million, including contractor costs, in Compensation and benefits, and $25.8 million in General and administrative expense on the Consolidated Statements of Income.

The table below presents a summary of changes in the restructuring liability:


	Operations and Technology Optimization			Compensation and Benefits			Asset Impairment and Other Termination Costs			Total
Balance at January 1, 2023	$	—		$	—		$	—		$	—
Accrued costs		33,979			11,320			11,057			56,356
Payments		(28,093	)		(10,240	)		(10,620	)		(48,953	)
Non-cash adjustments		—			—			(437	)		(437	)
Balance at December 31, 2023	$	5,886		$	1,080		$	—		$	6,966

Accrued costs in the table above include both costs expensed and capitalized during the period. As of December 31, 2023, $5.3 million of the restructuring liability was included in Accounts payable and accrued liabilities and $1.7 million was included in Current Accrued compensation on the Consolidated Balance Sheets.