Velocity, a managing general underwriter (MGU) specializing in first-party insurance coverage for catastrophe-exposed properties, will now operate within the Ryan Specialty Underwriting Managers division.

The acquisition, initially announced on Jan. 7, expands Ryan Specialty’s presence in the property catastrophe insurance market.

Founded in 2015, Velocity focuses on US property catastrophe risks, providing coverage for perils such as named storms, earthquakes, tornadoes, and hail. The company primarily serves middle-market and small to medium-sized commercial businesses, with a strong geographic presence in Florida, Texas, and the Southeast.

As part of the transaction, Velocity’s excess and surplus (E&S) carrier, Velocity Specialty Insurance Company (VSIC), will be acquired by FM, a commercial property mutual insurer. The VSIC acquisition remains subject to regulatory approval.

For the 12 months ending Dec. 31, Velocity generated approximately $81 million in operating revenue. Ryan Specialty is acquiring the company for an upfront cash consideration of $525 million, subject to customary purchase price adjustments. The purchase price does not include VSIC or any potential earnout consideration.

Miles Wuller (pictured above), president and CEO of Ryan Specialty Underwriting Managers, said that the addition of Velocity strengthens the firm’s property catastrophe portfolio and reinforces its position as a leading delegated authority platform.

“This talented team has developed robust technology, portfolio management, and data analytics capabilities that augment their innovative underwriting and claims approach. We are looking forward to having the Velocity team as a part of the Ryan Specialty family,” Wuller said.

The firm’s last major deal closed in November, with Ryan Specialty acquiring Innovisk Capital Partners from Abry Partners and BHMS Investments, LP and incorporating the firm into Ryan Specialty Underwriting Managers.