Chicago-headquartered Ryan Specialty, the international specialty insurance firm, has signed a definitive agreement to acquire Velocity Risk Underwriters LLC from funds managed by Oaktree Capital Management LP.

Velocity Risk generated approximately $81 million of operating revenue for the 12 months ended December 31, 2024 and is to be acquired by Ryan Specialty for an upfront cash consideration of $525 million, subject to customary purchase price adjustments.

The acquiree was founded in 2015 by Bermudian-based Nephila Capital, and later acquired by funds managed by Oaktree.

Based in Nashville, Velocity is a managing general underwriter providing first-party insurance coverage for catastrophe exposed properties and will become a part of the Ryan Specialty underwriting managers division.

As a component of this transaction, and subject to regulatory approval, Velocity’s wholly owned E&S carrier, Velocity Specialty Insurance Company will be acquired by FM, a commercial property mutual insurance company representing many of the world’s largest organisations, including one of every four Fortune 500 companies.

The upfront cash consideration to be paid by Ryan Specialty is exclusive of VSIC and any earnout consideration.

Miles Wuller, president and chief executive of Ryan Specialty Underwriting Managers, said: “Adding Velocity to our property catastrophe portfolio significantly enhances our ability to serve our wholesale clients and further solidifies Ryan Specialty Underwriting Managers as the pre-eminent delegated authority platform in the country.”