BORN WITH IT


He has nothing to prove and enough money, reputation and goodwill to enjoy a very happy retirement. Yet at the age of 74, former Aon chairman Pat Ryan is doing it all again with his new company, Ryan Speciality Group. He tells Intelligent Insurer about his plans, his principles and how he remains motivated.


both in the insurance industry and outside it that is beyond reproach. Unlike some of his peers, he has maintained dignity and respect throughout the various scandals that have engulfed the industry in recent years.


T He would also appear to have no shortage of other vocations he could


devote his time to: he is happily married to wife Shirley, with whom he has three children and many more grandchildren, and his expertise—and wealth—are in demand in many other areas. He is a shareholder in American football team, the Chicago Bears, a benefactor to arts organisations such as the Art Institute of Chicago, the famous Lyric Opera of Chicago, and to Northwestern University, one of the US’s most prestigious universities, with two major athletics facilities there named after him.


In recent years, Ryan has also started to dabble in politics. He hosted


fundraisers for US President George W Bush, was the only Republican among five co-chairs of President Barack Obama’s inaugural committee, and, in 2009, served as the chief executive of Chicago’s unsuccessful bid to host the 2016 Olympics (the games were eventually awarded to Rio de Janeiro).


Yet, almost 50 years since he started his first business—in 1964, an auto


credit insurer called Pat Ryan & Associates which went on to become Aon Corporation—two years ago, aged 72, he started it all again. With nothing to prove and, arguably, a lot more to lose, the ink had barely dried on his farewell card from Aon when he was back behind a new desk, launching a new company in new offices in Chicago. Ryan Speciality Group (RSG) was born.


What is more, his vision the second time around is no less ambitious—


and this time he has the benefit of a vast wealth of experience and an even bigger book of contacts to call upon. He has hit the ground running with no fewer than 11 acquisitions or start-ups in the first two years and has generated well over $1 billion worth of revenues already.


To those who know Ryan, what he has done and already achieved comes


as no surprise. And he is equally nonchalant about it. “I think I was probably born with it,” he jokes when asked where, after almost 45 years of building one business, he has found the drive to start another. “I have always enjoyed creating and building companies and so that is what I want to do now.


o industry outsiders, or those who don’t know Pat Ryan, it might seem madness. He is a self-made billionaire, worth an estimated $1.4 billion according to the Forbes 2010 list, with a reputation


“I am an entrepreneur but not one who likes to start companies and


then flip them quickly. I like to build and develop them. I am very proud of what I achieved with Aon but now I want to do it again. I am far more than just an investor in this business: I am in the office from 7:30am to 6:30pm every day and when I am not here I am travelling, or out meeting clients. I have a great team around me and I want to be involved in the building of a company that will add value and bring solutions to the insurance industry and fill a real need.”


THE VISION Ryan believes that at a time of rapid technological advancement and, as such,


an ever faster change in the complexity of risks, there is a gap in the market for a provider of speciality broking services and solutions. Partly in response to the wider short-term economic downturn, many of the bigger players have stepped away from this fast-moving arena, leaving a gap and an opportunity. RSG will plug this through a highly specialist wholesale brokerage and an assortment of managing general agents (MGA) and managing general underwriters (MGU), most of which it will acquire and integrate into its own business.


As one would expect from someone with his vast experience and


pedigree, Ryan is shrewd and considered when explaining why he sees this as an opportunity. “If you look at the specialty market, if you have the talent and expertise you can always bring value-added products and services to the market,” he says. “That has been my experience over a long time and it can be achieved in two ways.


“On the wholesale brokerage side, I saw an opportunity in specialty areas


such as complex construction and property risks and D&O liability risks. I also believed that the big global brokers would be pulling back from this area. They would be looking to cut costs and seeking better efficiencies, and aiming to have fewer broad relationships as opposed to many smaller or narrower ones. We have seen this happen and it is continuing.


“On the MGA and MGU side, we also saw a need for independent


specialist players who are able to take on complex and speciality risks in areas such as transactional insurance, construction risks, healthcare products and a number of other fields. We felt with really strong underwriting expertise, we could provide a value-added service to the market.”


Spring 2012 | INTELLIGENT INSURER | 9


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