Shares of Ryan Specialty Group Holdings, Inc. (RYAN) plunged more than 5% in pre-market trading on Wednesday, despite the company reporting robust financial results for the third quarter of 2024.

The specialty insurance firm reported a 20.5% increase in total revenue to $605 million, driven by organic growth of 11.8%. Adjusted EBITDA surged 29.4% to $190 million, with the adjusted EBITDA margin expanding by 220 basis points to 31.5%. Adjusted diluted earnings per share grew 28% to $0.41, slightly missing analyst estimates of $0.42.

While RYAN's overall performance was strong, the pre-market sell-off appears to be driven by concerns over potential headwinds in the property and casualty insurance markets. During the earnings call, RYAN acknowledged facing short-term headwinds due to property rate deterioration, which accelerated in September. Additionally, the company cited heightened uncertainty in the casualty classes, driven by social inflation and litigation finance.