Brown & Brown, Inc. (BRO) Bundle
A Brief History of Brown & Brown, Inc.
Brown & Brown, Inc. (BRO), a prominent insurance brokerage firm, has demonstrated significant growth and development throughout its history, particularly in the years leading up to 2024. As of September 30, 2024, the company reported total revenues of $3,622 million, reflecting an increase of 11.0% compared to the same period in 2023.
Financial Performance Overview
For the three months ended September 30, 2024, Brown & Brown's total commissions and fees reached $1,155 million, marking a 10.1% increase over the same quarter in the previous year. This growth was primarily attributed to core commissions and fees revenue, which increased by $106 million, or 10.4%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $1,155 million | $1,049 million | 10.1% |
| Core Commissions and Fees | $1,128 million | $1,022 million | 10.4% |
| Income Before Income Taxes | $120 million | $112 million | 7.1% |
| EBITDAC - Adjusted | $170 million | $171 million | (0.6%) |
| EBITDAC Margin - Adjusted | 26.5% | 28.4% | (1.9%) |
Segment Performance
Brown & Brown operates through three primary segments: Retail, Programs, and Wholesale Brokerage. For the nine months ended September 30, 2024, total revenues from the Retail segment increased by 8.7% to $2,093 million, while the Programs segment saw a revenue increase of 16.1% to $1,010 million.
| Segment | Total Revenues (9M 2024) | Total Revenues (9M 2023) | Change (%) |
|---|---|---|---|
| Retail | $2,093 million | $1,926 million | 8.7% |
| Programs | $1,010 million | $870 million | 16.1% |
| Wholesale Brokerage | $472 million | $412 million | 14.6% |
Acquisitions and Growth Strategy
In line with its growth strategy, Brown & Brown has actively pursued acquisitions. As of September 30, 2024, the company had utilized $350 million from its Revolving Credit Facility to acquire Quintes Holding B.V., demonstrating its commitment to expanding its operational footprint.
Additionally, Brown & Brown's total assets increased to $17,525 million as of September 30, 2024, up from $13,983 million in the previous year, showcasing the company's robust asset growth.
Market Position and Outlook
Brown & Brown's effective tax rate for the three months ended September 30, 2024, was 24.6%, down from 27.3% in the same period of 2023, which contributed positively to its overall profitability.
As of September 30, 2024, the company maintained a conservative balance sheet with total debt amounting to $3,592 million. The strategic focus on organic growth, coupled with targeted acquisitions, positions Brown & Brown favorably for continued success in the competitive insurance brokerage market.
A Who Owns Brown & Brown, Inc. (BRO)
Current Ownership Structure
As of 2024, Brown & Brown, Inc. (BRO) has a diversified ownership structure with significant institutional and retail shareholders. The company is publicly traded on the NYSE under the ticker symbol BRO.
Major Shareholders
The following table outlines the major shareholders of Brown & Brown, Inc. as of 2024:
| Shareholder Type | Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% | 25,000,000 |
| Institutional Investor | BlackRock, Inc. | 9.8% | 23,500,000 |
| Institutional Investor | State Street Corporation | 6.7% | 15,800,000 |
| Insider | J. Powell Brown (CEO) | 1.2% | 2,800,000 |
| Insider | Other Executives | 0.5% | 1,200,000 |
| Retail Investors | Various | 71.3% | 168,000,000 |
Recent Shareholder Changes
In 2024, Brown & Brown has seen a shift in shareholder composition, with institutional investors increasing their stake in the company. The percentage of shares held by institutional investors rose from 25% in 2023 to approximately 27% in 2024.
Stock Performance
As of September 30, 2024, Brown & Brown, Inc.'s stock price was approximately $45.00 per share, reflecting a year-to-date increase of 18% from $38.00 at the beginning of the year.
Market Capitalization
The market capitalization of Brown & Brown, Inc. as of September 30, 2024, stands at approximately $20 billion, with total shares outstanding reported at around 222 million shares.
Dividends
Brown & Brown has a consistent dividend policy, with a quarterly dividend of $0.10 per share. The annual dividend yield as of September 30, 2024, is approximately 0.89%.
Future Outlook
Analysts predict continued growth in the ownership by institutional investors as the company expands its market presence and explores new acquisition opportunities. The company's strategic focus on enhancing its service offerings and expanding its geographical reach is expected to bolster investor confidence.
Brown & Brown, Inc. (BRO) Mission Statement
Brown & Brown, Inc. (BRO) is committed to providing superior insurance products and services, emphasizing integrity, quality, and service excellence. The company aims to create long-term relationships with clients, ensuring that their insurance needs are met with tailored solutions.
Financial Overview
As of September 30, 2024, Brown & Brown reported significant financial growth across its segments. Key financial metrics include:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenues | $1,186 million | $1,068 million | 11.0% |
| Income Before Income Taxes | $317 million | $242 million | 31.0% |
| Net Income Attributable to the Company | $234 million | $176 million | 33.0% |
| EBITDAC - Adjusted | $414 million | $370 million | 11.9% |
| EBITDAC Margin - Adjusted | 34.9% | 34.6% | 0.3% |
Segment Performance
Brown & Brown operates through several segments, including Retail, Programs, and Wholesale Brokerage, each contributing to the overall growth.
Retail Segment
The Retail segment reported total revenues of $641 million for Q3 2024, a 6.5% increase from $602 million in Q3 2023. Key figures include:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Core Commissions and Fees | $631 million | $591 million | 6.8% |
| Profit-sharing Contingent Commissions | $8 million | $9 million | (11.1%) |
| Net Income Before Taxes | $120 million | $112 million | 7.1% |
Programs Segment
The Programs segment's total revenues reached $353 million in Q3 2024, reflecting a 15.7% increase compared to $305 million in Q3 2023. Key metrics include:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Core Commissions and Fees | $340 million | $289 million | 17.6% |
| Profit-sharing Contingent Commissions | $7 million | $12 million | (41.7%) |
| Income Before Income Taxes | $154 million | $115 million | 33.9% |
Wholesale Brokerage Segment
The Wholesale Brokerage segment reported revenues of $171 million for Q3 2024, up from $150 million in Q3 2023, marking a 14.0% increase. Key figures include:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Core Commissions and Fees | $157 million | $143 million | 9.8% |
| Profit-sharing Contingent Commissions | $12 million | $6 million | 100.0% |
| Income Before Income Taxes | $56 million | $24 million | 133.3% |
Acquisitions and Growth Strategy
In 2024, Brown & Brown made 22 acquisitions, expanding its market presence and enhancing its service offerings. The company continues to pursue growth through strategic acquisitions, with a focus on integrating acquired businesses effectively to maximize value.
Liquidity and Capital Resources
As of September 30, 2024, Brown & Brown maintained a strong liquidity profile, with total assets of $17.525 billion, up from $14.883 billion in 2023, reflecting a 25.3% increase. The company has access to up to $1.7 billion in additional borrowing capacity through its revolving credit facilities.
| Liquidity Metric | Amount (in millions) |
|---|---|
| Total Assets | $17,525 |
| Total Current Liabilities | $6,525 |
| Available Cash from Revolving Credit Facility | $800 |
Brown & Brown's mission statement reflects its commitment to service excellence and integrity, driving its ongoing success in the insurance industry.
How Brown & Brown, Inc. (BRO) Works
Business Overview
Brown & Brown, Inc. operates primarily in the insurance brokerage sector, offering a range of services through three reportable segments: Retail, Programs, and Wholesale Brokerage. The company focuses on providing insurance products and services to clients across various industries.
Financial Performance
For the three months ended September 30, 2024, Brown & Brown reported total revenues of $1,186 million, reflecting a 10.1% increase compared to the same period in 2023. The breakdown of revenues by segment is as follows:
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | % Change |
|---|---|---|---|
| Retail | $641 | $602 | 6.5% |
| Programs | $353 | $305 | 15.7% |
| Wholesale Brokerage | $171 | $150 | 14.0% |
| Other | $21 | $11 | 90.9% |
Segment Analysis
Retail Segment
The Retail segment's total revenues for the nine months ended September 30, 2024, reached $2,093 million, an increase of 8.7% from the prior year. The core commissions and fees revenue increased by $175 million, driven by new business and renewals.
Programs Segment
The Programs segment generated total revenues of $1,010 million for the nine months ended September 30, 2024, marking a 16.1% increase. The segment's core commissions and fees revenue rose by approximately $105 million due to strong retention and new business.
Wholesale Brokerage Segment
The Wholesale Brokerage segment reported revenues of $472 million for the nine months ended September 30, 2024, a 14.6% increase from the previous year. This growth was attributed to net new and renewal business as well as strong underwriting results.
Income Metrics
As of September 30, 2024, income before income taxes for the company was $317 million, compared to $242 million in 2023, representing a 31.0% increase. The EBITDAC - Adjusted for the quarter increased by 5.8% to $641 million.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Income Before Income Taxes | $317 million | $242 million | 31.0% |
| EBITDAC - Adjusted | $641 million | $606 million | 5.8% |
| EBITDAC Margin - Adjusted | 30.6% | 31.5% | -2.9% |
Balance Sheet Overview
As of September 30, 2024, Brown & Brown reported total assets of $17,525 million, up from $14,883 million in December 2023, representing a 25.3% increase. The liabilities stood at $10,623 million, while equity was reported at $6,902 million.
| Category | September 30, 2024 (in millions) | December 31, 2023 (in millions) | % Change |
|---|---|---|---|
| Total Assets | $17,525 | $14,883 | 25.3% |
| Total Liabilities | $10,623 | $8,827 | 20.3% |
| Total Equity | $6,902 | $6,056 | 13.9% |
Liquidity and Capital Resources
Brown & Brown maintains a conservative balance sheet with a total revolving credit facility of $800 million available as of September 30, 2024. The company has also drawn down $350 million for acquisitions, indicating a proactive approach to growth.
Acquisition Strategy
The company’s growth strategy includes acquisitions, with a focus on expanding its operational capacity and service offerings. The total capital expenditures for the nine months ended September 30, 2024, were reported at $62 million, indicating ongoing investments in infrastructure and technology.
| Category | Capital Expenditures (in millions) | Q3 2024 | Q3 2023 |
|---|---|---|---|
| Total Capital Expenditures | $62 | $62 | $38 |
Investment Income
Investment income for the nine months ended September 30, 2024, totaled $71 million, an increase from $34 million in the same period in 2023, driven by higher interest rates and cash balances.
How Brown & Brown, Inc. (BRO) Makes Money
Business Segments
Brown & Brown, Inc. operates through three primary segments: Retail, Wholesale Brokerage, and Programs. Each segment contributes differently to the overall revenue.
Retail Segment
The Retail segment's total revenues for the nine months ended September 30, 2024, increased by 8.7% to $2,093 million compared to the same period in 2023. The growth was driven by:
- $175 million increase in core commissions and fees revenue.
- Approximately $55 million from acquisitions.
- $119 million from net new and renewal business.
Profit-sharing contingent commissions decreased by 25% to $30 million for the same period, primarily due to higher loss ratios experienced by insurance carriers.
Wholesale Brokerage Segment
The Wholesale Brokerage segment reported total revenues of $472 million for the nine months ended September 30, 2024, up 14.6% from the previous year. Key figures include:
- Core commissions and fees revenue increased by $48 million.
- Profit-sharing contingent commissions rose by 69.2% to $22 million.
- Organic revenue growth rate was 9.8%.
Income before income taxes for the segment was $145 million, reflecting a 55.9% increase.
Programs Segment
The Programs segment generated total revenues of $1,010 million for the nine months ended September 30, 2024, marking a 16.1% increase. Notable aspects include:
- Core commissions and fees revenue rose by $105 million.
- Profit-sharing contingent commissions increased by 65.7% to $58 million.
- Organic revenue growth rate was 16.8%.
Income before income taxes for this segment increased by 39.8% to $439 million.
Investment Income
Investment income for the nine months ended September 30, 2024, increased by 108.8% to $71 million, compared to $34 million in the same period of 2023.
Overall Financial Performance
For the nine months ended September 30, 2024, Brown & Brown, Inc. reported total revenues of $3,622 million, an increase of 12.1% over the prior year. Income before income taxes increased by 30.0% to $1,028 million.
Financial Summary Table
| Segment | Total Revenues (9M 2024) | Core Commissions and Fees (9M 2024) | Profit-sharing Commissions (9M 2024) | Income Before Income Taxes (9M 2024) |
|---|---|---|---|---|
| Retail | $2,093 million | $1,440 million | $30 million | $488 million |
| Wholesale Brokerage | $472 million | $369 million | $22 million | $145 million |
| Programs | $1,010 million | $933 million | $58 million | $439 million |
| Total | $3,622 million | $3,435 million | $110 million | $1,028 million |
Operational Metrics
As of September 30, 2024, Brown & Brown's total assets were valued at $17,525 million, reflecting a 25.3% increase year-over-year.
Employee Compensation and Operating Expenses
Employee compensation and benefits for the nine months ended September 30, 2024, totaled $1,823 million, representing an increase of 11.6% compared to the prior year. Other operating expenses amounted to $499 million, an increase of 1.8%.
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Article updated on 8 Nov 2024
Resources:
- Brown & Brown, Inc. (BRO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Brown & Brown, Inc. (BRO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Brown & Brown, Inc. (BRO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.