10-KPeriod: FY2021

BROWN & BROWN, INC. Annual Report, Year Ended Dec 31, 2021

Filed February 23, 2022For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) reported a strong financial performance for the fiscal year ended December 31, 2021, demonstrating significant growth across its diversified insurance intermediary operations. The company experienced a substantial increase in total revenues, driven by robust performance in its Retail and National Programs segments, supported by organic growth and strategic acquisitions. Net income also saw a healthy increase, reflecting effective cost management and operational efficiencies. The company's balance sheet remains solid, with ample liquidity and capacity for future growth initiatives, including ongoing strategic acquisitions. Management highlighted its commitment to its "teammates" and its strong corporate culture as key drivers of its success and consistent performance.

Financial Highlights

26 data points
Beta

Revenue

$3.05B

Net Income

$587.10M

19.2% Net Margin

EPS (Diluted)

$2.07

Free Cash Flow

$763.80M

Financial Statements
Beta
Revenue$3.05B
Operating Expenses$2.29B
Interest Expense$65.00M
Net Income$587.10M
EPS (Basic)$2.08
EPS (Diluted)$2.07
Shares Outstanding (Basic)276.00M
Shares Outstanding (Diluted)277.40M

Key Highlights

  • 1Total revenues increased by 16.8% to $3,051.4 million in 2021 compared to $2,613.4 million in 2020.
  • 2Net income grew by 22.2% to $587.1 million in 2021, up from $480.5 million in 2020.
  • 3Organic Revenue growth was 10.4% for the full year 2021, indicating strong underlying business expansion.
  • 4The Retail segment remains the largest contributor, with total revenues increasing by 20.0% to $1,767.9 million.
  • 5The National Programs segment also showed strong growth, with total revenues up 14.9% to $701.9 million.
  • 6The company continued its acquisitive growth strategy, completing multiple acquisitions throughout the year to expand its market reach and service offerings.
  • 7Shareholders received solid returns, with diluted earnings per share increasing to $2.07 from $1.69 in the prior year, and the company repurchased $82.6 million of its stock.

Frequently Asked Questions

Brown & Brown's total revenues increased by 16.8% to $3,051.4 million in 2021, up from $2,613.4 million in 2020. This growth was driven by core commissions and fees, which increased by 17.0% to $2,946.3 million.

Acquisitions played a significant role in Brown & Brown's performance in 2021. The company completed 19 acquisitions during the year, contributing approximately $170.1 million to core commissions and fees, primarily within the Retail and National Programs segments. This acquisitive strategy is a key component of their growth.

Brown & Brown maintains a conservative balance sheet with strong liquidity. As of December 31, 2021, the company had $887.0 million in cash and cash equivalents and access to an $800.0 million revolving credit facility. The company believes its existing cash, operational cash flow, and credit facilities are sufficient to meet its liquidity needs for at least the next 12 months, supporting ongoing operations and strategic initiatives.

While total expenses increased by 15.0% to $2,288.6 million in 2021, this was largely due to growth from acquisitions and increased compensation to support revenue growth. Notably, employee compensation and benefits as a percentage of total revenues decreased from 55.0% in 2020 to 53.6% in 2021, and other operating expenses as a percentage of total revenues also decreased from 14.0% to 13.2%, indicating effective expense management relative to revenue growth.