10-KPeriod: FY2023

BROWN & BROWN, INC. Annual Report, Year Ended Dec 31, 2023

Filed February 22, 2024For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) demonstrated robust financial performance in 2023, driven by strong organic revenue growth and strategic acquisitions. The company reported a significant increase in total revenues to $4.26 billion, up 19.1% from the prior year, with core commissions and fees growing by 17.1% to $4.07 billion. This growth was fueled by a solid organic revenue increase of 10.2%, indicating strong underlying business momentum across its segments. The company's diverse business segments, including Retail, National Programs, and Wholesale Brokerage, all contributed positively to revenue growth. The Services segment saw a slight decline in revenue, largely due to the sale of certain businesses in Q4 2023. Brown & Brown also successfully integrated numerous acquisitions, contributing significantly to its overall expansion. The company maintained healthy profitability, with income before income taxes increasing by 30.8% to $1.15 billion, and an improved income before income taxes margin of 26.9%. The balance sheet remains strong, with total assets growing to $14.88 billion, supported by effective capital management and a robust liquidity position. Brown & Brown continues to focus on its core strategies of strategic acquisitions and organic growth, emphasizing its people-centric culture and commitment to client service. The company's consistent revenue growth over decades, coupled with strategic capital allocation and a clear growth path, positions it favorably for continued success in the insurance intermediary market.

Financial Highlights

27 data points
Beta

Revenue

$4.26B

Net Income

$871.00M

20.5% Net Margin

EPS (Diluted)

$3.05

Free Cash Flow

$941.00M

Financial Statements
Beta
Revenue$4.26B
Operating Expenses$3.11B
Interest Expense$190.00M
Net Income$871.00M
EPS (Basic)$3.07
EPS (Diluted)$3.05
Shares Outstanding (Basic)280.00M
Shares Outstanding (Diluted)281.00M

Key Highlights

  • 1Total revenues increased by 19.1% to $4.26 billion in 2023.
  • 2Organic revenue growth was a strong 10.2%, demonstrating healthy underlying business performance.
  • 3Income before income taxes grew by 30.8% to $1.15 billion, with an improved margin of 26.9%.
  • 4The company completed 33 acquisitions in 2023, further expanding its market reach and capabilities.
  • 5Total assets grew by 6.5% to $14.88 billion, reflecting continued expansion and asset accumulation.
  • 6Brown & Brown maintained a solid liquidity position with $700.3 million in cash and cash equivalents at year-end.
  • 7Employee compensation and benefits increased by 20.3%, reflecting investments in talent to support growth.

Frequently Asked Questions

Brown & Brown's primary sources of revenue are commissions paid by insurance companies and, to a lesser extent, fees paid directly by customers for services.

Acquisitions were a significant driver of growth in 2023, contributing $285.0 million to core commissions and fees. The company completed 33 acquisitions during the year, integrating them into its operations to expand its market presence and service offerings.

Brown & Brown's growth strategy is focused on both organic growth through net new business and renewals, and strategic acquisitions of high-quality insurance intermediaries and service organizations. They emphasize a strong sales and service culture and disciplined capital allocation.

Brown & Brown manages its debt through a combination of its revolving credit facility and term loan agreements. The company aims to maintain a conservative balance sheet and has access to significant borrowing capacity, with total debt of $3.80 billion at the end of 2023.