10-KPeriod: FY2024

BROWN & BROWN, INC. Annual Report, Year Ended Dec 31, 2024

Filed February 13, 2025For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) demonstrated robust financial performance in 2024, with total revenues reaching $4.8 billion, a 12.9% increase year-over-year. This growth was primarily driven by strong organic revenue growth of 10.4% and strategic acquisitions, contributing to a consolidated increase in core commissions and fees of 11.6% to $4.5 billion. The company's diversified business segments—Retail, Programs, and Wholesale Brokerage—all showed positive revenue trends, with the Programs segment exhibiting the highest organic revenue growth rate at 22.4%. Net income attributable to the Company grew by 14.0% to $993 million, reflecting effective management of expenses and a solid income before income taxes margin of 27.1%. Acquisitions remain a key component of Brown & Brown's growth strategy, with 32 acquisitions completed in 2024, totaling $890 million in net cash paid. This aggressive acquisition approach, combined with strong organic growth and operational efficiencies, positions the company for continued expansion. The company also maintained a solid liquidity profile, with $675 million in cash and cash equivalents and significant capacity under its revolving credit facility. Management remains focused on delivering value to shareholders through a combination of profitable growth and strategic capital deployment.

Financial Highlights

25 data points
Beta

Revenue

$4.80B

Net Income

$993.00M

20.7% Net Margin

EPS (Diluted)

$3.46

Free Cash Flow

$1.09B

Financial Statements
Beta
Revenue$4.80B
Net Income$993.00M
EPS (Basic)$3.48
EPS (Diluted)$3.46
Shares Outstanding (Basic)282.00M
Shares Outstanding (Diluted)284.00M

Key Highlights

  • 1Total revenues increased by 12.9% to $4.8 billion for the year ended December 31, 2024.
  • 2Organic Revenue growth rate was 10.4%, indicating strong underlying business expansion.
  • 3Net income attributable to the Company grew by 14.0% to $993 million.
  • 4The company completed 32 acquisitions in 2024, investing $890 million net of cash, highlighting a continued aggressive M&A strategy.
  • 5The Programs segment saw the highest organic revenue growth at 22.4%.
  • 6Profit-sharing contingent commissions increased by 27.7% to $166 million, driven by improved underwriting results and business growth.
  • 7EBITDAC - Adjusted increased by 17.0% to $1.7 billion, with an adjusted margin of 35.2%.

Frequently Asked Questions

Brown & Brown operates as a diversified insurance agency, wholesale brokerage, insurance programs, and service organization. Their core business involves marketing and selling insurance products and services, primarily in property, casualty, and employee benefits. They largely act as agents or brokers, earning commissions from insurance companies and fees from customers for their services, rather than assuming significant underwriting risks themselves, with limited exceptions.

In 2024, Brown & Brown achieved robust financial results. Total revenues increased by 12.9% to $4.8 billion. This growth was fueled by a 10.4% organic revenue growth rate and 32 strategic acquisitions completed during the year. Net income attributable to the Company rose by 14.0% to $993 million, demonstrating strong operational performance and effective cost management.

Brown & Brown's growth strategy is two-pronged: organic growth and strategic acquisitions. They focus on driving new business, customer retention, and expanding into new markets. The company actively pursues acquisitions of insurance intermediaries and related businesses, having completed 32 acquisitions in 2024 for $890 million. This dual approach has historically resulted in consistent revenue and earnings growth.

Brown & Brown maintains a conservative balance sheet and strong liquidity. As of December 31, 2024, they had $675 million in cash and cash equivalents and access to approximately $550 million in borrowing capacity under their revolving credit facility, with additional expansion options. The company manages its debt through a combination of operating cash flows, disciplined use of debt, and equity issuance for acquisitions, ensuring sufficient funds to meet its liquidity needs and capital requirements.