01—Abstract
Summary
Summary of the 10-Q filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Brown & Brown, Inc. (BRO) reported strong first-quarter 2024 results, with total revenues increasing by 12.7% to $1.258 billiona, driven by a significant 11.6% rise in commissions and fees.
Net income attributable to the Company surged by 24.2% to $293 millionb, translating to a diluted EPS of $1.02, up from $0.83 in the prior year. This robust performance was fueled by organic revenue growth of 8.6% and successful integration of recent acquisitions, alongside a notable increase in profit-sharing contingent commissions. The company's diversified business segments—Retail, Programs, and Wholesale Brokerage—all contributed positively to the top-line growth.
The Retail segment saw a 10.0%c revenue increase, while the Programs segment experienced a substantial 16.9% jump, and Wholesale Brokerage reported a 15.4% rise. Management highlighted continued focus on new business, customer retention, and strategic acquisitions as key drivers of its sustained growth trajectory. Despite a slight increase in long-term debt, the company maintains a strong liquidity position and expects its existing cash, credit facilities, and operational cash flow to be sufficient for its needs.
02—Key points
Key Highlights
- Total revenues grew 12.7% to $1.258 billion for the three months ended March 31, 2024.
- Net income attributable to the Company increased by 24.2% to $293 million.
- Diluted earnings per share rose to $1.02, up from $0.83 in the prior year.
- Organic Revenue growth rate was 8.6% for the first quarter of 2024.
- Commissions and fees, the primary revenue driver, increased by 11.6% to $1.237 billion.
- All three reportable segments (Retail, Programs, Wholesale Brokerage) showed revenue growth, with the Programs segment experiencing the highest percentage increase at 16.9%.
- The company completed six acquisitions during the quarter, contributing to overall growth.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 24, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $1.12B$904.70M | +23.4% |
| Operating Expenses | $822.00M$639.70M | +28.5% |
| Interest Expense | $47.00M$18.30M | +156.8% |
| Net Income | $236.00M$220.30M | +7.1% |
| EPS (Basic) | $0.83$0.78 | +6.4% |
| EPS (Diluted) | $0.83$0.77 | +7.8% |
| Shares Outstanding (Basic) | 278.00M277.10M | +0.3% |
| Shares Outstanding (Diluted) | 279.00M278.60M | +0.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of Brown & Brown's revenue growth in Q1 2024?
Brown & Brown's revenue growth in the first quarter of 2024 was primarily driven by an 11.6% increase in commissions and fees, totaling $1.237 billion. This growth was supported by an organic revenue growth rate of 8.6%, reflecting strong net new and renewal business, alongside contributions from six acquisitions completed during the quarter. Profit-sharing contingent commissions also saw a significant increase, contributing positively to the top line.
How did the company's different segments perform in the first quarter?
All three reportable segments—Retail, Programs, and Wholesale Brokerage—demonstrated solid performance. The Retail segment's total revenues grew by 10.0%, the Programs segment saw a significant increase of 16.9%, and the Wholesale Brokerage segment reported a 15.4% rise in total revenues. This diversified growth across segments highlights the company's broad market reach and effective business strategies.
What is the company's financial position regarding debt and liquidity?
Brown & Brown maintained a strong liquidity position, with total debt increasing slightly to $3.884 billion as of March 31, 2024. The company has access to a Revolving Credit Facility of up to $600 million, with expansion options that could increase total borrowing capacity to $1.5 billion. Management believes its existing cash, investments, operational cash flow, and available credit facilities are sufficient to meet its liquidity needs for at least the next twelve months and beyond.
06—Continue