10-QPeriod: Q1 FY2024

BROWN & BROWN, INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 24, 2024For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) reported strong first-quarter 2024 results, with total revenues increasing by 12.7% to $1.258 billion, driven by a significant 11.6% rise in commissions and fees. Net income attributable to the Company surged by 24.2% to $293 million, 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% 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.

Financial Highlights

50 data points
Beta

Revenue

$1.12B

Net Income

$236.00M

21.1% Net Margin

EPS (Diluted)

$0.83

Total Assets

$13.40B

Cash & Equivalents

$563.00M

Free Cash Flow

$48.00M

Financial Statements
Beta
Revenue$1.12B
Operating Expenses$822.00M
Interest Expense$47.00M
Net Income$236.00M
EPS (Basic)$0.83
EPS (Diluted)$0.83
Shares Outstanding (Basic)278.00M
Shares Outstanding (Diluted)279.00M

Key Highlights

  • 1Total revenues grew 12.7% to $1.258 billion for the three months ended March 31, 2024.
  • 2Net income attributable to the Company increased by 24.2% to $293 million.
  • 3Diluted earnings per share rose to $1.02, up from $0.83 in the prior year.
  • 4Organic Revenue growth rate was 8.6% for the first quarter of 2024.
  • 5Commissions and fees, the primary revenue driver, increased by 11.6% to $1.237 billion.
  • 6All three reportable segments (Retail, Programs, Wholesale Brokerage) showed revenue growth, with the Programs segment experiencing the highest percentage increase at 16.9%.
  • 7The company completed six acquisitions during the quarter, contributing to overall growth.

Frequently Asked Questions

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.

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.

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.