10-QPeriod: Q3 FY2024

BROWN & BROWN, INC. Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 28, 2024For Securities:BRO

Summary

Brown & Brown, Inc. reported strong financial results for the third quarter and first nine months of 2024, demonstrating robust revenue growth and increased profitability. Total revenues for the nine months ended September 30, 2024, rose by 12.1% to $3.62 billion, driven by a healthy 10.6% increase in core commissions and fees. Net income attributable to the Company surged by 30.1% to $783 million for the nine-month period, reflecting effective cost management and operational efficiencies. The company's strategic acquisitions continue to contribute significantly to growth, with new businesses adding substantial revenue streams. While employee compensation and benefits saw an increase, it was managed effectively as a percentage of total revenues over the nine-month period. The balance sheet remains strong, with total assets growing to $17.5 billion and equity increasing to $6.5 billion, supported by continued prudent financial management and a favorable market position. Overall, Brown & Brown exhibits a positive financial trajectory, marked by consistent growth and profitability.

Financial Highlights

51 data points
Beta

Revenue

$1.07B

Net Income

$176.00M

16.5% Net Margin

EPS (Diluted)

$0.62

Total Assets

$13.98B

Cash & Equivalents

$756.00M

Free Cash Flow

$302.20M

Financial Statements
Beta
Revenue$1.07B
Operating Expenses$826.00M
Interest Expense$47.50M
Net Income$176.00M
EPS (Basic)$0.62
EPS (Diluted)$0.62
Shares Outstanding (Basic)280.00M
Shares Outstanding (Diluted)281.00M

Key Highlights

  • 1Total revenues increased by 12.1% to $3.62 billion for the nine months ended September 30, 2024, compared to the same period in 2023.
  • 2Net income attributable to the Company increased by 30.1% to $783 million for the nine months ended September 30, 2024.
  • 3Core commissions and fees, a key revenue driver, grew by 10.6% year-over-year for the nine-month period.
  • 4The company successfully integrated recent acquisitions, which contributed significantly to revenue growth.
  • 5Employee compensation and benefits, while increasing in absolute terms, remained largely stable as a percentage of total revenues for the nine-month period.
  • 6Total assets grew to $17.5 billion and total equity increased to $6.5 billion, indicating a strong and expanding financial position.
  • 7The company maintained a strong liquidity position with $2.7 billion in cash and cash equivalents inclusive of fiduciary cash.

Frequently Asked Questions

Brown & Brown's revenue growth is primarily driven by increases in core commissions and fees, which are generated from net new and renewal business, as well as contributions from recent acquisitions. The company's focus on organic growth and strategic M&A activities continues to be a key factor.

The company demonstrated effective expense management. While employee compensation and benefits increased, it largely kept pace with revenue growth, remaining stable as a percentage of total revenues for the nine-month period. Other operating expenses also showed moderate increases relative to revenue growth, contributing to improved profitability.

The increase in cash and cash equivalents, including fiduciary cash, to $2.7 billion signifies a strong liquidity position. This provides the company with financial flexibility for ongoing operations, strategic investments, potential acquisitions, and returning capital to shareholders.

Recent acquisitions are a significant contributor to Brown & Brown's revenue growth, adding new business streams and expanding market reach. The company has successfully integrated these businesses, as evidenced by their contribution to both revenue and profitability.