Summary
Brown & Brown, Inc. (BRO) filed an 8-K on March 1, 2024, primarily to announce a significant reorganization of its business segments, effective for fiscal year 2024. This change consolidates the company's reporting structure from four to three segments: Retail, Programs, and Wholesale Brokerage. The Services segment has been eliminated, with its operations integrated into the Retail segment due to closer alignment of services, and divested businesses from Services have been combined with the Programs segment. This reorganization impacts how historical segment data is presented but does not alter previously reported consolidated financial statements.
Key Highlights
- 1Effective January 1, 2024, Brown & Brown has reorganized its business segments from four to three: Retail, Programs, and Wholesale Brokerage.
- 2The previous 'Services' segment has been eliminated.
- 3Operations from the former 'Services' segment have been integrated into the 'Retail' segment.
- 4Divested businesses previously within the 'Services' segment have been combined with the 'Programs' segment.
- 5This segment reorganization is primarily for reporting purposes and does not affect previously issued consolidated financial statements (income, balance sheet, cash flows, etc.).
- 6The company is providing recast historical business segment information for fiscal years 2019-2023 and quarterly data for 2023 to reflect the new structure via Exhibit 99.1.
- 7This filing serves to provide supplemental, unaudited historical segment information under the new structure.
Frequently Asked Questions
The main purpose of this 8-K filing is to announce and explain a reorganization of Brown & Brown's business segments, effective for fiscal year 2024. It also provides recast historical segment data to reflect this new structure.
Brown & Brown has reduced its reporting segments from four to three. The 'Services' segment has been eliminated. Its operations have been integrated into the 'Retail' segment, and divested businesses from 'Services' have been combined with the 'Programs' segment. The new segments are Retail, Programs, and Wholesale Brokerage.
No, the segment reorganization itself does not impact Brown & Brown's previously reported consolidated financial statements, including their statements of income, balance sheets, or cash flows. It is a change in how the company internally organizes and reports its business segments.
Exhibit 99.1, furnished with this 8-K, provides unaudited historical business segment information for each quarter of fiscal year 2023 and full years from 2019 to 2023, recast to reflect the new segment structure.