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BROWN & BROWN, INC. 8-K Report, Financial Results (Oct 28, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 28, 2024
Period End
October 28, 2024
Security
BRO
In the record · 2016–202610-K1210-Q388-K126

BRO filed 12 annual reports (10-K), 38 quarterly reports (10-Q) and 126 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’17Jun ’17
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Material agreement8-K · Apr ’22Apr ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed October 28, 2024. Cited figures are marked; the original filing is the authoritative source.

Brown & Brown, Inc. (NYSE: BRO) reported unaudited third quarter 2024 results on October 28, 2024, showing strong top-line and earnings growth.

GAAP total revenues rose 11.0% to $1.186 billiona, commissions and fees grew 10.1%, and Organic Revenue increased 9.5%. Income before income taxes climbed 31.0% to $317 million, with the pre-tax margin expanding to 26.7% from 22.7%. Net income attributable to the company rose 33.0% to $234 million, and diluted EPS reached $0.81, up 30.6%.

Diluted EPS - Adjusted rose 12.3% to $0.91b. EBITDAC - Adjusted was $414 million, up 11.9%, with a margin of 34.9%. For the nine months ended September 30, 2024, total revenues grew 12.1% to $3.6 billion, Organic Revenue grew 9.4%, and diluted EPS rose 29.4% to $2.73, while Diluted EPS - Adjusted rose 16.4% to $2.98.

Pre-tax margin expanded to 28.4% from 24.5%. Notably, the balance sheet shows a sharp increase in reinsurance recoverables ($2.04 billionc vs. $125 million at year-end 2023) and a matching jump in losses and loss adjustment reserves ($2.04 billion vs. $131 million), reflecting the consolidation of captive insurance-related reinsurance activity. Investors should note that the company also changed its non-GAAP definitions effective January 1, 2024, removing the foreign currency translation exclusion and excluding amortization from Adjusted EPS, which makes the Adjusted EPS growth rate not directly comparable to prior-year reported figures without recasting.

The filing is a Form 8-K furnishing the earnings press release under Item 2.02. The information is furnished rather than filed, so it is not subject to Section 18 liability.

A conference call was scheduled for October 29, 2024 at 8:00 AM EDT. The press release also includes a forward-looking statements caveat, notably that the final third quarter numbers could differ from the preliminary unaudited figures presented.

02—Key points

Key Highlights

  1. GAAP total revenues of $1.186 billion in Q3 2024, up 11.0% year over year; commissions and fees up 10.1% to $1.155 billion.
  2. Organic Revenue grew 9.5% in Q3 2024 ($1.093 billion) and 9.4% for the nine months, indicating solid underlying growth excluding acquisitions, dispositions, and currency.
  3. Net income attributable to the company rose 33.0% to $234 million in Q3; diluted EPS of $0.81 was up 30.6%.
  4. Diluted EPS - Adjusted of $0.91 in Q3, up 12.3%, and $2.98 for nine months, up 16.4%, after excluding amortization and earn-out payable changes under the revised 2024 definition.
  5. Pre-tax margin expanded to 26.7% in Q3 from 22.7%, and EBITDAC Margin - Adjusted improved to 34.9% from 34.6%.
  6. Reinsurance recoverables and loss reserves both jumped to about $2.04 billion from roughly $125-131 million at December 31, 2023, a significant balance sheet change that warrants follow-up in the full 10-Q.
  7. Cash and cash equivalents rose to $957 million, and long-term debt was reduced by $700 million in payments during the nine months, partly offset by $599 million in new borrowings.

03—Questions

Frequently Asked Questions

  1. How strong was Brown & Brown's Q3 2024 growth?

    Growth was strong across the board. Total GAAP revenues rose 11.0% to $1.186 billion, Organic Revenue grew 9.5%, and net income attributable to the company rose 33.0% to $234 million. Much of the earnings growth outpaced revenue growth, reflecting margin expansion.

  2. Why did the non-GAAP measures change in 2024?

    Effective January 1, 2024, the company stopped excluding foreign currency translation from its adjusted earnings and EBITDAC measures, arguing that translation effects largely offset across revenue and expenses. It also began excluding amortization of intangibles from Diluted EPS - Adjusted. Prior periods were recast, but investors comparing to older reports should be cautious.

  3. What explains the large increase in reinsurance recoverables and loss reserves?

    The balance sheet shows reinsurance recoverables of $2.04 billion at September 30, 2024, versus $125 million at year-end 2023, with losses and loss adjustment reserves rising in parallel to $2.04 billion from $131 million. The filing does not explain the driver in this press release, so the 10-Q and earnings call should be reviewed for details on the captive insurance facilities or other arrangements behind this change.

  4. Are these results final?

    No. The press release states that the results are unaudited and that the company may determine, as it finalizes third-quarter results, that the numbers differ from the preliminary figures presented. Investors should check the subsequent Form 10-Q for final figures.

  5. When and how can investors access more detail?

    Management held a conference call on Tuesday, October 29, 2024 at 8:00 AM EDT, with a slide presentation. The webcast and slides are available in the Investor Relations section of the company's website at bbinsurance.com.

04—Continue

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