Brown & Brown, Inc. · NYSE:BRO
Brown & Brown — Q3 2024 Earnings Presentation
18 slides from Brown & Brown's earnings presentation, Oct 29, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results October 28, 2024
Slide 2: Information Regarding Forward-Looking Statements
Information Regarding Forward-Looking Statements This presentation and the statements made during our earnings call may contain certain statements relating to future results which are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Slide 3: Information Regarding Non-GAAP Measures
Information Regarding Non-GAAP Measures This presentation contains references to "non-GAAP financial measures" as defined in SEC Regulation G, consisting of Organic Revenue, EBITDAC, EBITDAC Margin, EBITDAC - Adjusted, EBITDAC Margin - Adjusted, Income Before Income Taxes - Adjusted, Income Before I
Slide 4: Information Regarding Non-GAAP Measures - Continued
Information Regarding Non-GAAP Measures - Continued Non-GAAP Revenue Measures • Organic Revenue is our core commissions and fees less: (i) the core commissions and fees earned for the first 12 months by newly acquired operations; (ii) divested business (core commissions and fees generated from offic
Slide 5: Third Quarter 2024 Results
Third Quarter 2024 Results (Unaudited) $1.2B Total revenue growth of 11.0% 9.5% 34.9% $0.81 $0.91 $7.5M Organic EBITDAC Margin - Diluted Net Income Diluted Net Income Annual revenue of Revenue Adjusted up 30bps Per Share Per Share - Adjusted four acquisitions growth increased 30.6% increased 12.3% S
Slide 6: Market & Business Overview – 3Q24
Market & Business Overview – 3Q24 Economy in 3Q24 remained relatively consistent with 1H24. Seeing some cautiousness. Consumers continue to spend. Businesses are hiring, investing and growing, but with continued moderation Rates for the admitted markets moderated slightly as compared to prior quarte
Slide 7: Segment Organic Revenue Growth 3Q24
Segment Organic Revenue Growth 3Q24 (Unaudited) 3.9% 22.8% 8.4% Retail Programs Wholesale Brokerage See important disclosures regarding non-GAAP measures on pages 2-3 and non-GAAP reconciliations on pages 12-16. © 2024 Brown & Brown, Inc. All rights reserved. 6
Slide 8: Consolidated Financial Highlights - Adjusted
Consolidated Financial Highlights - Adjusted ($ Millions, Except Per Share Data; Adjusted & Unaudited) Third Quarter 2024 2023 $ Change % Change Total revenues $1,186 $1,068 $118 11.0% Organic Revenue $1,093 $998 $95 9.5% Income Before Income Taxes - Adjusted $353 $312 $41 13.1% Income Before Income
Slide 9: Retail Segment
Retail Segment ($ Millions; Unaudited) Third Quarter 2024 2023 $ Change % Change Total revenues $641 $602 $39 6.5% Organic Revenue $615 $592 $23 3.9% EBITDAC - Adjusted $170 $171 ($1) (0.6%) EBITDAC Margin - Adjusted 26.5% 28.4% (190bps) Business & Market Commentary Total revenues grew due to acquis
Slide 10: Programs Segment
Programs Segment ($ Millions; Unaudited) Third Quarter 2024 2023 $ Change % Change Total revenues $353 $305 $48 15.7% Organic Revenue $323 $263 $60 22.8% EBITDAC - Adjusted $170 $136 $34 25.0% EBITDAC Margin - Adjusted 48.2% 44.6% 360bps Business & Market Commentary Total revenues increased Organic
Slide 11: Wholesale Brokerage Segment
Wholesale Brokerage Segment ($ Millions; Unaudited) Third Quarter 2024 2023 $ Change % Change Total revenues $171 $150 $21 14.0% Organic Revenue $155 $143 $12 8.4% EBITDAC - Adjusted $66 $56 $10 17.9% EBITDAC Margin - Adjusted 38.6% 37.3% 130bps Business & Market Commentary Total revenues increased
Slide 12: Closing Comments
Closing Comments All business leaders are monitoring the outcome of US presidential election Anticipate rate changes for most lines in 4th quarter to be relatively consistent with the 3rd quarter Industry digesting impact of property losses from Hurricane Milton. Could see rates flat to down 10% for
Slide 13: Reconciliation of Non-GAAP Measures
T H I R D Q U A R T E R 2 0 2 4 R E S U LT S Reconciliation of Non-GAAP Measures © 2024 Brown & Brown, Inc. All rights reserved. 12
Slide 14: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Third Quarter 2024 Change in Estimated (Gain)/ As Acquisition Loss on Amortization Adjusted Reported Earn-Out Disposal Payables Total revenues $1,186 - - - $1,186 Income before income taxes $317 ($8) ($1) $45 $353 Income
Slide 15: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Third Quarter 2023 Change in Estimated (Gain)/ Acquisition/I As Acquisition Loss on ntegration Amortization Adjusted Reported Earn-Out Disposal Costs Payables Total revenues $1,068 - - - - $1,068 Income before income taxe
Slide 16: Reconciliation of Income Before Income Taxes to EBITDAC and EBITDAC - Adjusted
Reconciliation of Income Before Income Taxes to EBITDAC and EBITDAC - Adjusted and Income Before Income Taxes Margin to EBITDAC Margin and EBITDAC Margin - Adjusted ($ Millions; Unaudited) Third Quarter Wholesale Retail Programs Other Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Slide 17: Reconciliation of Commissions and Fees to Organic Revenue
Reconciliation of Commissions and Fees to Organic Revenue ($ Millions; Unaudited) Third Quarter Wholesale Retail(1) Programs Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 Commissions and fees $639 $599 $347 $301 $169 $149 $1,155 $1,049 Total change 40 46 20 106 Total growth % 6.7% 15.3% 13
Slide 18: For additional information: Andrew Watts
For additional information: Andrew Watts Executive Vice President & Chief Financial Officer (386) 239-5770 | awatts@bbins.com The Cheetah: Since our beginning, we have known that doing what is best for our customers requires constant persistence and vision. The cheetah, which represents vision, swif