The Baldwin Insurance Group, Inc. · NASDAQ:BWIN
The Baldwin Insurance — BRP Group — Investor Presentation (February 2021)
26 slides from The Baldwin Insurance's investor presentation, Feb 8, 2021
Slide 1: Investor Presentation February 2021
February 2021 INVESTOR PRESENTATION Exhibit 99.1
Slide 2: Disclaimer
DISCLAIMER This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification un
Slide 3: Business Update
BUSINESS UPDATE BRP
Slide 4: BRP has delivered strong results since the IPO in October 2019
BRP HAS DELIVERED STRONG RESULTS SINCE THE IPO IN OCTOBER 2019 4 Metric At IPO Since IPO Highlights Pro Forma LTM Revenue $141 million ~$425 million(1) (9/30 LTM + 4Q’20 Partnerships) ✓ Represents 201% increase ✓ Supported by robust organic growth and strategic partnership activity Organic Growth 10
Slide 5: FY 2020 Partnerships
FY 2020 PARTNERSHIPS 5 (1) Equity portion of consideration for 2020 Partnerships (excluding the Burnham, TBM and Westward Partnerships) based on the fair value of the Company's equity consideration paid as of the closing date of each such Partnerships. Q4 figure includes equity portion of considerat
Slide 6: BRP's growth in perspective
BRP’S GROWTH IN PERSPECTIVE 6 Organic Growth 15% 41% 29% 69% 1% 3% 4% 1% 1% Market Cap(2) $2.9bn - $5.3bn $8.1bn $49bn $23bn $13bn $57bn $27bn PF LTM Revenue ~$425mm(3) ~$50mm $106mm $97mm $11.0bn $6.7bn $2.6bn $17.2bn $9.3bn 69% 41% 29% 69% 9% 3% 4%(0%) (3%) YTD 2020 Revenue Growth (as of 9/30/20)(
Slide 7: Leveraging powerful combination of technology and sheltered distribution
LEVERAGING POWERFUL COMBINATION OF TECHNOLOGY AND SHELTERED DISTRIBUTION 7 Industry Incumbents “InsureTech” Go-To-Market Strategy “Insurance-as- a-Service” Direct to consumer and/or Agency distribution Direct to consumer Client Sheltered Distribution Ecosystems Consumer Consumer Customer Acquisition
Slide 8: Positioned for an evolving insurance distribution landscape over the next 20 years
POSITIONED FOR AN EVOLVING INSURANCE DISTRIBUTION LANDSCAPE OVER THE NEXT 20 YEARS 8 VIDEO DISTRIBUTION Vertical integration via self-manufactured product / content Technology affords significantly more efficient access to clients Clients accessed via legacy / brick & mortar channels INSURANCE DISTR
Slide 9: Product market TAM and current BRP ecosystem highlights
Product Market TAM Current BRP Ecosystem Highlights Renters 44 Million Rental Units(1) (across the U.S.) 15 Million Rental Units(5) (within BRP property mgmt. software provider relationships) ✓ BRP renters solution “turned on” in over 7 million units ✓ Penetration of those units is ~7% Private Flood
Slide 10: Leveraging our technology 'Insurance as a Service' platform
HO4 (Renters insurance) Commercial Property Insurance Captive Programs Master Policy Compliance / Tracking Ancillary Tenant Solutions 10 LEVERAGING OUR TECHNOLOGY ‘INSURANCE AS A SERVICE’ PLATFORM TO DELIVER HOLISTIC SOLUTION SET INTO SHELTERED DISTRIBUTION CHANNEL ECOSYSTEM Covers damage to unit an
Slide 11: BRP Overview
BRP OVERVIEW BRP
Slide 12: BRP approaches the world fundamentally differently than most
BRP APPROACHES THE WORLD FUNDAMENTALLY DIFFERENTLY THAN MOST ... Permanent capital, sustainable approach to doing business Invest in resources to drive organic growth Build industry-leading technology Focus on partnering with the highest quality firms 1 2 3 4 Building a forever business 12
Slide 13: That approach generates substantial outperformance over time
$35 $41 $47 $25 $44 $78 Year 0 Year 5 Year 10 Company A Company B ... AND THAT APPROACH GENERATES SUBSTANTIAL OUTPERFORMANCE OVER TIME By investing in the business instead of harvesting margin, BRP is able to create more value and more cash flow over the long-term EBITDA Comparison ($mm) Assumes two
Slide 14: Proven flywheel to generate sustainable double digit organic growth
14 Element circle 6 Continue to refine tailored client engagement model Build on reputation as a “destination” employer Expand “Insurance-as-a- Service” offering to broader suite of sheltered distribution ecosystems Vertical integration via MGA-enabled products Further enhance an already favorable g
Slide 15: BRP is a rapidly growing insurance distribution firm
500+ 1,500+ (and growing) 160+ 400+ 40+ / 4 50+ / 13 400,000+ 500,000+ 6/30/19: $141mm 9/30/20: ~$425mm BRP IS A RAPIDLY GROWING INSURANCE DISTRIBUTION FIRM Holistic and tailored approach to risk management, insurance and employee benefits Organic growth driven by tailored client engagement model an
Slide 16: Diverse, full service expertise and tech enabled operating groups
Operating Group (9/30/20 LTM Revenue) Middle Market 41% Note: Totals may not equal due to rounding; (1) Year-to-date growth calculated as revenue for the nine months ended 9/30/20 compared to revenue for the nine months ended 9/30/19 MainStreet 15% Medicare 8% 37% Specialty DIVERSE, FULL SERVICE EXP
Slide 17: Executing on a geographic growth and industry expansion approach
EXECUTING ON A GEOGRAPHIC GROWTH AND INDUSTRY EXPANSION APPROACH BRP has strategically targeted the geographies experiencing the fastest demographic and economic growth BRP Locations at IPO Opportunistic Expansion Areas Targeted Footprint Additional BRP Locations Post IPO (Main Office) Additional BR
Slide 18: Executing on differentiated risk advisor production and recruitment
$109 $178 Million Dollar Producers Middle Market Risk Advisor 2018 2019 Risk Advisors 151 240 Risk Advisors onboarded(2) 20 40 As % of current Risk Advisors 13% 17% Note: (1) Marsh, Berry & Co; Represents the mid-point for producers with more than 3 years in the industry and a book >$1mm; (2) Organi
Slide 19: Executing on a differentiated partnership strategy
EXECUTING ON A DIFFERENTIATED PARTNERSHIP STRATEGY 19 BRP’s focus on attracting high-quality partners enables double digit organic growth Strategic Buyers Private Equity Buyers Low growth, focused on financeable EBITDA, significant cost cutting and margins Sellers “selling out” Highly leveraged with
Slide 20: Culture binds organization together through Azimuth
CULTURE BINDS ORGANIZATION TOGETHER THROUGH AZIMUTH To be regarded as the preeminent insurance advisory firm fueled by relationships, powered by people and exemplified by client adoption and loyalty, colleague development and engagement and operational acumen and evolution. Deliver indispensable tai
Slide 21: A firm commitment to environmental, social and governance principles
A FIRM COMMITMENT TO ENVIRONMENTAL, SOCIAL AND GOVERNANCE PRINCIPLES Risk Management ▪ BRP maintains a risk management framework designed to control risk ▪ BRP’s in-house Legal and Finance teams work closely with external consultants to: ▪ Lead BRP’s leadership team through a formal risk assessment
Slide 22: Executing on Top 10 in 10
Durable and Outsized Growth Proven Partnership Strategy Enables EXECUTING ON TOP 10 IN 10 Note: * Independent Insurance Broker in U.S. * 22 8
Slide 23: Appendix
APPENDIX BRP
Slide 24: FY 2020 acquisitions and purchase multiples at various forward growth rates
FY 2020 ACQUISITIONS AND PURCHASE MULTIPLES ASSOCIATED WITH VARIOUS FORWARD GROWTH RATES 24 (1) Represents the approximate performance at the defined growth rate. Certain earnouts are capped at growth rates less than 25% and certain earnouts provide benefits to Sellers at growth rates in excess of 2
Slide 25: Organic revenue growth and pro forma revenue reconciliation
3-months ended 9-months ended 12/31/2019 3/31/2020 6/30/2020 9/30/2020 9/30/2020 Commissions and fees $36.6 $54.2 $51.3 $65.8 $171.3 Partnership commissions and fees (13.3) (22.9) (12.1) (19.6) (54.6) Organic Revenue 23.3 31.3 39.2 46.2 116.7 Prior year organic rev (% growth base) 20.8 29.8 33.1 38.
Slide 26: Insight Beyond Insurance
& B R p | INSIGHT BEYOND INSURANCE