Brown & Brown, Inc. · NYSE:BRO
Brown & Brown — Q2 2024 Earnings Presentation
18 slides from Brown & Brown's earnings presentation, Jul 23, 2024
Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results July 22, 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 and Diluted Net Income Per Share - Adjusted. We present
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: Second Quarter 2024 Results
Second Quarter 2024 Results (Unaudited) $1.2B Total revenue growth of 12.5% 10.0% 35.7% $0.90 $0.93 $13M Organic EBITDAC Margin - Diluted Net Income Diluted Net Income Annual Revenue of Revenue Adjusted up 150bps Per Share Per Share - Adjusted 10 acquisitions during growth from the same increased 34
Slide 6: Market & Business Overview – 2Q24
Market & Business Overview – 2Q24 Overall, the economy has not materially changed vs first quarter of 2024. Consumer spending remained robust, and companies continued to hire new employees and invest Changes in rates for the admitted markets remained relatively consistent with prior quarters for mos
Slide 7: Segment Organic Revenue Growth 2Q24
Segment Organic Revenue Growth 2Q24 (Unaudited) 7.3% 15.4% 11.0% Retail Programs Wholesale Brokerage See important disclosures regarding non-GAAP measures on pages 2-3 and non-GAAP reconciliations on pages 12-16. © 2024 Brown & Brown, Inc. All rights reserved. 6
Slide 8: Consolidated Financial Highlights - Adjusted
Consolidated Financial Highlights - Adjusted ($ Millions, Except Per Share Data; Adjusted & Unaudited) Second Quarter 2024 2023 $ Change % Change Total revenues $1,178 $1,047 $131 12.5% Organic Revenue $1,074 $976 $98 10.0% Income Before Income Taxes - Adjusted $360 $300 $60 20.0% Income Before Inco
Slide 9: Retail Segment
Retail Segment ($ Millions; Unaudited) Second Quarter 2024 2023 $ Change % Change Total revenues $646 $591 $55 9.3% Organic Revenue $615 $573 $42 7.3% EBITDAC - Adjusted $181 $166 $15 9.0% EBITDAC Margin - Adjusted 28.0% 28.1% (10bps) Business & Market Commentary Total revenues grew due to Employee
Slide 10: Programs Segment
Programs Segment ($ Millions; Unaudited) Second Quarter 2024 2023 $ Change % Change Total revenues $359 $310 $49 15.8% Organic Revenue $308 $267 $41 15.4% EBITDAC - Adjusted $178 $147 $31 21.1% EBITDAC Margin - Adjusted 49.6% 47.4% 220bps Business & Market Commentary Total revenues increased Organic
Slide 11: Wholesale Brokerage Segment
Wholesale Brokerage Segment ($ Millions; Unaudited) Second Quarter 2024 2023 $ Change % Change Total revenues $159 $139 $20 14.4% Organic Revenue $151 $136 $15 11.0% EBITDAC - Adjusted $53 $43 $10 23.3% EBITDAC Margin - Adjusted 33.3% 30.9% 240bps Business & Market Commentary Total revenues increase
Slide 12: Closing Comments
Closing Comments We expect economic growth in the second half of the year to be similar to the first half Casualty pricing should continue to increase due to severity and frequency of claims. We expect the rate of change for all other lines to be relatively consistent Outlook for CAT property rates
Slide 13: Reconciliation of Non-GAAP Measures
S E C O N D Q U A R T E R 2 0 2 4 R E S U LT S Reconciliation of Non-GAAP Measures © 2024 Brown & Brown, Inc. All rights reserved. 12
Slide 14: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Second Quarter 2024 Change in Estimated (Gain)/ As Acquisition Loss on Amortization Adjusted Reported Earn-Out Disposal Payables Total revenues $1,178 - - - $1,178 Income before income taxes $346 $1 ($31) $44 $360 Income
Slide 15: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Second Quarter 2023 Change in Estimated (Gain)/ Acquisition 1Q23 As Acquisition Loss on /Integration Amortization Nonrecurring Adjusted Reported Earn-Out Disposal Costs Cost Payables Total revenues $1,047 - - - - - $1,047
Slide 16: Reconciliation of Income Before Income Taxes to EBITDAC and EBITDAC - Adjusted
Reconciliation of Income Before Income Taxes to EBITDAC and EBITDAC - Adjusted and Income Before Income Taxes Margin to EBITDAC Margin and EBITDAC Margin - Adjusted ($ Millions; Unaudited) Second Quarter Wholesale Retail Programs Other Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 2024 202
Slide 17: Reconciliation of Commissions and Fees to Organic Revenue
Reconciliation of Commissions and Fees to Organic Revenue ($ Millions; Unaudited) Second Quarter Wholesale Retail(1) Programs Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 Commissions and fees $643 $589 $353 $308 $158 $139 $1,154 $1,036 Total change 54 45 19 118 Total growth % 9.2% 14.6% 1
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