Brown & Brown, Inc. · NYSE:BRO
Brown & Brown — Q4 2024 Earnings Presentation
24 slides from Brown & Brown's earnings presentation, Jan 28, 2025
Slide 1: Fourth Quarter & Full Year 2024 Results
Fourth Quarter & Full Year 2024 Results January 27, 2025
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: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results (Unaudited) $1.2B Total revenue growth of 15.4% 13.8% 32.9% $0.73 $0.86 $137M Organic EBITDAC Margin - Diluted Net Income Diluted Net Income Annual revenue of Revenue Adjusted up 190bps Per Share Per Share - Adjusted ten acquisitions growth decreased 22.3% increased 24.6%
Slide 6: Full Year 2024 Results
Full Year 2024 Results (Unaudited) $4.8B Total revenue growth of 12.9% 10.4% 35.2% $3.46 $3.84 $174M Organic EBITDAC Margin - Diluted Net Income Diluted Net Income Annual revenue of Revenue Adjusted up 130bps Per Share Per Share - Adjusted 32 acquisitions growth increased 13.4% increased 18.2% See i
Slide 7: Market & Business Overview – 4Q24
Market & Business Overview – 4Q24 Economy remained relatively consistent with prior quarters. Consumers continue to spend, even with higher levels of inflation and interest rates. Businesses are investing at modest levels. Rates for the admitted markets were relatively consistent with third quarter.
Slide 8: Segment Organic Revenue Growth
Segment Organic Revenue Growth (Unaudited) National Wholesale Retail Programs Brokerage Q4 2024 4.4% 38.6% 7.1% Full Year 2024 5.8% 22.4% 9.1% See important disclosures regarding non-GAAP measures on pages 2-3 and non-GAAP reconciliations on pages 14-22. © 2025 Brown & Brown, Inc. All rights reserve
Slide 9: Consolidated Financial Highlights - Adjusted
Consolidated Financial Highlights - Adjusted ($ Millions, Except Per Share Data; Adjusted & Unaudited) Fourth Quarter 2024 2023 $ Change % Change Total Revenues $1,184 $1,026 $158 15.4% Organic Revenue $1,078 $947 $131 13.8% Income Before Income Taxes - Adjusted $332 $261 $71 27.2% Income Before Inc
Slide 10: Retail Segment
Retail Segment ($ Millions; Unaudited) Fourth Quarter 2024 2023 $ Change % Change Total revenues $637 $582 $55 9.5% Organic Revenue $594 $569 $25 4.4% EBITDAC - Adjusted $177 $156 $21 13.5% EBITDAC Margin - Adjusted 27.8% 26.8% 100bps Business & Market Commentary Total revenues grew due to Employee
Slide 11: Programs Segment
Programs Segment ($ Millions; Unaudited) Fourth Quarter 2024 2023 $ Change % Change Total revenues $390 $303 $87 28.7% Organic Revenue $348 $251 $97 38.6% EBITDAC - Adjusted $187 $125 $62 49.6% EBITDAC Margin - Adjusted 47.9% 41.3% 660bps Business & Market Commentary Total revenues increased due to
Slide 12: Wholesale Brokerage Segment
Wholesale Brokerage Segment ($ Millions; Unaudited) Fourth Quarter 2024 2023 $ Change % Change Total revenues $144 $129 $15 11.6% Organic Revenue $136 $127 $9 7.1% EBITDAC - Adjusted $37 $35 $2 5.7% EBITDAC Margin - Adjusted 25.7% 27.1% (140bps) Business & Market Commentary Total revenues increased
Slide 13: Consolidated Financial Highlights - Adjusted
Consolidated Financial Highlights - Adjusted ($ Millions, Except Per Share Data; Adjusted & Unaudited) Full Year 2024 2023 $ Change % Change Total Revenues $4,805 $4,257 $548 12.9% Organic Revenue $4,393 $3,978 $415 10.4% Income Before Income Taxes - Adjusted $1,452 $1,214 $238 19.6% Income Before I
Slide 14: Closing Comments
Closing Comments Business leaders seem to be cautiously optimistic about the economic outlook. Anticipate admitted rates for the first half of 2025 to be similar to 4Q24. Expect CAT property rates for the first half of 2025 to decrease similar to 4Q24. Monitoring potential impact of California wildf
Slide 15: Reconciliation of Non-GAAP Measures
F O U R T H Q U A R T E R 2 0 2 4 R E S U LT S Reconciliation of Non-GAAP Measures © 2025 Brown & Brown, Inc. All rights reserved. 14
Slide 16: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Fourth Quarter 2024 Change in Estimated (Gain)/ As Acquisition Loss on Amortization Adjusted Reported Earn-Out Disposal Payables Total revenues $1,184 - - - $1,184 Income before income taxes $275 $11 ($1) $48 $332 1 Incom
Slide 17: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Fourth 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 $1,026 - - - - - $1,026
Slide 18: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Full Year 2024 Change in Estimated (Gain)/ As Acquisition Loss on Amortization Adjusted Reported Earn-Out Disposal Payables Total revenues $4,805 - - - $4,805 Income before income taxes $1,303 $2 ($31) $178 $1,452 1 Incom
Slide 19: GAAP to Adjusted Reconciliation
GAAP to Adjusted Reconciliation ($ Millions, Except Per Share Data; Unaudited) Full Year 2023 Change in 1Q23 Estimated (Gain)/ Acquisition As Amort- Nonrec Acquisition Loss on /Integration Adjusted Reported ization urring Earn-Out Disposal Costs Cost Payables Total revenues $4,257 - - - - - $4,257 I
Slide 20: Reconciliation of Income Before Income Taxes to EBITDAC and EBITDAC - Adjusted
Reconciliation of Income Before Income Taxes to EBITDAC and EBITDAC - Adjusted and Income Before Income Taxes Margin to EBITDAC Margin and EBITDAC Margin - Adjusted ($ Millions; Unaudited) Fourth Quarter Wholesale Retail Programs Other Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 2024 202
Slide 21: 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) Full Year Wholesale Retail Programs Other Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Tot
Slide 22: Reconciliation of Commissions and Fees to Organic Revenue
Reconciliation of Commissions and Fees to Organic Revenue ($ Millions; Unaudited) Fourth Quarter Wholesale Retail(1) Programs Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 Commissions and fees $633 $580 $385 $298 $143 $128 $1,161 $1,006 Total change 53 87 15 155 Total growth % 9.1% 29.2% 1
Slide 23: Reconciliation of Commissions and Fees to Organic Revenue
Reconciliation of Commissions and Fees to Organic Revenue ($ Millions; Unaudited) Full Year Wholesale Retail(1) Programs Total Brokerage 2024 2023 2024 2023 2024 2023 2024 2023 Commissions and fees $2,720 $2,500 $1,375 $1,160 $610 $539 $4,705 $4,199 Total change 220 215 71 506 Total growth % 8.8% 18
Slide 24: 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