Brown & Brown, Inc. publicizes fourth quarter 2023 outcomes, together with whole revenues of $1,026.2 million, a rise of 13.8%; Natural Income development of seven.7%; diluted internet revenue per share of $0.94; Diluted Web Earnings Per Share – Adjusted of $0.58; and a brand new alignment of its companies into three segments

DAYTONA BEACH, Fla., Jan. 22, 2024 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE:BRO) (the “Firm”) introduced its unaudited monetary outcomes for the fourth quarter and full 12 months of 2023.

Revenues for the fourth quarter of 2023 below U.S. usually accepted accounting ideas (“GAAP”) had been $1,026.2 million, rising $124.8 million, or 13.8%, in comparison with the fourth quarter of the prior 12 months, with commissions and costs rising by 12.4% and Natural Income rising by 7.7%. Earnings earlier than revenue taxes was $355.1 million, rising 82.9% from the fourth quarter of the prior 12 months with Earnings Earlier than Earnings Taxes Margin rising to 34.6% from 21.5%. EBITDAC – Adjusted was $317.7 million, rising 11.7% from the fourth quarter of the prior 12 months with EBITDAC Margin – Adjusted reducing to 31.0% from 31.4%. Web revenue was $268.6 million, rising $123.4 million, or 85.0%, and diluted internet revenue per share elevated to $0.94, or 84.3%, with Diluted Web Earnings Per Share – Adjusted rising to $0.58, or 16.0%, every as in comparison with the fourth quarter of the prior 12 months.

Revenues for the twelve months ended December 31, 2023 below GAAP had been $4,257.1 million, rising $683.7 million, or 19.1%, as in comparison with 2022, with commissions and costs rising by 17.9%, and Natural Income rising by 10.2%. Earnings earlier than revenue taxes was $1,146.1 million, rising 30.8% with Earnings Earlier than Earnings Taxes Margin rising to 26.9% from 24.5% as in comparison with 2022. EBITDAC – Adjusted was $1,444.7 million, which was a rise of 23.1% and EBITDAC Margin – Adjusted elevated to 33.9% from 32.7% as in comparison with 2022. Web revenue was $870.5 million, rising $198.7 million, or 29.6%, with diluted internet revenue per share rising to $3.05, or 28.7%, and Diluted Web Earnings Per Share – Adjusted rising to $2.81, or 23.2%, every as in comparison with 2022.

J. Powell Brown, president and chief govt officer of the Firm, famous, “We’re extraordinarily happy with our efficiency within the fourth quarter and for the total 12 months, during which we grew our revenues 10.2% organically and crossed our intermediate income objective of $4 billion. We now embark on our subsequent objective of $8 billion.”

The Firm additionally introduced a brand new alignment of its companies along with the divestiture of sure companies inside our Providers section within the fourth quarter of 2023, transferring from 4 to 3 segments starting in 2024: Retail, Applications and Wholesale Brokerage.

See info concerning non-GAAP measures introduced later on this press launch.

(1) Contains the achieve on disposal of $0.35 related to the beforehand introduced sale of sure third-party administrator companies within the fourth quarter of 2023.

See info concerning non-GAAP measures introduced later on this press launch.

(1) Contains the achieve on disposal of $134.6 million related to the beforehand introduced sale of sure third-party administrator companies within the fourth quarter of 2023.

See info concerning non-GAAP measures introduced later on this press launch.

Convention name, webcast and slide presentation

A convention name to debate the outcomes of the fourth quarter and full 12 months of 2023 will probably be held on Tuesday, January 23, 2024, at 8:00 AM (EST). The Firm could check with a slide presentation throughout its convention name. You possibly can entry the webcast and the slides from the “Investor Relations” part of the Firm’s web site at bbinsurance.com.

About Brown & Brown

Brown & Brown, Inc. (NYSE: BRO) is a number one insurance coverage brokerage agency, delivering threat administration options to people and companies since 1939. With roughly 16,000 teammates and 500+ areas worldwide, we’re dedicated to offering progressive methods to assist shield what our clients worth most. For extra info or to seek out an workplace close to you, please go to bbinsurance.com.

Ahead-looking statements
This press launch could comprise sure statements regarding future outcomes that are “forward-looking statements” inside the which means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Trade Act of 1934, that are supposed to be coated by the secure harbors created by these legal guidelines. You possibly can establish these statements by forward-looking phrases resembling “could,” “will,” “ought to,” “count on,” “anticipate,” “consider,” “intend,” “estimate,” “plan” and “proceed” or related phrases. We’ve got primarily based these statements on our present expectations about potential future occasions. Though we consider the expectations expressed within the forward-looking statements included on this press launch are primarily based upon affordable assumptions inside the bounds of our information of our enterprise, plenty of elements might trigger precise outcomes to vary materially from these expressed in any forward-looking statements, whether or not oral or written, made by us or on our behalf. Many of those elements have beforehand been recognized in filings or statements made by us or on our behalf. Essential elements which might trigger our precise outcomes to vary, probably materially from the forward-looking statements on this press launch embrace, however are usually not restricted to, the next objects: the Firm’s willpower because it finalizes its monetary outcomes for the fourth quarter and full 12 months of 2023 that its monetary outcomes differ from the present preliminary unaudited numbers set forth herein; the shortcoming to retain or rent certified staff, in addition to the lack of any of our govt officers or different key staff; acquisition-related dangers that would negatively have an effect on the success of our development technique, together with the likelihood that we could not be capable to efficiently establish appropriate acquisition candidates, full acquisitions, efficiently combine acquired companies into our operations and broaden into new markets; a cybersecurity assault or some other interruption in info expertise and/or knowledge safety that will impression our operations or the operations of third events that assist us; dangers associated to our worldwide operations, which can lead to extra dangers or require extra administration time and expense than our home operations to attain or preserve profitability; the consequences of inflation; the requirement for added sources and time to adequately reply to dynamics ensuing from fast technological change; the lack of or vital change to any of our insurance coverage firm relationships, which might lead to lack of capability to put in writing enterprise, extra expense, lack of market share or materials lower in our commissions; the impact of pure disasters on our profit-sharing contingent commissions, insurer capability and claims bills from our capitalized captive insurance coverage services; antagonistic financial circumstances, political circumstances, outbreaks of battle, pure disasters, or regulatory modifications in states or nations the place we’ve a focus of our enterprise; the shortcoming to keep up our tradition or a major change in administration, administration philosophy or our enterprise technique; claims expense ensuing from the restricted underwriting threat related to our participation in capitalized captive insurance coverage services; dangers related to our vehicle and leisure car seller companies (“F&I”) companies; dangers going through us in our Providers section, together with our third-party claims administration operations, which might be distinct from these we face in our insurance coverage middleman operations; the constraints of our system of disclosure and inside controls and procedures in stopping errors or fraud, or in informing administration of all materials info in a well timed method; the numerous management sure shareholders have over the Firm; modifications in knowledge privateness and safety legal guidelines and rules or any failure to adjust to such legal guidelines and rules; improper disclosure of confidential info; our capacity to adjust to non-U.S. legal guidelines, rules and insurance policies; the potential antagonistic impact of sure precise or potential claims, regulatory actions or proceedings on our companies, outcomes of operations, monetary situation or liquidity; uncertainty in our enterprise practices and compensation preparations with insurance coverage carriers as a consequence of potential modifications in rules; regulatory modifications that would cut back our profitability or development by rising compliance prices, expertise compliance, limiting the services or products we could promote, the markets we could enter, the strategies by which we could promote our services and products, or the costs we could cost for our companies and the type of compensation we could settle for from our clients, carriers and third events; rising scrutiny and altering expectations from traders and clients with respect to our environmental, social and governance practices; a lower in demand for legal responsibility insurance coverage because of tort reform laws; our failure to adjust to any covenants contained in our debt agreements; the likelihood that covenants in our debt agreements might forestall us from partaking in sure probably useful actions; modifications within the U.S.-based credit score markets which may adversely have an effect on our enterprise, outcomes of operations and monetary situation; dangers related to the present rate of interest setting, and to the extent we use debt to finance our investments, modifications in rates of interest will have an effect on our value of capital and internet funding revenue; modifications in present U.S. or world financial circumstances, together with an prolonged slowdown within the markets during which we function; disintermediation inside the insurance coverage trade, together with elevated competitors from insurance coverage firms, expertise firms and the monetary companies trade, in addition to the shift away from conventional insurance coverage markets; circumstances that lead to decreased insurer capability; quarterly and annual variations in our commissions that consequence from the timing of coverage renewals and the web impact of latest and misplaced enterprise manufacturing; intangible asset threat, together with the likelihood that our goodwill could change into impaired sooner or later; future pandemics, epidemics or outbreaks of infectious ailments, and the ensuing governmental and societal responses; different dangers and uncertainties as could also be detailed sometimes in our public bulletins and Securities and Trade Fee (“SEC”) filings; and different elements that the Firm could not have at the moment recognized or quantified. Ahead-looking statements that we make or which might be made by others on our behalf are primarily based upon a information of our enterprise and the setting during which we function, however due to the elements listed above, amongst others, precise outcomes could differ from these within the forward-looking statements. Consequently, these cautionary statements qualify the entire forward-looking statements we make herein. We can not guarantee you that the outcomes or developments anticipated by us will probably be realized, or even when considerably realized, that these outcomes or developments will consequence within the anticipated penalties for us or have an effect on us, our enterprise or our operations in the way in which we count on. We warning readers to not place undue reliance on these forward-looking statements. All forward-looking statements made herein are made solely as of the date of this launch, and the Firm doesn’t undertake any obligation to publicly replace or appropriate any forward-looking statements to replicate occasions or circumstances that subsequently happen or of which the Firm hereafter turns into conscious.

Non-GAAP supplemental monetary info
This press launch accommodates references to “non-GAAP monetary measures” as outlined in SEC Regulation G, consisting of Whole Revenues – Adjusted, Natural Income, EBITDAC, EBITDAC Margin, EBITDAC – Adjusted, EBITDAC Margin – Adjusted and Diluted Web Earnings Per Share – Adjusted. We current these measures as a result of we consider such info is of curiosity to the funding group and since we consider it supplies extra significant strategies to judge the Firm’s working efficiency from interval to interval on a foundation that will not be in any other case obvious on a GAAP foundation because of the impression of sure objects which have a excessive diploma of variability, that we consider are usually not indicative of ongoing efficiency and that aren’t simply comparable from interval to interval. This non-GAAP monetary info needs to be thought-about along with, not in lieu of, the Firm’s consolidated revenue statements and steadiness sheets as of the related date. In step with Regulation G, an outline of such info is supplied under and a reconciliation of such objects to GAAP info might be discovered inside this press launch in addition to in our periodic filings with the SEC.

We view Natural Income and Natural Income development as necessary indicators when assessing and evaluating our efficiency on a consolidated foundation and for every of our 4 segments, as a result of it permits us to find out a comparable, however non-GAAP, measurement of income development that’s related to the income sources that had been part of our enterprise in each the present and prior 12 months and which might be anticipated to proceed sooner or later. As well as, we consider Diluted Web Earnings Per Share – Adjusted supplies a significant illustration of our working efficiency and improves the comparability of our outcomes between durations by excluding the impression of the change in estimated acquisition earn-out payables, the impression of overseas foreign money translation and sure different non-recurring or sometimes occurring objects. We additionally view Whole Revenues – Adjusted, EBITDAC, EBITDAC – Adjusted, EBITDAC Margin and EBITDAC Margin – Adjusted as necessary indicators when assessing and evaluating our efficiency, as they current extra comparable measurements of our working margins in a significant and constant method. As disclosed in our most up-to-date proxy assertion, we use Natural Income development, Diluted Web Earnings Per Share – Adjusted and EBITDAC Margin – Adjusted as key efficiency metrics for our short-term and long-term incentive compensation plans for govt officers and different key staff.

Non-GAAP Income Measures

• Whole Revenues – Adjusted is our whole revenues, excluding Overseas Forex Translation.

• Natural Income is our core commissions and costs much less: (i) the core commissions and costs earned for the primary 12 months by newly acquired operations; (ii) divested enterprise (core commissions and costs generated from places of work, books of enterprise or niches offered or terminated in the course of the comparable interval); and (iii) Overseas Forex Translation. The time period “core commissions and costs” excludes profit-sharing contingent commissions and due to this fact represents the revenues earned immediately from particular insurance coverage insurance policies offered and particular fee-based companies rendered. Natural Income might be expressed as a greenback quantity or a proportion charge when describing Natural Income development.

Non-GAAP Earnings Measures

• EBITDAC is outlined as revenue earlier than curiosity, revenue taxes, depreciation, amortization and the change in estimated acquisition earn-out payables.

• EBITDAC Margin is outlined as EBITDAC divided by whole revenues.

• EBITDAC – Adjusted is outlined as EBITDAC, excluding (i) (achieve)/loss on disposal, (ii) Acquisition/Integration Prices (as outlined under), (iii) for 2023, the 1Q23 Nonrecurring Value (as outlined under) and (iv) Overseas Forex Translation (as outlined under).

• EBITDAC Margin – Adjusted is outlined as EBITDAC – Adjusted divided by Whole Revenues – Adjusted.

• Diluted Web Earnings Per Share – Adjusted is outlined as diluted internet revenue per share, excluding the after-tax impression of (i) the change in estimated acquisition earn-out payables, (ii) (achieve)/loss on disposal, (iii) Acquisition/Integration Prices (as outlined under), (iv) for 2023, the 1Q23 Nonrecurring Value (as outlined under) and (v) Overseas Forex Translation (as outlined under).

Definitions Associated to Sure Elements of Non-GAAP Measures

• “Acquisition/Integration Prices” means the acquisition and integration prices (e.g., prices related to regulatory filings, authorized/accounting companies, due diligence and the prices of integrating our info expertise techniques) arising out of our acquisitions of GRP (Jersey) Holdco Restricted and its enterprise, Orchid Underwriters Company and CrossCover Insurance coverage Providers, and BdB Restricted firms, which aren’t thought-about to be regular, recurring or a part of the continued operations.

• “Overseas Forex Translation” means the period-over-period impression of overseas foreign money translation, which is calculated by making use of current-year overseas alternate charges to the varied useful currencies in our enterprise to our reporting foreign money of US {dollars} for a similar interval within the prior 12 months.

• “1Q23 Nonrecurring Value” means roughly $11.0 million expensed and considerably paid within the first quarter of 2023 to resolve a enterprise matter, which isn’t thought-about to be regular, recurring or a part of the continued operations.

Our trade friends could present related supplemental non-GAAP info with respect to a number of of those measures, though they might not use the identical or comparable terminology and will not make an identical changes and, due to this fact comparability could also be restricted.  This supplemental non-GAAP monetary info needs to be thought-about along with, and never in lieu of, the Firm’s condensed consolidated monetary statements.

For extra info:

R. Andrew Watts
Chief Monetary Officer
(386) 239-5770