UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 BROWN & BROWN, INC. (Exact name of Registrant as specified in its charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-13619 Florida 59-0864469 (State or other jurisdiction of inc ...

[Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) [Third Quarter 2024 Performance](index=1&type=section&id=Third%20Quarter%202024%20Performance) Brown & Brown reported strong growth in Q3 2024, with total revenues increasing 11.0% to $1.2 billion, driven by a 9.5% rise in Organic Revenue. Net income saw a significant increase of 33.0% to $234 million, resulting in a diluted EPS of $0.81, up 30.6% year-over-year. The adjusted diluted EPS also grew by 12.3% to $0.91 Q3 2024 Key Financial Metrics (vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $1.2 billion | $1.068 billion | +11.0% | | Organic Revenue Growth | 9.5% | N/A | N/A | | Income Before Income Taxes | $317 million | $242 million | +31.0% | | Net Income | $234 million | $176 million | +33.0% | | Diluted Net Income Per Share (EPS) | $0.81 | $0.62 | +30.6% | | Diluted Net Income Per Share - Adjusted | $0.91 | $0.81 | +12.3% | | EBITDAC - Adjusted | $414 million | $370 million | +11.9% | - The President and CEO, J. Powell Brown, attributed the strong results to the company's teammates, highlighting "great momentum" and the leveraging of "collective capabilities"[5](index=5&type=chunk) [Year-to-Date 2024 Performance](index=1&type=section&id=Year-to-Date%202024%20Performance) For the first nine months of 2024, the company's revenues grew 12.1% to $3.6 billion, with Organic Revenue increasing by 9.4%. Net income rose 30.1% to $783 million, leading to a diluted EPS of $2.73, a 29.4% increase compared to the same period in 2023. Adjusted diluted EPS increased by 16.4% to $2.98 Nine Months Ended Sept 30, 2024 Key Financial Metrics (vs. 2023) | Metric | YTD 2024 | YTD 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $3.6 billion | $3.231 billion | +12.1% | | Organic Revenue Growth | 9.4% | N/A | N/A | | Income Before Income Taxes | $1.0 billion | $791 million | +30.0% | | Net Income | $783 million | $602 million | +30.1% | | Diluted Net Income Per Share (EPS) | $2.73 | $2.11 | +29.4% | | Diluted Net Income Per Share - Adjusted | $2.98 | $2.56 | +16.4% | | EBITDAC - Adjusted | $1.3 billion | $1.127 billion | +15.4% | [Non-GAAP Financial Reconciliations](index=1&type=section&id=Non-GAAP%20Financial%20Reconciliations) [Reconciliation of Organic Revenue](index=1&type=section&id=Reconciliation%20of%20Organic%20Revenue) The company reconciles GAAP commissions and fees to the non-GAAP measure of Organic Revenue by adjusting for profit-sharing contingent commissions, acquisitions, and dispositions. For Q3 2024, Organic Revenue was $1.093 billion, representing a 9.5% growth over the prior year. For the nine-month period, Organic Revenue reached $3.315 billion, a 9.4% increase Organic Revenue Reconciliation (in millions) | Description | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Commissions and fees | $1,155 | $1,049 | $3,545 | $3,193 | | Core commissions and fees | $1,128 | $1,022 | $3,435 | $3,105 | | **Organic Revenue** | **$1,093** | **$998** | **$3,315** | **$3,031** | | **Organic Revenue growth %** | **9.5%** | N/A | **9.4%** | N/A | [Reconciliation of Diluted Net Income Per Share - Adjusted](index=2&type=section&id=Reconciliation%20of%20Diluted%20Net%20Income%20Per%20Share%20-%20Adjusted) This section details the adjustments made to GAAP diluted EPS to arrive at the adjusted figure. For Q3 2024, GAAP diluted EPS of $0.81 was adjusted for items including a -$0.02 change in estimated acquisition earnout payables and a $0.12 impact from amortization, resulting in an adjusted EPS of $0.91 Adjusted Diluted EPS Reconciliation | Description | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Diluted net income per share (GAAP) | $0.81 | $0.62 | $2.73 | $2.11 | | Change in est. acquisition earnout payables | ($0.02) | $0.09 | ($0.02) | $0.09 | | Amortization | $0.12 | $0.11 | $0.35 | $0.33 | | **Diluted Net Income Per Share - Adjusted** | **$0.91** | **$0.81** | **$2.98** | **$2.56** | [Reconciliation of EBITDAC - Adjusted](index=3&type=section&id=Reconciliation%20of%20EBITDAC%20-%20Adjusted) The report reconciles Income Before Income Taxes to the non-GAAP measures of EBITDAC and EBITDAC - Adjusted. For Q3 2024, EBITDAC - Adjusted was $414 million, up from $370 million in Q3 2023, with the corresponding margin increasing slightly from 34.6% to 34.9% EBITDAC - Adjusted Reconciliation (in millions) | Description | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Income before income taxes | $317 | $242 | $1,028 | $791 | | EBITDAC | $415 | $371 | $1,330 | $1,117 | | **EBITDAC - Adjusted** | **$414** | **$370** | **$1,300** | **$1,127** | | **EBITDAC Margin - Adjusted** | **34.9%** | **34.6%** | **35.9%** | **34.9%** | [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated income statement details the company's financial performance, showing total revenues of $1.186 billion for Q3 2024 and $3.622 billion for the nine months ended. Net income attributable to the company was $234 million and $783 million for the respective periods, both showing strong growth over the prior year Income Statement Summary (in millions) | Description | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $1,186 | $1,068 | $3,622 | $3,231 | | Total expenses | $869 | $826 | $2,594 | $2,440 | | Income before income taxes | $317 | $242 | $1,028 | $791 | | Net income attributable to the Company | $234 | $176 | $783 | $602 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, the company's balance sheet shows total assets of $17.525 billion, a significant increase from $14.883 billion at the end of 2023. This growth was supported by an increase in total equity to $6.480 billion from $5.579 billion over the same period Balance Sheet Summary (in millions) | Description | Sept 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $957 | $700 | | Goodwill | $7,577 | $7,341 | | **Total Assets** | **$17,525** | **$14,883** | | Long-term debt | $3,367 | $3,227 | | **Total Liabilities** | **$11,045** | **$9,304** | | **Total Equity** | **$6,480** | **$5,579** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash provided by operating activities was $813 million, compared to $704 million in the prior-year period. The company used $119 million in investing activities, primarily for business acquisitions, and $341 million in financing activities, which included debt payments and dividends Cash Flow Summary - Nine Months Ended Sept 30 (in millions) | Description | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $813 | $704 | | Net cash used in investing activities | ($119) | ($193) | | Net cash used in financing activities | ($341) | ($275) | | Net increase in cash and cash equivalents | $398 | $238 | [Supplemental Information](index=7&type=section&id=Supplemental%20Information) [Conference Call Information](index=7&type=section&id=Conference%20Call%20Information) The company will host a conference call and webcast to discuss its third-quarter 2024 financial results on Tuesday, October 29, 2024, at 8:00 AM (EDT). Materials will be accessible through the Investor Relations section of its website - A conference call to discuss Q3 2024 results is scheduled for October 29, 2024, at 8:00 AM (EDT)[15](index=15&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, cautioning that future results may differ from the forward-looking statements in the press release. It outlines numerous risk factors that could impact performance, including cybersecurity threats, acquisition-related risks, economic conditions, regulatory changes, and competition - Key risk factors that could affect future results include: - Inability to hire and retain qualified employees - Cybersecurity attacks or other IT interruptions - Acquisition-related risks, including integration challenges - Adverse economic and political conditions - Fluctuations in commission revenue and the effects of inflation or higher interest rates[17](index=17&type=chunk)[19](index=19&type=chunk) [Non-GAAP Financial Measures Explanation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company justifies its use of non-GAAP measures such as Organic Revenue, EBITDAC, and Adjusted Diluted EPS, stating they provide meaningful ways to evaluate operating performance by excluding certain variable or non-recurring items. The report also notes that starting in 2024, the calculation for Adjusted EPS was modified to exclude amortization of intangible assets, and Foreign Currency Translation is no longer excluded from certain adjusted earnings measures - The company uses non-GAAP measures because it believes they provide additional meaningful methods to evaluate operating performance from period to period, excluding items with high variability that are not indicative of ongoing performance[20](index=20&type=chunk) - Beginning January 1, 2024, the company no longer excludes Foreign Currency Translation from EBITDAC - Adjusted and Diluted Net Income Per Share - Adjusted. Additionally, amortization of intangible assets is now excluded from the calculation of Diluted Net Income Per Share - Adjusted[22](index=22&type=chunk)[23](index=23&type=chunk) - Key non-GAAP measures are defined as: - **Organic Revenue:** Core commissions and fees adjusted for acquisitions, divestitures, and foreign currency translation - **EBITDAC:** Income before interest, taxes, depreciation, amortization, and the change in estimated acquisition earn-out payables - **Diluted Net Income Per Share - Adjusted:** Diluted EPS excluding after-tax impacts of earn-out changes, disposals, certain costs, and amortization[25](index=25&type=chunk)[26](index=26&type=chunk)

DAYTONA BEACH, Fla., Oct. 28, 2024 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE:BRO) (the "Company") announced its unaudited financial results for the third quarter of 2024. Revenues for the third quarter of 2024 under U.S. generally accepted accounting principles ("GAAP") were $1.2 billion, increasing $118 million, or 11.0%, compared to the third quarter of the prior year, with commissions and fees increasing by 10.1% and Organic Revenue increasing by 9.5%. Income before income taxes was $317 million, inc ...

DAYTONA BEACH, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE: BRO) today announced that the board of directors has declared a regular quarterly cash dividend of $0.15 per share. The dividend is payable on November 13, 2024, to shareholders of record on November 6, 2024. The dividend represents a 15% increase from the previous regular quarterly cash dividend of $0.13 per share and is Brown & Brown’s 31st consecutive annual dividend increase. About Brown & Brown, Inc. Brown & Brown, Inc. ...

Analysts on Wall Street project that Brown & Brown (BRO) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing an increase of 22.5% year over year. Revenues are projected to reach $1.16 billion, increasing 8.7% from the same quarter last year.Over the last 30 days, there has been an upward revision of 1.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecas ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Brown & Brown (BRO) . This company, which is in the Zacks Insurance - Brokerage industry, shows potential for another earnings beat. This insurance company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarte ...

Company Overview - Brown & Brown (BRO) is positioned for growth due to higher core commissions and fees, new business, solid retention, rate increases, strategic acquisitions, a strong financial position, and effective capital deployment [1] - BRO's earnings have increased by 18.4% over the last five years, outperforming the industry average of 13.2% [1] - The company has a strong earnings surprise history, surpassing estimates in each of the last four quarters with an average earnings surprise of 9.82% [1] Financial Performance - The top line has benefited from improving commissions and fees, driven by increasing new business, strong retention, and continued rate increases, resulting in a five-year annual growth rate of 14% [2] - BRO has an industry-leading adjusted EBITDAC margin, reflecting its focus on organic growth and margin expansion [2] - The company has a strong liquidity position with an improving leverage ratio, ensuring strong cash conversion and continuous cash flow generation for shareholder wealth distribution through dividend increases [4] - BRO has raised dividends for 30 consecutive years, with a five-year CAGR of 8.7% [4] Strategic Growth - Brown & Brown's inorganic growth is notable, with strategic acquisitions helping to capitalize on market opportunities, strengthen its product and service portfolio, and expand its global reach [3] - In Q2 2024, BRO made 10 acquisitions with estimated annual revenues of $13 million, continuing to build relationships with other companies [3] Profitability Metrics - The trailing 12-month return on equity for BRO was 17%, which lags behind the industry average of 32.4%, indicating room for improvement in utilizing shareholders' funds [5] - The return on invested capital in the trailing 12 months was 7.6%, compared unfavorably with the industry average of 9.7%, reflecting inefficiencies in generating income [6] - Despite these challenges, BRO's total shareholder return has outperformed its peer group and the S&P 500 over the last five years, with a 10-year average total shareholder return of 399% [6] Industry Context - Other key players in the insurance industry include Heritage Insurance (HRTG), Palomar Holdings (PLMR), and CNO Financial Group (CNO) [7] - Heritage Insurance has shown strong earnings performance, surpassing estimates in three of the last four quarters with an average surprise of 49.15% [7] - Palomar has also exceeded earnings estimates in the last four quarters, with an average surprise of 17.10%, driven by new business and strong premium retention [9] - CNO Financial has surpassed estimates in three of the last four quarters, with an average surprise of 21.21%, focusing on the underserved middle-income market and improving agent productivity through technology investments [10][11]

Brown & Brown, Inc.'s (BRO) subsidiary has purchased The Canopy Group. The addition of Canopy Group will boost Brown & Brown's personal line business. Le Sueur, MN-based The Canopy Group is a multiline insurance agency focusing primarily on personal lines and commercial property and casualty for small businesses. It serves customer across Minnesota. Adding Canopy to the portfolio will not only expand BRO's personal line business but also expand its small business commercial offerings. Meanwhile, Canopy stan ...

DAYTONA BEACH, Fla., Oct. 03, 2024 (GLOBE NEWSWIRE) -- J. Scott Penny, chief acquisitions officer of Brown & Brown, Inc. (NYSE:BRO), and Paul Borchert and Jeff McDonald, principals of The Canopy Group, Inc., today announced that a subsidiary of Brown & Brown, Inc. has acquired the assets of The Canopy Group. The Canopy Group is a multiline insurance agency focusing primarily on personal lines and commercial property and casualty for small businesses. Based in Le Sueur, Minnesota, The Canopy Group serves ove ...

DAYTONA BEACH, Fla., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE: BRO) announces it will release its 2024 third-quarter earnings on Monday, October 28, 2024, after the close of the market. On Tuesday, October 29, 2024, J. Powell Brown, Brown & Brown's president and chief executive officer, and R. Andrew Watts, Brown & Brown's executive vice president and chief financial officer, will host an investor update conference call concerning Brown & Brown's third-quarter 2024 financial results. You ...