Brown & Brown, Inc. (NYSE:BRO) Q2 2020 Results Earnings Conference Call July 28, 2020 8:00 AM ET Company Participants Powell Brown - President and Chief Executive Officer Andrew Watts - Chief Financial Officer Conference Call Participants Mike Zaremski - Credit Suisse Elyse Greenspan - Wells Fargo Phil Stefano - Deutsche Bank Greg Peters - Raymond James Yaron Kinar - Goldman Sachs Mark Hughes - SunTrust Meyer Shields - KBW Michael Phillips - Morgan Stanley Operator Good morning and welcome to the Brown & Br ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.10 Par Value BRO New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

Brown & Brown, Inc. (NYSE:BRO) Q1 2020 Earnings Conference Call April 28, 2020 8:00 AM ET Company Participants Powell Brown - President and Chief Executive Officer Andrew Watts - Chief Financial Officer Conference Call Participants Greg Peters - Raymond James Elyse Greenspan - Wells Fargo Mark Hughes - SunTrust Yaron Kinar - Goldman Sachs Mike Zaremski - Credit Suisse Meyer Shields - KBW Ron Bobman - Capital Returns Operator Good morning and welcome to the Brown & Brown Inc. First Quarter Earnings Call. Tod ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------ ...

Brown & Brown, Inc. (NYSE:BRO) Q4 2019 Results Conference Call January 28, 2020 8:00 AM ET Company Participants Powell Brown - President and Chief Executive Officer Andrew Watts - Chief Financial Officer Conference Call Participants Greg Peters - Raymond James Elyse Greenspan - Wells Fargo Mark Hughes - SunTrust Yaron Kinar - Goldman Sachs Josh Shanker - Deutsche Bank Mike Zaremski - Credit Suisse Meyer Shields - KBW Operator Good morning. And welcome to the Brown & Brown Fourth Quarter Earnings Call. Today ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | --- | |---------------------------------------------------------|----------------------------------|---------------------------------------------------- ...

Financial Data and Key Metrics Changes - For Q3 2019, the company reported revenue of $618.7 million, representing a 16.5% increase year-over-year, with organic revenue growth of 3.4% [4][13] - The EBITDAC margin was 31.5%, down 200 basis points compared to 2018 [4] - Net income per share increased by 7.9% to $0.41 compared to Q3 2018 [4][14] - The effective tax rate for Q3 2019 was 23.9%, down from 25.5% in Q3 2018 [14] Business Line Data and Key Metrics Changes - The Retail segment achieved organic revenue growth of 2.9% in Q3, with total revenue growth of over 29% driven by acquisitions [9][18] - The National Programs segment experienced organic growth of 1.6%, which would have been over 7% without the prior year adjustment [10][20] - The Wholesale Brokerage segment reported organic revenue growth of 11% [11][21] - The Services segment saw a decrease in organic revenue of 70 basis points, impacted by lower claims in the Social Security advocacy business [12][22] Market Data and Key Metrics Changes - Premium rates continued to increase slightly, with specific lines such as commercial auto seeing increases of 5% to 10% [5][6] - E&S placements for CAT-prone properties experienced rate increases of 5% to 15% [6][7] - Property coverage in California is under pressure, with some carriers pulling back from traditional coverage [7][8] Company Strategy and Development Direction - The company remains optimistic about the economy, with a focus on disciplined capital and M&A approaches [26] - Technology is a key priority, with a new head of technology appointed to enhance digital strategy and customer engagement [8][26] - The acquisition pipeline is strong, with 18 deals closed in the first nine months of the year, totaling $86 million in annualized revenue [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economy, noting potential impacts from international trade relations [26] - The expectation is for premium rates to continue to increase slightly into early next year, with strong competition for low loss accounts [26] - The company is monitoring economic indicators and remains prepared for potential adverse impacts from global events [30] Other Important Information - The company reported a cash conversion ratio of over 24%, which is about 1 percentage point higher than the previous year [24] - The company has increased its dividend for the 26th consecutive year, with a 6.25% increase approved by the Board of Directors [14] Q&A Session Summary Question: Insights on retail performance and future organic growth - Management noted that organic growth is expected to be slightly lower in the second half of the year due to revenue recognition standards, but year-to-date growth is at 4% compared to 2.8% last year [30] Question: Details on a recent retail acquisition and its impact on margins - The recent acquisition is expected to compress retail margins by 60 to 80 basis points in Q4, with approximately $20 million in revenue recognized in Q1 [31][32] Question: Outlook on contingent commissions for 2020 - Management indicated it is too early to provide guidance on contingent commissions for 2020, as adjustments will be made based on actual cash received [33][34] Question: Balance between organic revenue growth from rates versus new business - Historically, two-thirds to three-quarters of organic growth is driven by exposure units, with one-third to one-fourth from rate increases [36] Question: Challenges in the Social Security advocacy business - The decline in organic growth is due to the winding down of a claims adjudication process, with residual impacts expected in the upcoming quarters [39] Question: Update on M&A pricing environment - The M&A environment remains competitive, with increased interest from smaller brokers to partner with larger firms due to the need for investment in capabilities [42][43] Question: Impact of recent earthquakes on rates - There was momentum in earthquake coverage rates prior to the July earthquakes, with a recognition of potential risks leading to increased purchasing [54]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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 BROWN & BROWN, INC. (Exact name of Registrant as specified in its charter) Florida 59-0864469 (State or o ...

Financial Data and Key Metrics Changes - The company reported revenue of $575.2 million for Q2 2019, representing a growth of 21.6% year-over-year, with organic revenue growth of 3.9% [8][21] - EBITDAC margin was 29.3%, an increase of 20 basis points compared to Q2 2018 [9] - Net income per share grew by 26.9% to $0.33 compared to the same quarter in 2018 [9][22] - The effective tax rate decreased to 25.1% from 26.8% in Q2 2018 [22] Business Line Data and Key Metrics Changes - Retail segment achieved organic growth of 5.6% in Q2, driven by new business activity and rate increases [14][29] - National Programs segment grew organically by 2%, with strong performance in Earthquake programs [17][31] - Wholesale Brokerage segment reported organic revenue growth of 7%, primarily due to new business and rate improvements [18][32] - Services segment experienced a decline in organic revenue of 4.1%, attributed to lower claims in the Social Security Advocacy business [19][33] Market Data and Key Metrics Changes - The overall market remains competitive, with upward movement in premium rates for several lines, including automobile and general liability [11][12] - Workers' Compensation rates are consistently down across most regions, while commercial auto rates have increased by 7% to 10% [11][12] - The company noted that risk-bearers are becoming more selective in underwriting certain lines and geographies [12] Company Strategy and Development Direction - The company remains focused on M&A activity, having completed four acquisitions in Q2, bringing the total to 12 for the year with estimated annualized revenues of $50 million [13][36] - Investment in technology and innovation is a key priority, aimed at improving customer experience and operational efficiency [13][38] - The company maintains a disciplined approach to capital deployment in M&A, despite competition from private equity firms [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economy, noting that businesses continue to invest and hire more employees [36] - Premium rates are expected to continue increasing slightly, although competition remains strong for accounts with low losses [36] - The company anticipates continued organic growth in the low to mid-single digits in a steady-state economy [42] Other Important Information - The company reported a cash conversion ratio slightly below last year, with expectations of a decline in free cash flow conversion for the year [71][72] - The company is investing in a new campus in Daytona Beach, with CapEx expected to be around $30 million to $35 million this year [74] Q&A Session Summary Question: Retail growth in Q2 - Management indicated that the 5.6% growth in retail was strong and not materially impacted by revenue recognition adjustments [40][41] Question: Margin improvement excluding supplemental commissions - Management clarified that despite a one-time supplemental commission, margins improved significantly, with a net benefit from legal costs [45][46] Question: Market overview and underwriting criteria - Management noted tightening underwriting criteria across various lines, particularly in property and liability [50][51] Question: Impact of earthquake brokerage business - Management stated that while there was pressure on rates, the recent earthquake events did not significantly impact their business [54] Question: Future expectations for Social Security Advocacy - Management expects continued headwinds from the Social Security Advocacy business, with a larger impact anticipated in Q3 [78] Question: Revenue recognition impact - Management confirmed that a one-time adjustment from the previous year would not recur, affecting comparability [81][82]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 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 | --- | --- | --- | |---------------------------------------------------------|------------------------------------ ...