Financial Data and Key Metrics Changes - For Q1 2019, the company reported revenue of $619.3 million, representing a 23.5% increase year-over-year. Organic revenue growth was 2% [8][21] - EBITDAC margin improved to 31.8%, up 60 basis points from the previous year. Net income per share increased by 25% to $0.40 compared to Q1 2018 [9][22] - Income before income tax rose by 25.4%, and net income increased by $23.1 million to $114 million [22][24] Business Line Data and Key Metrics Changes - Retail segment achieved organic growth of 3.6% in Q1, with total revenue growth of nearly 40% driven by acquisitions and contingent commissions [31] - National Programs segment saw a decrease of 2.3% in organic growth, primarily due to reduced flood claims processing revenue [15][34] - Wholesale Brokerage segment delivered organic revenue growth of 3.3%, with total revenues increasing by 6.7% due to recent acquisitions [36] - Services segment's organic revenue grew by 50 basis points, but was offset by lower claims in social security advocacy [37] Market Data and Key Metrics Changes - The overall economy continued to expand, with many customers investing in their businesses and hiring more staff [10] - Premium rates remained competitive, with upward pressure noted in certain lines such as coastal property and commercial auto, while workers' compensation rates were generally down [11][12] Company Strategy and Development Direction - The company aims to reach $4 billion in revenue by hiring or acquiring around 10,000 more teammates [52] - Management emphasized a balanced approach to organic growth and margin expansion for long-term value creation [53] - The company is cautious about potential economic slowdowns and their impact on business [50] Management's Comments on Operating Environment and Future Outlook - Management believes there is a lot of capital in the market, which may mitigate rate pressures despite discussions of potential increases [50] - The company is focused on investing in high-quality talent and technology to enhance capabilities [56][58] - Management expects to maintain a cash flow conversion ratio over 20% for the full year [45] Other Important Information - The company completed eight transactions during the quarter, contributing approximately $36 million in annualized revenues [9] - Cash flow from operations was significantly lower at $5.4 million compared to $79.5 million in Q1 2018, attributed to timing issues [43][45] Q&A Session Summary Question: Insights on margin trends and potential inflection points - Management indicated that margins are influenced by operational efficiency and acquisitions, suggesting a belief in an inflection point for margins [55][59] Question: Details on workers' compensation and general liability trends - Management noted ongoing pressure in workers' compensation but indicated that general liability profitability varies by account type [62][63] Question: Impact of reinsurance rates on business - Management clarified that increases in reinsurance rates do not directly translate to primary carrier pricing changes [68][70] Question: Outlook for contingent commissions - Management expects contingent commissions to decline in National Programs but grow in Retail due to acquisition activity [47][113] Question: Future tax rate expectations - Management projected a long-term effective tax rate in the range of 25% to 27% [74] Question: Hiring strategy and margin implications - Management discussed the potential for hiring high-quality talent and its impact on margins, emphasizing long-term benefits [56][80]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 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) (State or other jurisdiction of incorporation ...