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 | --- | --- | --- | |---------------------------------------------------------|------------------------------------ ...

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 ...