Brown & Brown(US:BRO)2025-02-12 22:37Financial Performance - The Company reported total revenues of $4,703 million in 2024, up from $4,199 million in 2023, representing a year-over-year increase of approximately 12% [21]. - In 2024, the Retail segment generated $2,720 million in commissions, accounting for 57.8% of total commissions, while the Programs segment contributed $1,375 million (29.2%) and the Wholesale Brokerage segment $610 million (13.0%) [21]. - International operations generated $665 million in revenues in 2024, compared to $527 million in 2023 and $240 million in 2022, indicating significant growth in foreign markets [21]. Workforce and Employment - As of December 31, 2024, the Retail segment employed 10,962 employees, while the Programs segment had 3,986 employees, reflecting the Company's workforce size [25][26]. - As of December 31, 2024, the Wholesale Brokerage segment employed 2,026 employees and operates in 24 states plus Belgium, Hong Kong, Italy, and the United Kingdom [31]. - Brown & Brown expanded its team by nearly 1,000 teammates through 32 acquisitions in 2024 [45]. - Approximately 56% of U.S. teammates own stock in the company, fostering an ownership culture [42]. - In 2024, 94% of teammates rated Brown & Brown a Great Place to Work® [47]. Customer Relationships - The Retail segment's largest customer accounted for only 0.7% of its total commissions and fees, demonstrating a diversified customer base [24]. - The Programs segment's largest customer represented approximately 12.7% of its total commissions and fees, highlighting key client relationships [26]. - The Company emphasizes the importance of maintaining relationships with insurance carriers, as changes could impact market share and commissions [13]. Strategic Initiatives - The Company is focused on expanding its market presence and enhancing its service offerings through strategic acquisitions and partnerships [13]. - The company has been involved in business development strategies, product expansion, and acquisitions since 2003, indicating a focus on growth and market expansion [72]. Health and Safety - There were no work-related fatalities and 17 injuries or occupational diseases reported in 2024 [60]. - The company emphasizes holistic well-being, providing access to mental health resources and support services for teammates [51]. - The company has a commitment to diversity, with 11 Teammate Resource Groups established to support various identities [49]. Benefits and Compensation - The company offers comprehensive benefits, including medical, dental, disability, life insurance, and 401(k) plans, with no widespread layoffs or pay cuts in 2024 [46]. - The company is piloting a caregiving services program, with a global rollout anticipated in 2026 if successful [54]. Financial Liabilities and Risks - As of December 31, 2024, the company had $1,006 million outstanding under the Second Amended and Restated Credit Agreement and the Loan Agreement tied to the Secured Overnight Financing Rate (SOFR) [291]. - The company is subject to interest rate risk due to its floating interest rate agreements, but a 10% change in interest rates would not have a material effect on the financial statements [291]. - The fair value of the company's invested assets at December 31, 2024, approximated their carrying values due to their short-term duration, indicating minimal market risk [289]. - The company does not actively invest or trade in equity securities and generally disposes of any equity securities received from acquisitions shortly after the acquisition date [290]. - Estimated earn-out payables for acquisitions not denominated in U.S. dollars include $167 million, with five acquisitions having no maximum potential earn-out amount [293]. - The company has a current liability of approximately $43 million for a dividend of $0.1500 per share approved on January 22, 2025, to be paid on February 12, 2025 [293]. - Approximately $90 million is reflected in accounts payable related to federal income tax payments due to Hurricane Milton tax relief, with payments due by May 1, 2025 [293]. - The company is exposed to translational exchange rate risk with operations in British pounds, Canadian dollars, and euros, but a 10% hypothetical change in foreign currency exchange rates would not materially affect the financial statements [292]. - The majority of international operations do not have material transactions in currencies other than their functional currency, limiting transactional currency rate risk [292].