Brown & Brown(US:BRO)2026-02-11 23:03Financial Performance - Total commissions and fees for 2025 reached $5,763 million, a 22.5% increase from $4,705 million in 2024[18] - The Retail segment generated $3,386 million in commissions, accounting for 58.7% of total commissions in 2025, compared to 57.8% in 2024[18] - The Specialty Distribution segment reported $2,379 million in commissions, representing 41.3% of total commissions in 2025, up from 42.2% in 2024[18] - International operations generated $843 million in revenues for 2025, a 26.8% increase from $665 million in 2024[18] Business Operations - The company operates in 468 domestic locations across 47 states and 246 international locations[16] - The company has realigned its business segments from three to two, consolidating Programs and Wholesale Brokerage into a new Specialty Distribution segment[15] - The Specialty Distribution segment includes programs, wholesale brokerage, and specialty businesses, providing niche solutions for complex risks[23] Workforce and Culture - The Retail segment employed 14,531 employees as of December 31, 2025, supporting a broad range of insurance products and services[22] - As of December 31, 2025, the Specialty Distribution segment employed 7,905 employees across multiple countries including the United States, Belgium, and the United Kingdom[32] - In 2025, the company expanded its team by nearly 5,794 teammates through 43 acquisitions, indicating a strong growth strategy[47] - The company reported no widespread layoffs or pay cuts in 2025, demonstrating stability in its workforce amid external economic factors[48] - In 2025, 92% of teammates rated the company as a Great Place to Work®, marking the seventh consecutive year of certification[49] - The company has 13 Teammate Resource Groups (TRGs) aimed at promoting diversity and inclusion within the workforce[52] - In 2025, there were no work-related fatalities and only 39 injuries or occupational diseases reported, reflecting a commitment to workplace safety[61] - Over 60% of U.S. teammates participate in the Teammate Stock Purchase Plan (TSPP), fostering an ownership culture[44] - The company emphasizes holistic well-being, providing access to mental health resources and promoting a healthy work-life balance[55] - The company operates under a meritocracy, providing growth opportunities based on performance and initiative[42] Market and Investment Risks - The insurance intermediary business is highly competitive, with numerous firms competing based on innovation, service quality, and pricing[33] - As of December 31, 2025, the company had $632 million outstanding under the Second Amended and Restated Credit Agreement and the Loan Agreement tied to the Secured Overnight Financing Rate (SOFR) [328] - The fair value of the company's invested assets at December 31, 2025, approximated their carrying values due to their short-term duration, indicating minimal market risk [326] - The company does not actively invest or trade in equity securities and generally disposes of any equity securities received shortly after acquisitions [327] - An immediate hypothetical 10% change in interest rates would not have a material effect on the company's Consolidated Financial Statements [328] - The majority of the company's international operations do not have material transactions in currencies other than their functional currency, reducing exposure to transactional currency rate risk [329] - The company is subject to translation exchange rate risk due to 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 [329] - Market risk is defined as the potential loss from adverse changes in market rates and prices, including interest rates and foreign exchange rates [325] - The company’s investments include cash equivalents, marketable debt securities, and U.S. treasury securities, which are subject to interest rate risk [326] Strategic Growth - The acquisition of RSC Topco, Inc. is expected to enhance the company's growth strategy, although risks related to integration and financing exist[15] - The company has a history of strategic acquisitions, with J. Scott Penny serving as chief acquisitions officer since 2011 [73] - The company has been involved in business development strategies, product expansion, and acquisitions since Chris L. Walker joined in 2003 [74]