Financial Data and Key Metrics Changes - For Q4 2025, total revenue grew 13% to $751 million, with organic growth of 6.6% and M&A contributing over five percentage points to the top line [31] - Full year 2025 revenues surpassed $3 billion, up 21% year-over-year, driven by organic growth of 10.1% and significant contributions from M&A [4][32] - Adjusted EBITDA for 2025 grew 19.2% to $967 million, with an adjusted EBITDA margin of 31.7%, slightly down from 32.2% in the prior year [4][32] - Adjusted earnings per share increased by 9.5% to $1.96 [4][32] Business Line Data and Key Metrics Changes - The property business experienced a modest decline, particularly in Q4 where pricing dropped by 25%-35% on large accounts [16][17] - The casualty practice had a strong year, with significant price increases in high-hazard lines exceeding 10% [18] - Delegated authority revenue doubled over the last two years to $1.4 billion, now representing 47% of total revenue [8] Market Data and Key Metrics Changes - The insurance market is currently experiencing significant volatility, with rapid shifts in pricing and market sentiment [6][7] - The company noted a trend of admitted carriers re-entering certain segments, particularly on smaller accounts, but this has not significantly impacted overall rates [25] - The construction segment remains strong, although macroeconomic pressures have delayed project timelines [53][56] Company Strategy and Development Direction - The company is launching Project Empower, a three-year restructuring program aimed at improving efficiency and creating headroom for additional investment [10][36] - A $300 million share repurchase program has been authorized, reflecting confidence in the company's valuation and long-term outlook [12][34] - The focus remains on strategic investments in growth, talent acquisition, and innovation, particularly in AI and technology [29][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in property despite near-term pricing pressures, citing factors like increased demand for E&S solutions [17] - The company anticipates high single-digit organic revenue growth for 2026, reflecting current market conditions and continued property pricing pressures [37] - Management emphasized the importance of maintaining strong relationships with clients and adapting to market changes to capture new business opportunities [49] Other Important Information - The company completed five acquisitions in 2025, contributing to a diversified platform with over 300 products [9][25] - The adjusted effective tax rate was 26% for both the quarter and the full year, with expectations for a similar rate in 2026 [33] Q&A Session Summary Question: Can you elaborate on the organic growth guidance for 2026? - Management noted that property pricing declines are expected to continue, impacting overall growth expectations, which are now set at high single digits for 2026 [41][43] Question: How does the company view AI's impact on the brokerage sector? - Management views AI as an ally that will enhance efficiency and client service, emphasizing the importance of relationships and expertise over technology alone [48][50] Question: What is the outlook for the construction segment? - The construction segment remains strong, with a robust pipeline, although macroeconomic pressures have caused delays in project timelines [52][56] Question: How does the share repurchase program fit into the company's M&A strategy? - Management clarified that the share repurchase program does not diminish the commitment to M&A, which remains a top priority for capital allocation [59][60] Question: What are the expectations for client demand in the current environment? - Management indicated that while there are no measurable trends of clients buying less coverage, the structure of demands is changing, with higher retention levels in certain accounts [62][63]