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    Brown & Brown Inc (BRO)

    Q4 2024 Earnings Summary

    Reported on Feb 7, 2025 (After Market Close)
    Pre-Earnings Price$105.02Last close (Jan 28, 2025)
    Post-Earnings Price$104.29Open (Jan 29, 2025)
    Price Change
    $-0.73(-0.70%)
    MetricPeriodPrevious GuidanceCurrent GuidanceChange

    Retail Division Organic Revenue Growth

    Q1 2025

    no prior guidance

    ~100 bps lower than other quarters

    no prior guidance

    Quintes Acquisition Revenue Phasing

    Q1 2025

    no prior guidance

    ~60% of annual revenues recognized in Q1 2025

    no prior guidance

    Contingent Commissions

    FY 2025

    no prior guidance

    down slightly vs. FY 2024

    no prior guidance

    Adjusted EBITDAC Margins

    FY 2025

    no prior guidance

    relatively flat

    no prior guidance

    Effective Tax Rate

    FY 2025

    no prior guidance

    24%–25%

    no prior guidance

    Interest Expense

    FY 2025

    no prior guidance

    $170M–$180M

    no prior guidance

    Interest Income

    FY 2025

    no prior guidance

    $65M–$70M

    no prior guidance

    TopicPrevious MentionsCurrent PeriodTrend

    Organic growth and net new business

    Q1–Q3 2024 calls consistently highlight strong organic growth and net new business, with recognized seasonal and market-driven moderation later in the year.

    Q4 2024: Strong overall growth (22.4% organic), with Retail (4.4%), Wholesale (7.1%), and Programs (38.6%). Momentum remains high despite some timing impacts in Retail.

    Consistent theme, sentiment now balanced between optimism and caution about possible slower growth.

    M&A (acquisitions)

    Q1–Q3 2024 calls describe a disciplined approach, strong capital position, and eagerness to pursue culturally aligned targets.

    Q4 2024: Emphasis on a robust pipeline, preparedness for larger deals, and completing $174M of annual revenue acquisitions (e.g., Quintes).

    Consistent focus, evolving to readiness for bigger transactions.

    Property and casualty rate environments

    Q1–Q3 2024 calls frequently mention rate moderations for CAT property, ongoing casualty pressure, and expansion opportunities in E&S.

    Q4 2024: CAT property rates down 10–20%, casualty lines still seeing rate increases, and a net inflow into E&S markets.

    Recurring discussion, with some lines decreasing while others rise; E&S continues to be a major growth area.

    Contingent commissions

    Q1–Q3 2024 calls highlight a one-time Q1 benefit and then persistent downward pressure in later quarters.

    Q4 2024: Ongoing pressure due to loss development (e.g., California) and storm claims; caution for 2025 contingents.

    Shift from one-time boost to sustained pressure in the second half of the year.

    The Programs segment

    Q1–Q3 2024 calls describe robust growth in Programs, supported by flood claims processing and strong underwriting results; mention potential storm-related margin impact.

    Q4 2024: Outstanding 38.6% organic growth; margin expansion but facing contingent and rate headwinds into 2025.

    From strong early-year performance to potential margin headwinds looking ahead.

    Dealer services

    Mentioned positively in Q1 2024 due to improved inventory levels and stable demand. No further references in Q2 or Q3.

    Q4 2024: No mention of this topic.

    No longer discussed after Q1.

    Storm claim activity

    Q1–Q3 2024 calls flagged storms for potential Q3–Q4 impacts. Actual events (Hurricanes Helene and Milton) brought both revenue and claim costs in Q3–Q4.

    Q4 2024: Flood claims revenue (~$28M) recognized, expected to drop in 2025; still a variable for contingents and property lines.

    Remains relevant, but revenues mostly realized and projected to diminish in 2025.

    Flat or changing EBITDAC margin guidance

    Q1–Q3 2024 calls initially projected margin improvements (50–100 bps), then noted potential storm and contingent impacts later.

    Q4 2024: Company now expects adjusted EBITDAC margins to be relatively flat in 2025, given contingents, flood revenue decline, and ongoing investments.

    Guidance shifted from earlier improvement forecasts to a flat outlook for the coming year.

    Topics with significant future impact

    Mentioned throughout Q1–Q3 2024 as key levers for long-term expansion and competitive differentiation.

    Q4 2024: Highlighted growth opportunities in E&S, readiness for strategic M&A, and ongoing rate shifts (CAT down, casualty up).

    Continued emphasis, shaping investment strategy and market positioning moving forward.