Q3 2024 Brown & Brown Inc Earnings Call Transcript
Key Points
- Brown & Brown Inc (BRO) reported strong financial performance with nearly $1.2 billion in revenue, marking an 11% total growth and 9.5% organic growth over the third quarter of 2023.
- The company's adjusted EBIT margin improved by 30 basis points to 34.9%, and adjusted earnings per share grew by 12.3% to $0.91.
- The programs segment delivered outstanding results with organic growth of 22.8%, driven by new business and expansion of existing customers.
- Brown & Brown Inc (BRO) completed four acquisitions with estimated annual revenues of $8 million, indicating a robust M&A strategy.
- The company has a strong cash generation, with over $810 million generated in the first nine months, increasing the cash flow from operations as a percentage of revenue to 22.4%.
- The retail segment experienced a slowdown with organic growth of only 3.9%, impacted by moderating rates and lower growth in exposure units.
- Incentive commissions and non-recurring revenue negatively impacted the retail segment's organic growth by over 100 basis points.
- There is ongoing pressure on contingent commissions in the retail segment due to higher loss ratios, particularly in the auto lines.
- The wholesale brokerage segment faced challenges due to a decline in catastrophe property rates, affecting the pace of growth.
- The company anticipates potential impacts from hurricanes Helene and Milton, which could affect future financial results, particularly in contingent commissions.
Good morning and welcome to the Brown and Brown Inc third quarter earnings call. Today's call is being recorded. Please note that certain information discussed during this call, including information contained in the slide presentation posted in connection with this call and included and including answers given in response to your questions may relate to future results and events or otherwise.
Before looking at nature, such statement reflects our current views with respect to the future events including those relating to the company's anticipated financial results for the third quarter and are intended to fall within the safe harbor provisions of the securities laws.
Actual results or events in the future are subject to risk to a certain subject to a number of risks and uncertainties and may differ materially from those currently anticipated desired or referenced in any forward-looking statements made as such as a result of a number of factors, such factors in the company's determination as it finalizes its financial results for the third quarter, that its financial results differ from
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