Brown & Brown Q4’22 conference call

Brown & Brown hosted its Q4 2022 earnings call on Jan 24, 2023. The highlights:

• Size: 15,000 teammates
• Delivered $900 million of revenue, growing 22% in total and 7.8% organically (quarter)
• Delivered over $3.5 billion of revenue, growing 17% in total and 8% organically (annual)
• Increased international capabilities with the acquisition of Global Risk Partners and BdB in the UK
• Completed 9 acquisitions during the quarter with annual revenues of approximately $17 million
• Completed 30 acquisitions with approximately $435 million of annual revenue (annual)
• Admitted market rate increases were similar to prior quarters and were up 3% to 7% across most lines with the outlier being workers’ compensation rates, which remained down 1% to 3%
• The placement of professional liability and excess liability remained competitive with rates down 5% to up 5% and with public company D&O rates down 5% to down 20% or more
• Cyber rates and deductibles continue to increase with slight moderation during the quarter
• [Retail segment] Delivered organic growth of 2.7% with good growth experienced in most lines of business
• [Retail segment] Organic growth was impacted by the slowdown in specialty lines due to lower auto and RV sales as well as slower growth in a couple of of employee benefits businesses due to an extremely tough comparable versus the fourth quarter in the prior year
• [National Programs segment] Delivered adjusted total revenue growth of 34.1% driven by organic revenue growth of 21.9%, acquisition activity and higher contingent commissions
• [Wholesale Brokerage segment] Delivered adjusted total revenue growth of 17.1%, driven by recent acquisitions, good organic revenue growth of 8.1% and an increase in contingent commissions
• In 2022, Brown & Brown recognized approximately $25 million of incremental revenue with about $5 million driven by the acquisition of Orchid Insurance
• In 2023, Brown & Brown anticipates revenues of approximately $30 million to $35 million
• Finished the year with $650 million of available cash
• The word “technology” was heard once