BRP - Earnings call transcript Q2 2020 | The Baldwin Insurance Group, Inc.

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Operator

Greetings, and welcome to the BRP Group, Inc.

Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Austin Rock, Director of Strategy & Partnerships. you. Thank

begin. may You

Austin Rock

also and our By presentation, earnings to website which released operator, Relations the have of portion which everyone access prior our may and call to announcement baldwinriskpartners.com. this found good you, on now, Investor afternoon. at should was be Thank and slide

These this our management may performance, filed remarks, of uncertainties subject expectations, our with which statements. factors are statements, results more risks, not filings are on in the not assumptions, or our all assumptions, Before pandemic by future various COVID-XX on reliance that We these the and everyone part should recent condition or the discussion will the any XX-Q BRP and social difficult of Group, disruptions, contraction earnings preventative uncertainties statements statements business On be the forward-looking both differ except disclaim we and could and including update placed shutdowns, related risks, formal begin undue any supplement and detailed you economic referencing forward-looking refer implied measures. most to the intentions The our today. of include that including and future the effects or business, we distancing to references by travel and business our in within upon or them. required announcement developments expressed earnings as projections the on and to of discussion COVID-XX-related stay-at-home government COVID-XX are applicable estimates operating other of remind obligations be We posted refer forward-looking comparable condition effects A I our to financial of discussion guarantees financial today today include restrictions, to our factors orders, slide to of closures, SEC, reconciliation pandemic. today law. therefore, measures from non-GAAP and Also, results and results our measures, ir.baldwinriskpartners.com, statements, are cause the to the found certain website could our other those generally extent those actual of materially operations. filings. to which our call, related presentation, GAAP predict for to impact at SEC to of measure a of forward-looking and Form that other of potential or revise COVID-XX in the discussion can based

is available Chief Baldwin, the will archived webcast call addition, I on our will Executive BRP website. of that, of now Officer an this and version call With Group. be call to the hand being Relations In after Investor the portion Trevor

Trevor Baldwin

XXXX you second to in Group. Austin, quarter everyone. good our are Thanks, us afternoon, Welcome the call. and appreciate time taking your to BRP interest join We earnings and

Chief Financial outlook today's for review During some brief regarding wrap then Kris QX few quick Wiebeck, on more a comments Officer, of will provide our with quarter. will Accounting our results expectations the our our a recent provide Officer, during balance Hale, highlights Brad our accomplishments sheet call, the detailed Chief and our and I on future. up will

company questions. will broader consider have we To QX and you as when the quarter potentially then up line had landscape. the open for and was simply, best economic We public the start said ever off a

first Future operating evolving we growth, to quarter of momentum MGA a growth the of XX%, industry-leading environment. marking our accelerating year-over-year For highlighting included our revenue these time of growth commitment clients continue our results the which business, engagement quarter, and Notably, go-to-market in figure. could and of nimbly have organic organic recorded of the be XX% growth see strategies our grew incredible in unwavering XX% revenue their across challenging support proud time. is and to this differentiated and value revenue during the colleagues our our our adapt We challenging accomplished another quarter I total rapidly ability business, now without whom for in and we not more not of the to and could of

the two of call at additions announcement annualized Including stands partnerships year-to-date adding of that revenue including we execute partners representing July, in $XX on early Group completed in covered revenues. front, partnership million successfully million, in our announced new On generated previously new on total our we Middle strategy, continued significant $XX annualized our June. to XX our partnerships over five Market that

in pipeline is terms growth highly and unique that we deliver industry-leading our well allows to future. partnership that the company's size been has firms the and will of current being on quality feel facilitate selective history. additive ahead, of believe expertise the laser and This firms our us number, organic goal the to we Looking it with continue focused in into talent, and best help double-digit opportunities, confident

we integral Regarding over remained of thrilled we thrive to of the elite recently announcement is a investing new Fortune list be to to results and XXX hiring Erin Officer. people we Chief where colleague COVID-XX, This our performing and so years support Resources was plan creating company Publix, July, from to few our tougher on the we Human XXXX, development but road results. to economic of walked Colleague Director. note of evidenced Work QX resilient in the an For our an and culmination One Publix well sensible call our and the an to well-positioned of go-to-market continue over is our go quarter's is validation to by of firm results, this XXX made the do serve thoughtful companies about and is She's turn Companies front Brad I final partnership in us Best a list colleague since on has Brad served awarded building our fantastic early inception strategies, our are the and a on joins vision forward. Distinction to business infrastructure, Taking our we've that going the are evolve, she think nurturing. environment efforts. conditions. exceptionally clients. since -- echo to XX turn building. more strategy, just years call first award's client situation QX as welcome Erin King step to continues we Erin as back, been With in our to our I'll Fortune a And the business to consecutive to could inception most as and believe an that aligned that, before in into elite detail

Brad Hale

call. on everyone Trevor good Thanks, to and afternoon the

contributions For organic growth second $XX.X with growth growth, revenue XX% combined our model, quarter, growth new was the by partnerships. to The million. generated again namely of driven hybrid we from revenue once

for onboarded Our organic year. of April quarter MGA revenue on which X the time platform, XX% of of includes growth last the we for Future first the our

January our This regulatory Given that revenue growth XXXX XXXX. an important on ongoing more on apples-to-apples as been partnerships if we forma our are comparison per a an unaudited metrics portion investors X, partnerships had filings with acquired provides basis. our strategy, provide also of in

historical be EBITDA ongoing the Recall, for Adjusted release of to the SEC. second our levels, the XXXX year nor akin would had pro quarter as be forma being on was XXXX table been for for found XXXX business per was that adjusted share. second and be amortization, the second reconciling and of filed relied $X.X in to partnerships our quarter recognition to quarter quarter we net rose that future. adjusted XX% million. quarters. Adjusted that excludes compared the on results XXXX for Adjusted the information forma the Unaudited net of obtained share. seasonality our be investment. XX% quarter income pro given XXXX. fully Three was we quarter second over diluted quarter upon think income compensation, unaudited or quarter year. had revenue to margin to may our the that up should of diluted $X.XX million million XXXX XX% for $X.X in the of indicative results our from in the other if GAAP of have timing about EBITDA $X.X to and over can margin as things $XX.X revenue prior noted date not call loss the million, A second period occurred prior second of income and have the GAAP pandemic For second EBITDA obtained the which fourth we the the $X.XX per prior was the XX% earnings one-time next expected share-based fully to note, our XX-Q few net expenses, XXXX, with or net

in are being the of First, mentioned the we've as seasonal lower half while the quarter, nature, margins past, with adjusted in QX in year. the usually our margins record we second strongest EBITDA

Second, businesses year. closed statement those we as reflect -- we those website, if have forma updated since supplement on pro the IR we beginning quarter to the do quarter, we of the second every our partnerships as own earning parts available the in financial quarterly in the the

To on see firms, we increase year-to-date added released and a additional by significant June driven of provide have earning regarding will what our aggregate predominantly announced to we partnerships supplement clarity this the versus last two partner we revenue is a Rosenthal You the which also presented some we on QX completed seasonality TBA/RBA. of line disclosure afternoon. page quarter, XX in deals the new X, earlier

forma not the performance. are pro we As of reminder, a future financials present projections

anticipate been. revenue, mentioned, as exclusively future Lastly, is in closings a fourth quarter. strong we ever to related as to timing partnership the pipeline our From as standpoint Trevor almost currently acquired it's be deal

the exact are partnerships timing to a As reminder, change. subject of

our four provided investor found our supplement won't go past, operating we our all earning website. As our in detail MGA the can spend that quarter, individual segments results given prior relations growing want continued momentum the MGA the the prepared We into year for a segments period. on continued in in remarks. outperform The have to the in in be Future compared on did to But in the platform, to of XX% moment business.

XX,XXX During increased force XX, nearly XXXX. March by quarter, the from in policies

mentioned, cases, a be specific analysts helpful incremental more it on renter's to months, highlights few no been their with limited thought costs. may we continue insurance BRP MGA we technology MGA growth. will within to significantly we of across products distributed remained our deploying and focused the have extremely as can the to entire previously contribute past organic scalable many in have as in sustainable that Also the few highly and customer double-digit our platform a space, over investors on revenue focused new goal be and efficient And acquisition provide expect number We of business.

XXX,XXX force While with we climbed XX over our August accelerate. single On XXX,XXX to XX, had new policies. as X,XXX ended the date policies quarter to in as policies, business largest ever new we selling June continues of momentum

than However, we that The better policies. Friday, XX% industry XXst of includes materially the July best of is and now Future which on day ever. business products. home our we XX business average when of is colleagues, growing largest Despite XX only on rollout Eclipse and ratios what X,XXX the As insurance July loss MGA our focused of this July then new year. traditionally XX, colleagues quickly, again sold of we currently Our approximately employed on of the July the to just the flood is day believe full-time the third continue XX, maintain

gives As industry-leading Insur Tech the those such, of comparing favorably arena over which a and one and ratio us in policies, incumbents to force policies to in and testament believe little we a efficiency for both of XX,XXX a the XXX,XXX is the colleague technology. our every quality industry

in our few total growth. our the Lastly, million have units distribution continued our XX on our is amongst a million approximately across units renters third and in of penetrating around for said current the the current past runway footprint, a U.S. XX footprint partners, that we rental stats success We which

approximately units on ago. turned within million a X, X.X X.X As that renter versus year represent XXXX of buildings our was million July units solution

still So, also a units XX good buildings, we but working before considering capturing a our is additional solution job solution tied set standpoint, distribution higher future with buildings, of this in very in the our ample to we've million partners. is even in And a partners' space have to percentage the better in From footprint. doing which opportunity are of available. renters of penetration running our make been solution terms distribution having on success available in within of current our partners turning all distribution more their

X.X%. As units a solution was was penetration of our penetration million Among same which an X.X%. year today, million at our example, available in our stands X.X X.X ago, those the units

in we about in With units call our we Kris. turn MGA our runway new network. good the So, turn partners continue will the to feel partner summary, us on penetration to amongst footprint, of existing increase of the over distribution I ahead in now that, add Future, the as and distribution

Kris Wiebeck

afternoon we remarks few before to good call. Q&A. A closing and Brad Thanks, on everyone hit the

maintaining low million During size changes facility XXX no to total multiple to in took a our and or group our our the our XXX the -- expanding business, which and upsized adverse people us credit terms duration, of our to continue cost we revolving with we by our capital. importantly new to of million, quarter, June, bank In positioned balance partners. steps bolster us growth investing sheet, of positions

$XXX balance as today pipeline which is sheet We follow-on ever which onto capitalize leverage also as that Trevor slightly capital outset, mentioned X, to it's on that the equity offering, brought us been. the positions at -- new our on over we and one believe million the the partnership via new leaves good of

past, in rate situation four three comfortable continue run around X.X business. leverage the believe that As is prudent the warranted. to taking and a be if to our half we'd we've And to we said up opportunistically for a X

year we ahead, impacted into by for continue broader move the of to balance we XXXX. the this As COVID-XX be will economy expect and

technology, strategy evident our be in continues of resiliency people. our tools, to our to business to growth our commitment, performance. in Thanks model and and our the our investing However,

we forward, we will, In macro as open low in as continue but going up such, have never environment. and been call today, our ever time, in stand our pipeline. in we confident We're and As bullish confident generate your the we this with happy of Q&A. the you still closely durability as in results. to thank feel very quarter more monitor Operator? now organic obviously, growth here quality, for partnership ability closing, double-digit With I that, environment, And we business. we'll the to our growth are second the for

Operator

you. Thank

Instructions] We Raymond Our will is Peters now be the conducting Greg Please your from question. [Operator question question-and-answer of with first of line James. session. the come proceed

Greg Peters

in perspective product. the the with around Medicare go provided your a concern back of apartment four Group. bunch start your about guess, been particular I'd And a persistency BRP of the customers all I and just of in it's like maybe issue us afternoon, of Good to companies Brad in to talk segments. of And other commentary the in I to renters know, business. from an

some can holding you is persistency up. give maybe us So, how perspective your

Trevor Baldwin

Hey, Yeah. you're This doing is afternoon. Greg. well Trevor. this Hope

months of in past have few at period. to we're believe look And communities into think and feel that very our to at client. over we we persistency engaging our the change to believe business, low-XXs. COVID Middle to segment, to relationship and where as So, we any business, we Market approach about, look enables they bring material build market in not that our the in seen comfortable, that us we our clients, our strong our going with Medicare where solutions a most through the When

plan trusted that accept, decide, other reach us as that provide be ultimately, that their they providers advice change advisor, be back network available. plans to what may change their to of one out relationship so, they plans And options enables turn that come they on or may the in and their

policy retention on to more more maybe we believe that product, of And -- that in is us center go-to-market overseeing internet through MGA unit call the what persistency the middle those because favorable of our not to basis what styles. more the distributing the would business, software deliver many really client sales driven that's building, focused focused peers, approach traditional and a or get the than is renters Future rate our are or certainly of a are homeowners property of that what a So, we're ultimately, enables the But particular, providers, is on buildings. and holder in you management kind see tied market more segment. we in persistency on

peer while product, relative we we're end renter solutions and the moving we above so, next renter our not retaining is, focused And one believe may renter average. obtaining that that haven't retention to necessarily out our retention up around on coming is into we are what And that's But disclosed specifics unit? rate. overall that

Greg Peters

the business. And Mainstreet

Trevor Baldwin

Yeah. XXs The high low XXs see Mainstreet to retention. business, overall we

Kris Wiebeck

at you as penetration XX. on how buildings in, add would XX renters of that look in persistency the we on June what probably Brad year-over-year, if kind at the active to where I Greg, increased we And June -- were look commented our

of the think And from see we business. so, And exciting more that's to that's kind it. how about

Greg Peters

cash in be of the with cash sticking the some years on acquisitions other they're persistency up order match painfully high these your maybe If in reality land Because models, and positive. you're a with flow for in second. of costs need that the you actually just to promised of it's really get guess, the generating? I can renters clear couple for revenue to how them a flow negative to comment for become

and on and So, business can just relates cash your you just acquisition comment flow perhaps model costs. to

Trevor Baldwin

a That's Greg. great question,

the flow day cash positive we a So, it's for bind renter's us. policy,

cash profit. flow. business business why three as has and Future manner is a stream bound, built of a soon has of years that And healthy that's on the profitable as that a been policy over that costs in have we acquisition Our such, growing for made is now as MGA the

Greg Peters

part The know you you you How's Future. -- progress about front? the Then Rosenthal when going? talked in the in about are on the talked the doing with MGA how sticking acquisition, I revenue just of synergies how's that through -- integration the renters.

Trevor Baldwin

Yeah.

team So, we've between team. a MGA of and calls the couple the the Future Rosenthal held strategy of

kind and in and XX really really successfully a onboarding really our enable consistent manner culture. accelerated days and our on welcoming help we partnership and with that is deploying focused go-to-market really first tools of then are capabilities new a colleagues The -- to growth. our new focused on is we get who And

that's that's we So, Future. rolling cross some in opportunities the revenue of see traction. of quarters and take really I'd a kind to probably beginning process to sell of a stages MGA few And before we're begin out between real them say the those the going

Greg Peters

Got One you had it. question. Thanks I flow in payables the statement. -- for those numbers what noticed there? cash increase answers. was on going that an last talk Can about you a

Brad Hale

is This just for of function premium was thanks. Brad. for effective, -- just Greg, quarter. the a a Yeah. lot July It's a which it's payments timing -- building of a thing advanced of

Greg Peters

Got it. Thanks answers. for your

Trevor Baldwin

Yeah. Thanks, Greg.

Operator

Thank you.

Fargo. Our line Elyse your the proceed next Please is question Wells Greenspan with from come with questions. of

Elyse Greenspan

Good on evening. to Thanks. Hi. deal first pipeline. color get was hopefully more My the question

of So, that. related I guess a couple questions to

about I towards the tilted $XXX July. in at the think of quarter. fourth I whether the tying quarter, guys then had of And deals debt paydown you right? to And you you made just in more are the then $XXX some million wanted QX? understand closing they million comments had that, into end

just we to that hand you the might questions deal leverage then immediately? trying tie So, the And together just those related for up deals the materialized, off was see the as would that see on deals still have to -- paydown tick have what activity. to happened fact cash due

Kris Wiebeck

is I'll the kind Hey, hitting. backwards. the second, probably To them Kris. Elyse. Absolutely. of pipeline seeing where It's take

it's said, we had. the pipeline ever we've As best

going down in that in gives it's execute paid to million a basically power It's more stuff QX. to we buying line, the And line. of this on XXX so, close knowing probably revolving QX,

closed that's we treasury will be reasons something purely happens the we're like done as said some incrementally. would it pipeline it's things in kind There's why tens subject small dollars down. December, -- you as closings the we down in change, a And we of those similar We again, paid that, to comments, last look lot of provide of depending Brad pipelines hundreds so, happen, was Again, if we've management just are things a a on some always the but in terms strongest, thousands why may in say with to where folks And what trying couple of we of QX, stuffed QX. feel of the want to majority when to had in the best to election ever little guidance. QX. get the but had. And remember,

things people revenue that We from lay that said, also did may to as what year-to-date. easily investor try standpoint, that we acquired I'd supplement. closed plan have the point, historically As with all out in out hit. phasing may can point closed revenue the on so to try happened And we'd Brad that a year-to-date. take when On see more you how

Elyse Greenspan

continuing that like be can helpful. deals just of give size you us in you deals, the deals And to of you about right, quarter? could larger you of close fourth on, would and That's of How smaller potentially pipeline just for there what just a in number see the Maybe give to revenue? terms what then size the Okay. don't think pipeline, and want sense, like in the a deals. too of specific, the sense but us

Trevor Baldwin

been across Trevor. were dialogue and in the pipeline dialogue quality meaningful U.S. partnership overall of This we in with independent represent the organization is highest firms of organizations, a with What the Elyse. and the Hey, frankly largest the is, that Yeah. opportunities the firms can of the -- our today history we've pipeline say remain largest collection among -- and

excited exceptionally are that in about the dialogue we're We organization with.

Elyse Greenspan

did remarks the there's there. year, typically out, some of then And are weak in in with investment on And seasonality in you obviously of helpful. a your margins right, back that guys opening half terms That's level Okay. point QX. in margins, the

will combined last about margins, compared be QX QX? So, year we should with, how investment or compared to helpful the brought and some QX how about on, to think margin? and to QX we either deals think So, should right, it QX that your you

Kris Wiebeck

A the what and forma decent take pro will that of we revenue. a phasing things, Yeah. is of I laid Elyse, one. see of XXX kind you'll couple out amount margins. And

You up end QX forma to million. revenue in we the hitting QX. $XX think of kind in all did up I took And pro way

we And in front of margin to made think important to year terms is to call where think be. they're a the in of off the are so, this that's going lean From Right? those be statement, kind the rest when market. pay going opportunity of of at and we few going a investing definitely investment into QX we big footed keep in already I looking right here, opportunities. We've and a seen off forward. to pay seeing

into we so, to make investments And continue QX.

would hold little take of many but investments won't probably is So, a from the on QX, be. a for just if back. to how standpoint, take I to back just we want it something is it we pro make, modeling we'll say don't bit farmer A a QX probably we margin probably place QX, good but want from margin

So, for now. I would steady say, hold it

Elyse Greenspan

Okay. And last me. one from then

If You nothing your your COVID It's one-time. pretty about other in growth feel from a of like for just out, good policies guys of some I some commentary It good really sounds run business. provided right, within rate MGA, you've good back year, -- XX% is were we also which quarter. the the back XX% to even given everything because still if related with was businesses. headwinds? there Mainstreet But that's reported figures on the -- the out it that within the like the does else, organic -- growth rest that just

Kris Wiebeck

we're and I I grow point said that's overall on to is points reset XX% the people going when in all We country time. better. want Yeah. XX run. Right? and at rethink plus look, We've XX% they're mean, down the business this with organic long MGA XX% think XX%, XX% the the don't to XX% -- GDP obviously, say, to

for QX in be you've of happens -- quarter terms heard For COVID I impact, on what brokers, to the depending itself, probably stimulus. low from with the think industry especially going it's the other

we good be. that now, was We going the to the lower just think XX% good fluid for to we you -- Obviously, where tell pointed given if we situation. still QX the kind the So, we interim but feel would a really I lower exceptionally going would in of that say feel of forward, for XX% looking on about side on we're you're to But think of as out, uncertainty. strong. double-digit kind side folks it's

Elyse Greenspan

Okay. Thank appreciate all I you. color. the

Trevor Baldwin

Thanks, Elyse.

Operator

you. Thank

next is of Meyer the Shields from question. comes your with Please Our KBW. proceed question line with

Meyer Shields

Thanks. guess, thinking I about talked lot you're on we same last pandemic, I and the well know question. quarter I in, I want a relatively of follow-up, to with doing the regions I'm how operating were Florida. know

in of down your were section footprint. to economic are the talk slowing month now. increases about sort was if they But progress in there wondering geographic Specifically I hopefully could you bit month a little

Trevor Baldwin

Trevor. Meyer. is This Hey, Yeah.

a few things. So,

impact And roughly and line impact we sits our business, X%. combined the roughly our in the it's As book in exposure sits commercial Middle the rate look at X%. at business, Market on July it of at the through side of --

kind think seeing about of relative you peers. of and as client then healthy pretty rate similar so, exposure, we're our to impact And the rates

it call single So, high digits.

so win think of as onboard fact And exposure new our clients the and that importantly, the the outgrew that, to and continue of function that for our meaningfully I meaningfully at and a rate it that exceeds We headcount. to was plus our impact that's tailwind ability would revenues, shrinkage rate combined about despite units But offset us. a to client that three call industry base, the kind is say and exposure relative what payrolls, of peers.

have trending that's on materially plus it's of I kind there activity thinking in in that came down. how a a April for lot past the is, future occurring. And dollars -- end of the about is up to specifics through as not make we're or few about of being QX hold sense that of it and the their more really plus and looks steady burn amount tougher kind months, tough economic so, Some could resizing we've potentially March the to out stimulus businesses what two three, moving that's like, that think businesses decisions seen some up QX as and

As we I look at on clients July, through about -- hospitality as been that that's have lodging our who the think revenue and example, about existing year-to-date, client and down base XX%. renewed impact been restaurant, an is what

so shrinkage, includes offset And but by the we're seeing. exposure that positive unit then rate

headwinds this needed we been investments pretty the the to platform, I of data look in back the impact. some in geographies we state and advisors about these quickly of up at we be really our environment. it meaningfully our really of QX, more new to the our of Future middle the Florida. another making just point, So, back that the as the were the of -- virtual think this -- kind And and over half And had the impacted we've performance, issued successful policies despite material we're with risk in pivot think MGA We're of as XX%. comes kind tools of equip to ability

up New state XX% in year-over-year. of the policies issued California. We're

out that that really, resiliency there. enabled tech think highlighting model distribution again, we've I of durability So, built and the

Meyer Shields

think. question, I No. I have Okay. Quick I'd That's for guess Kris. branded how really

revenues forma those helpful. Looking tremendously the pro unusual at of seasonality it's there partners has the with in companies? the year's expenses for slide this of anything said Is

Kris Wiebeck

mirror commission Only se. commission -- revenue. our our per obviously in Not that expenses

be But specifically expense on accruing to we'd the the higher, out nothing is revenue call commission commission side associated when So, expenses.

Trevor Baldwin

client and do you've be that you I admin would of operating our look such Meyer, are costs got our doesn't fixed revenue have base. meaningfully margin add. to expenses, as, seasonally this at kind the Trevor. high with because when business, payroll, higher, service that we fluctuate more tends revenues, certain When

seasonally periods those expect they're in So, those would see margin. better would to see in materially lower high, you margin. you expect low, they're to And seasonally periods,

Meyer Shields

Okay. helpful. question. final then That's And just

to thinking a little are touched into year. capital to the be? effect as You how on coming of just that next higher seems I'm sellers to gains sense trying get about a taxes change political but a this how And bit, material prospects or

Trevor Baldwin

a the become partner, why factor that's as something factor days, Meyer, XX probably get people wouldn't that it's decision been closer for is deciding up. a to started we past contributing to making are the I say coming election. a but Over particularly it's potentially it

And of -- kind only to pipeline have back the do for the really so, people something into reason flow we the and that I'm of XXXX half margin, wait. the deal to three a five if accelerate are years, potentially I'd look do at probably that saying, to amount rather the there's it's we okay, on probably than it's as in in of But next helpful going say, year.

Meyer Shields

Perfect.

Great. Okay. so much. Thanks

Trevor Baldwin

Yeah.

Operator

Thank you.

next with Pablo is JPMorgan. question the of question. Singzon come of from line Our your Please proceed

Pablo Singzon

growth Hi. Good dig a bit numbers. to on wanted more organic the segment afternoon. I

first my doing quarter? as there about XX% about driving Middle and just we Mainstreet math I'm bit bit. Was the quarter, correctly, if a like factors the wonder But seems organic. -- if has Medicare talk the same a good softness So, Market that talk pretty a I it that soft.

Trevor Baldwin

impacts Medicare communities business same clients the we're where in feel some Pablo, So, our that through contingent certainly And to that COVID with the we've to quarter. we environment our headwinds there they of then the as the was prove said second going places income serve we're -- in in serve headwind to get in to people front way. be most going Mainstreet, comfortable, where our do ability and

half half year about we back brand as month of our a first meaningful which enabling to to Medicare Medicare to the the sold plans be So, is digital that our ourselves their about really for agents advantage means for think what some we've plan through enrolled able investments on and first making members Solutions we've clients a or the and our marketplace Medicare already have business, and completely guided launched success and experience the pretty platform, -- members. enrollment under we our ago, that position a been in digital with

discussed, that. Medicare rate the swung through headwinds real as the and about Mainstreet QX into as action will we income as the -- XXXX in we excited book-of-business or likely saying. tailwinds we're So, we're about And through began contingent think turning that begin businesses, the the

Pablo Singzon

My stress of market those MSI of strong terms of Got do is some it. MSI. seeing the is, to against of sort that's whether square question second about performance you then, how needs rental question is, in you be comfortable of those And around are growing in leases. that's seeing new your I And around them? helping headwinds? guess, stresses some question doing how are renewals potential portfolio? are you or what those the you Like, you grow

Trevor Baldwin

Yeah.

is And highlights integrating enabled of signing to necessarily the think tied to interfaces tenants, who the the tech times ability our kind a that provides us rent kind for renter's managing not leases. basis. providing our on distribution people software renter's venue through be I Pablo, of insurance grow with because model to them of So, of it is book-of-business ongoing solution what or providers to at payments, a really an it other are the

with them of continue that And to as penetration solution so, increasing front by in market turned the on improve to our distribution get we units our portfolios. partners highlighted and and to ability kind partnership in of distribution our partners in

Pablo Singzon

level be on Got rates it I in that. portfolio it. to they stable, about to we sort growth. stable should occupancy that fair follow-up Is of now, as And that a sort -- think from continued renter's renter's a Trevor, and would been fair you're relates of say expect just market way covering as the macro that that's that MSI? long section stay the have guess to of

Trevor Baldwin

Yeah.

think to a that's think I way it, Pablo. about fair

Pablo Singzon

you. Thank Okay.

Operator

at to remarks. will call further this closing over no Baldwin the for There I Instructions] are questions Trevor now any [Operator turn back time.

Trevor Baldwin

joining Thank for you us. everyone

a We colleagues for really to what to environment. with And to was are deliver and with our you. everyone look Thank strength super speaking clients the our us, pleased help during talk our in forward months few the really about of performance we QX. a business of challenging

Operator

conference. conclude today's does This

your disconnect may Thank You day. lines at this and a for your participation, great time. you have

The Baldwin Insurance Group, Inc. (BWIN) 13 Aug 202020 Q2 Earnings call transcript