BRO - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to the Brown & Brown, Inc.

Second 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 including answers given in response to your questions, may relate to future results and events or otherwise be forward looking in nature. Such statements reflect our current views with respect to future events, including those relating to the company's anticipated financial results for the second quarter and are intended to fall within the safe harbor provisions of the securities laws. or in and are materially result uncertainties currently or events number to from of or forward-looking anticipated risks any factors. of and desired a results number the as subject future a those statements of Actual made in a referenced may differ issued as the factors the company risks identified unaudited differ uncertainties time the financial other from Exchange or quantified, current finalizes filed identified preliminary results press its to for Commission. Such factors it currently yesterday, that results include the set financial in forth not numbers have release company's and reports that may time the company's determination and and its second in Securities with quarter, those the the from

Securities information, these connection the in Exchange We as Additional or and forward-looking this the company as or forward-looking and and result to and any prospects, information affecting in as Commission. contained in otherwise. statements is intention events other posted filed business with new disclaim of factors well or presentation company's additional statements, a regarding revise call slide discussion whether the update obligation future of the with any

of the found there be call. Relations in certain in financial on the Calendar the presentation the to and by website clicking addition, earnings any this investor measures non-GAAP at Events. measures for the can this company's Investor financial company's A release used In are non-GAAP conference financial of call GAAP in www.bbinsurance.com or reconciliation most then measure on press comparable

Powell Chief Officer. now will said, to that I the and turn Executive call President With Brown, over

begin. may You

J. Powell Brown

and Good earnings our morning, Shannon. to welcome Thanks, everyone, call.

outstanding Brown another was one for quarter second Brown. & The

collective deliver to we or as WE. our The capabilities, team across Our leveraging strong Power net of segments say, business by all new continued

performance regarding Andy along in on then discuss our some with M&A financial landscape. the our I'll will and market performance the comments updates more provide detail. high-level insurance

Lastly, up with before closing open some up wrap thoughts we it I'll to Q&A.

the Slide third of revenue, quarter growth of growing our quarters. quarter. $X.X second let's over This into the quarter Now double-digit is I'm for XXXX. the We delivered organic nearly of of XX% now out #X. results on total organically XX.X% last and in X get billion

EBITDAC earnings points XXX adjusted share Our margin basis XX.X%, to our improved to XX.X% and $X.XX. adjusted grew per

M&A acquisitions with the estimated revenues completed On strong quarter was it great and line top we XX million. $XX of another annual growth. bottom front, Overall, of

remained demand Slide the elevated on to quarter. and during spend, now services. continue I'm X. but an standpoint, inflation did economic Consumers moderate driving From for products

of bifurcation However, we patterns consumer. on continue to see income based levels the spending a in

projects In addition, rates in business starting leaders now new have interest and plateaued. are to investments their companies, are making construction seem that

to slower customers many of As but as XX to XX to at pace continue our a a result, compared employees, hire months ago.

landscape. companies up X%. believe We care consulting complexity very pressures ongoing costs driving challenging positioned pharmacy are we're very the upward well demand benefits businesses. our X% navigate prior pricing These relatively market. and insurance the property an employee lines to the of quarters, was benefits rates exception the changes overall the in most -- the with standpoint, E&S for few quarters, consistent exception medical, Pricing From with with similar last to and to employee any for of for were strong help size this health of

in Rates With low most compensation The lines. for X% workers' to in continue. to for states. of trend unemployment, decreases downward of X% most be to XX% admitted up we XX% a P&C remained, trend with continue to level the expect rates market this

moderated. property non-CAT for increases rate quarter, the For

located rates on zones. to and see in deductibles storm properties continue for convective We pressure upward

to a legal As remain casualty elevated ongoing of U.S. higher to of due extent, size judgments layers we primary lesser the and, for levels increases mentioned last in quarter, inflation. rate the

liability, professional rates flat we For XX%. down to saw

first market. the further as surprising quarter E&S rates the the quarter to CAT compared storm rates to we this throughout CAT are until is year. to expected property us of year moderated of of as moderate the and to quarter known. not last effects Shifting This season property the second the

some second rate continued placed XX% only were In be with many balanced. QX, and the driven we their their limits past to generally to as We increase accounts increases they've by saw to carriers while over shifted properties with few maybe offset a up and in marketplace. based capital absorbed renewals or loss-prone relatively captured the up poor savings put down additional This construction willing it others flat partial years. to entering increases. on savings rates XX% limits facilities to customers This down some combined some was realized where the the new or quarter, the

decreases our or will quarter, highly rate While business primary moderate and diversified line rates business, increase the casualty one CAT coverage, and and lines property increases on our industry to the generally diversification consistently for industry-leading performance. during rates financial customer X% between results. material moderated for of That's of and geography, focus across continued With we XX%. excess as our segment, have not on strong consolidated a impact drive why these

for marketplace remained M&A businesses. Lastly, competitive high-quality the

backers by decreased, While private are the has active. they acquisitions number of still equity

relationships with other we XX build to quarter, many continue great and acquired the companies. businesses For

Slide now I'm X. on

great performance well winning lot lines of of the retention. to of all with with of result customers, transition our growth three as new segments. business of along good X.X%, a Retail Let's quarter organic a performing with delivered another

the business. reflection been to of their team time, The this by Insureds our growth of rate the has of consistent the Most which over is new are talented strong breadth coverage. of advantage shop net our few plays driving demonstrated to the our is last years, companies and and capabilities. many our frustrated a and with and exhausted level the performance of increases

customers This our of of strong growth. programs. diverse our growth continue businesses organic of is expansion and driven Programs by outstanding growth of had impressive many XX.X%. quarter, The another the substantially business majority performance to new The of segment drive across existing in portfolio delivering the

with organic delivered another binding performance revenue driven net by our personal within Brokerage primarily strong writing Wholesale XX%. more lines of was This and businesses. new growth business quarter

but business of open grow last Our several performed at rate not the brokerage quarters pace did well property. to the in decreases due

performance. As diversification we've as business strong balanced built well strategically deliver and binding have consistently helps mentioned we before, be authority our to between financial wholesale this brokerage us

turn more it with I'll get to over financial results. Andy details Now our to into

R. Watts

financial our our #X. to those you, non-GAAP income of total or billion, revenues Thank The Powell. morning, margin, appendix compared before an EBITDAC of as review I'll financial in additional can detail. by income taxes net to EBITDAC XX.X% Good share, over measures grew XX% taxes on by delivered we're prior XX.X%. on found $X.XXX to or income we referring reconciliations in be Slide this presentation the on refer second either yesterday. We GAAP per diluted income results We're the issued and increased quarter before measures growing basis. of press Income in the EBITDAC, everyone. we When adjusted the release to year.

XXXX. XX.X% prior consistent $X.XX. to basis diluted The was was the margin the quarter Our for with quarter effective XXX rate year over increased an impressive income and net points XX.X%, of EBITDAC by second by the per expanding tax share

to our prioritize increased weighted last year Our outstanding slightly down paying continued rate debt. compared as as shares we to floating average

Lastly, increased our XX% by to quarter of strong dividends was year. as second last very per share a the compared it paid Overall, quarter.

of driven organic grew acquisition than growth by total contingent of X.X% over with over The slightly due revenues commissions, lower million $X the to segment grew lesser Retail compensation. a to in of and higher Slide this #X. difference EBITDAC offset year. noncash due revenues The total to moving to slower contingent past approximately We're and a revenue second revenues with the between partial was stock-based extent, year, commissions total organic X.X%. quarter lower activity

the of to base. of contingent expense expanded Excluding the due the our lower commissions, leveraging impact margins nicely

impacted We're growth due contingent another revenues increased #X. a by quarter XX.X%. growth for Slide strong revenues the Organic and XX.X% million bonus positively one $X and approximately organic had underwriting a growth XXXX. primarily to hurricane nonrecurring from of strong our in in with driven of performance was Programs quiet incremental our growth resulted of total season organic finalization programs. on was of which by The excess commissions, total increasing in

For commission contingent the million we also quarter, calculation for related a $X approximately finalization recognized to of XXXX. the

the Our basis businesses expanded margin leveraging of driven higher to XXX of fourth the well base, claims processing and sale contingents expense as XXXX. our of quarter in as XX.X%, EBITDAC the certain by points by

Slide on We're #XX. over

excess in growth completed last organic total Wholesale of increasing The by segment incremental driven expansion another quarter was months. and Brokerage total Our over with in revenues revenues delivered of XX%. organic the XX acquisitions great XX.X%

EBITDAC the prior primarily increased leveraging points in to due year certain XXX costs by base. and margin our Our expense basis XX.X%, nonrecurring to

lower got preparation credit in September used will leverage. a We've outstanding our remaining of have had proceeds rate that loan. an second generation for responded $XXX X.XX%. regarding other to towards mature senior In of $XXX down term million of longer-term $XXX a cash profile notes we coupon year. well this structure, pay rate few the the our execution, of and senior quarter, a market were outlook. bias These of the and million of new and capital million to notes excellent XX-year The portion notes comments We floating issued in

quarter. $XXX debt Additionally, floating rate million the down we in paid of over

even of For in paying related cash this strong quarter over of first XXXX. year $XXX this million, first mentioned to into taking federal the previously had we of the generation consideration year, taxes timing X the months of when

to We our a to EBITDAC XXX for we we for adjust be the adjusted guidance of slightly storm margins first financial season. basis improvement result, the the of With now year. on outcome performance strong XX year, This is down. expected for regarding as expecting may margins guidance full year. indicating range the provided previously are XXXX. up And that dependent up had half full for or this the of Lastly, margin

it Powell let comments. over to back that, With for closing the me turn

J. Powell Brown

a report. great Andy, Thanks, for

year Let's is the will with the economy. fairly second we similar economy that continue on rate to the the in think start of seeing, the half. at the we're half first grow Based to everything

will customers will as environment new a our employees. progresses backdrop continue we as Overall, year see our to further think inflation and this to we hire Additionally, positive and invest the growth. moderate

worth perspective, rate it's splitting the admitted and E&S into a conversation markets. From

we things to move the auto; of will market, outliers any really changes be admitted we storm pricing higher. the continue rates For unless summer. property The market, large CAT not moderation premium accounts, from E&S the work meaningful will the anticipate continued for like to really, But year. Casualty do likely expect more material there's than in this pressure first casualty; comp; half or that. continue pricing activity

front, M&A the talking continues We're we're On our capital a in lots be we with of feel strong position. robust, companies, good. and to pipeline

Brown, historical rooted approach returns. & relationships, ensuring success to delivering then For has Brown cultural our financial disciplined in been alignment, and building financial strong -- ensuring our

how am to very very spent capabilities domestically proud I both and build an also I'm at to all internationally. and effort the capabilities significant of is team. that great pleased executing. our serve team customers outstanding sizes, We've develop developed we

delivering the It's of to year metrics. win WE excited financial industry-leading new about and the year that us half is of of second business. more enabling The Power We're net another

Q&A. over for that, Shannon it it turn to back with I'll to Now up open

Operator

Mark question first comes of Truist Hughes Our Instructions] from with the line [Operator Securities.

Mark Hughes

how the you out a pricing just parts. capacity from on perspective. as property And These way I'm this sort well out your then of of of and quarter? property issues break as retention, growth lot organic curious moving policyholder Any played of could impact

J. Powell Brown

to you unfortunately, you're the open do what no, to I up that. I we give about. around get will And don't your is appreciate goal talking a on answer color And us But that.

we pressure, But the Property this. look was towards we X/X it got way particularly in the under as at is QX date.

little we're getting much, a all, decreases, you losses. flat most except And got really we're poor seeing And but so lot rate might some bit. accounts, you've be of if if rate I'm had not decreases. it say be might to -- it a so or construction, But even going losses, up pretty bad

We We not I This can I what last was happen think what agree I say and and -- is is this would tell thought, I thought to we're going today you at So year. or us. this. this. I on Andy least seeing surprising -- to thought

tough And year again there -- so customers. was for last was rate another year

forever. been And the property the some so in in rates of highest are they've

they're so the liked people return or projected so return And in. payoff, coming the payoffs

And so and depending on that happen in does, QX dictate will beyond. in continues storm season what the pricing what on to

R. Watts

here. Andy It's

again, One prepared think was And of because property inside pretty larger just property there CAT of industries, would suggest the comments is And customer our quarter that's CAT of than in mentioned book, impact is we the locations, the second overall during our comment property there. et our book. from cetera. -- just we've sizes, diversification. about things got just But for the placements more balanced our

balanced. pretty it's So

And we again, as in down direction moving bit there's if there. other be up even, it comments, inside mentioned by might quite something an little the the or line, a else individual goes that often,

Mark Hughes

and suggests approach? move industry, meaningful a to trend, a the Powell, underwriting you seeing continuation marketplace? the gradually higher? is pricing, And you therefore, more higher. reserve have Anything real there some that Understood. of in this continue There Or move expect across been in to distress Is you're said prior the anything the change casualty issues. of

J. Powell Brown

one Mark. make is triggered I don't says It's couple it of me a what a too, let Well, observations. think more. there's thing, But just that go point, up this to

one, umbrella one an that's from on Number get very significant -- limits is low. to ability the carrier

million. from So million might you carrier have $X and now might $XX a before gotten get you

So you've million, got get one. to there. wanted number to with build carriers up, you if That's $XX several

there certain of are Number are tougher two, than note business please that classes others.

areas anything point are its you haven't, lots you two, account if of is be I of of X%, that's -- that's may manufacturer X%, A under under of case apartments; asked distribution casualty the be. night but that or classes which not -- to business So restaurant may like a mean XX% X%, a have club; XX%, three you and I'd liquor not to habitational, does put tough continue up really residential with might that be distribution not multiples that pressure. hab alcohol, casualty construction. X or but be standpoint? so Those is consumption, would a But up so all me, whatever products would from what a X that. revenue

So it class lot stuff. you are on country, business, the where of a of in the depends

I through, do pricing my and think than any seemingly that more coming from from time brokers what to carriers the there so hearing discipline is so pressure around be more in career. you're other casualty which And continues is on

Operator

with the Zaremski question next Our from Michael comes line of BMO.

Michael Zaremski

X, I but trend. pretty guess, of make X it a quarters, double kind digits, last impressive, does

on near I of I else depending on If kind so that's there season. driving really decel you guess just color -- are might along of of property good So want unusual within your you versus lines the casualty your assume, organic the -- on discussion is material, marketplace out excellent the marketplace? in CAT call you've us had But portfolio, anything far. just very that's of if the there's kind term to then gave levels would upwards which pressure and the

mentioned you also back business to more not about, we not just heads might want should thinking more be sustainable term? of else which wins, be out sustainable. that you be new there's that near maybe Anything our And might in about, then call the shopping, so that

J. Powell Brown

translates I through don't not. feel Well, business. is new, into we're of the that about net to not writing, -- how about going say or business I'm the new know that good and is amount it our We

market, of you the the the this, didn't counter I in country which I do to believe, larger other think pressure. accounts, pockets but is mention on the only of and there thing in is kind admitted that,

United in in Northeast in the very the happening States so Pacific Midwest. or What's might different be or be the in could that Southeast And the the than very Northwest dependent.

we're Mike, sexy have just rhythm. deliver and try I we think, just every not each execute well. So customers our And a we We business. remember, a to for good And day.

We are level And a buyers that's of when of people. talking there's with lots insurance, there. out fatigue

condo talk fleet hopefully, sometimes that not, means result or X auto a for times to "Listen, case on be, more And new the we're of a an else." or years to write as say, lot able of whatever, may to somebody I you mix, whatever just we're So than that. got if and increase your the you your, in business need

That feel we're talk to work that trying can you, our just no not it. to than mean, -- We But good other a secret I'm about about we're nothing say I lot different. there's that, culture too. against we immune is not. think what there's -- like we

we don't employees. teammates, We have have

leaders, the owned differently. And of run managers. have business we teammates, don't as know. We we is And have culture, an the XX% company have we by when ownership you

X we us XX think years don't and really X year, well. We out, So years, it served think has X years, quarter-to-quarter.

And well. really so we're just executing

Michael Zaremski

Okay.

seeing And looking lastly, I'm results, can clearly obviously, I any color. other Just if great the just transcript. at guess I get

think rate within brokerage worth said wholesale I the open more if understand there further that's am side, that versus seeing you sharing? if color I right, I And you're any correctly. decline in binding authority

J. Powell Brown

and that -- minute. just brokerage of property. for open use let's remember Think Yes, a as

So Casualty professional and got downward pressure. pressure we property. already has about upward got talked liability's

So the just in in can't X the of It headwind. have of have of doesn't you a means X the grow. X mean there shifted a to that X that benefits tailwind --

R. Watts

perspective generally, keep one second the then is the quarter property. in heavier And of that ones Mike, for

J. Powell Brown

property. CAT Yes.

R. Watts

me CAT clarify. Let property.

Operator

Wells question next Our of line Elyse Fargo. from the comes Greenspan with

Elyse Greenspan

you your the if see basis My blows under that you on expansion. where losses fall XX is within margin first depend and XXX just points on question of wind guidance, the captive? not to the whether range Does or

R. Watts

No, there. got it, bunch that Elyse, factors it's a in of I think in drives

of do of how and they them move forth. back how contingents, depends I upon year. for during Mix each grow think much it businesses, outlook the

where trying out. kind a play just range as of to give so to things And

season, of occurs happens storm upon with our severity business, flood our it, of impacts comment, depending depending upon To and because inside what it impacts the that there. what captives the

goes up, if vice probably the and goes one other down, So one versa.

So there's a It's just it. may not hard properties. a of inside insured hit hit or exactly to where storm balancing all always determine in

Elyse Greenspan

right, then the so half at guess, first mean, I were the the Okay. But XXX, to XX of XXX year. for I you guys

Is do the know is another then as asking -- around I does within the captive way reinsurance of revenue, you the -- I'm year. had Some for just understand from imply losses the of last right, trying well right? and that the as kind the that it in the pieces year. it some get had in conservatism that you that half. that back this, margin of contingents you of contraction half captive So moving one-off implies the and just -- to what one-off, back

R. Watts

mind, think it was to was is, year talked in this obviously, storm last Keep a about we've which calm Yes. everybody much -- season. I pretty

about think And so When year, we the happen go business as each our what's performed extremely we flood and as well our we no have during captives our into captives, to idea well. year. going

of So to sense over storms, going years. just we'll and at budget into that. makes do look We for do it we a lot it, estimates use averages

So that way, if all it there. doesn't happen, of inside upside, it's

think happen, quarter that you the on if in Elyse, if would I including probably that's models doesn't everybody, for backwards. activity. said, the So the upside. that margins and there, higher most we yourself, coming in the has plan for storm is quarter, would think it claim yes, the I be third And third about likelihood Like

Elyse Greenspan

so seen guys modestly going the as But consistent programs, strong I in growth guide business level, in not prospects specific going that overall, pretty how think just don't that know going the about we I benefited you I'm growth of do have guys quarter. out a double-digit forward, on segment Okay. called know think you ask to you number. forward? initiative a you organically that just But to growth segment like And business. one for then on

J. Powell Brown

there have that business are ways. businesses Number property-driven. several one, So remember, think of which in I kind of CAT you

have could those. So pressure on rate you

have writing those comes basically, have they could rate are also You little customers. a liability-driven, to more that could they new but down professional or it which pressure, casualty-driven --

much -- is there's And availability a a up this standpoint -- in we're what about going consistent from and So very CAT businesses, availability to do, to I the of and think been we've right about discussion capacity. of tried you're what of I don't I to now, historically, capacity. you're this think hear think is, on point, as

pricing hear capacity. going of about You're that to

give results that's only so that we that. the hesitancy because really you you, would I and to was expecting I Elyse. -- feel do. clarify But to wanted our And to I about good

Elyse Greenspan

Yes. pointing No, I Powell. That's digits. mean, out was double the I yes, helpful,

Operator

from question Jefferies. of next Kinar the comes line Our with Yaron

Yaron Kinar

after clarification one set questions. the Maybe last of

case the So in benign range with, scenario guidance even in the of storm you're guess, looking at a that here kind season. for best margins, I more

into that, right? You're still modeling some storms

J. Powell Brown

Correct.

R. Watts

yes. are, We

Yaron Kinar

in but just pricing environment want And pricing 'XX from Okay. years a your am is I the pressure a mounting off-guard through maybe going in early XXXXs, as caught casualty, there looking to the pricing pressure further little I back and even I XXXXs, bit perspective? or kind even to casualty that seeing you're say the -- current was a bit. recognize Powell, then, career. comment don't late than guess being in to of worse for XXXX that back that circle about your curious, me Not to back that I worst I just

J. Powell Brown

Yes.

started period me did industry New of give short in -- worked time And at So XXXX for in and graduate insurance broker a in several I I wholesale go for a then that let the at an a company. school in back, you York. years,

broad statement. I were struggled of of have when business that and pressure. big, during that of so been started big casualty 'XXs just early and a And period not the in it I'm classes to today, there under all has seeing making sizes historically time. And shapes,

of residential talking casualty. in habitational broadly I'm construction particular. speaking I of think about But and I think in

basically discipline on mean continue the I willing because, somebody line what -- about what flinch. specifically to usually, want upward the So that pressure industry to I is much to rates. is I'm the thinking by the of not hold so more

the of flat And can't is the if you impression you pricing to don't That is, career, this what on out a give casualty is instances. I that impact broadest want so I'm in go of piece saying in some discipline that, But you in business, new-new recall. possible. I that keep my rates

have XXXX. to back only I So

Yaron Kinar

helpful that's I leading pretty could that If No, are or one it. one Got the -- consistent growth programs growth clarification. sneak in are of coming leaders Programs, you the growth seen -- in. segment, the where Or last a largely? from? the in are In have one those same are the a shift in the

J. Powell Brown

this. What business, are times, that say a you I the on leaders. of is handfuls, three handful, going you're two would any In be have, going business number many to have to depending handfuls,

And about over period it. growing talking statement, well. consistent a think X, as I'm long of X, so extended the I'm talking period which been that's an and yes, be general would other say those very I X growth. years, driving have we've time, of not would over I that seen are those time, And firms tend that within to But how be about

Operator

next Cox Goldman of question the line Rob Sachs. comes Our with from

Robert Cox

Southeast. think taking the maybe property you maybe some the in of of increases giving commission seeing or I to kind your were had offset clients year, the business last So highlighted particularly rapid price on -- up guys some just

retention improved those curious, increases? I'm other sort a now the side Brown that year that the of So back we're way large on larger with percentage flip other this and maybe of did commission seeing

J. Powell Brown

competitive I the remember at exactly I me want remember. saying that, point. I'm Andy. very know don't looking don't but to in is clarify property. you that it I Yes. let

And else the because the of for in interest so what that we we looking mean don't, if somebody what's always I customer by best are will. is

there mean is account over So time, or any have by to And we we're back. build something. able where are maybe that to give may instances it in commission to an get I some what market up

But that on of tell down. pricing is way having up the on said you the paramount that, I either importance, would way or

being absolute going I is And are it's compensated that's would answer how the compression pressure. there like more that towards you don't more don't But feel we're a I in believe I it. that's I so the to from Rob. And lead fairly. I'd price what that -- that, that we're about on opposed as And on believe downward there's how compensated

R. Watts

different Rob. This X don't completely take have cycle. guess, we're years. level of like rates I been Yes, like market, woods least in it or I out and for we're mean, going at the X comment, this This the the we've up is your anything of been a you a years. see to of the But like kind And year or XX of declines. first some like seeing not it's XXs part not that. start you're for or few when doing

take either in years." cycle, So we'll storm last So which taken what just saying, now are limits." we're see the more a with my very many can in to happens early few cases, right customers I'll "Excellent, some "Great. over I Or it get pain P&L because season. they've so much

Robert Cox

just you in to casualty some Appreciate remainder see XXXX, contingent you And that it. potentially of that. a this kind would commissions? maybe And contingent of trend on expect Got commissions. your the on of already starting Are as impact to pressure XXXX? Okay. follow-up upward loss

J. Powell Brown

just solely to about just not but we loss casualty I loss and contingencies. see even think I'm talking continue activity we activity. sharing impacting see profit

So is one kind universal phenomenon. that of of of not business. a line I it It's a across-the-board kind think

R. Watts

surprise the through a has are of by the Rob, been think that under talked which pushed that about mean, I that out with takes pricing while, we've I auto anybody level been has Yes. areas is books in that most don't Retail, auto. pressure for there.

So we soon. don't that time see any abating

Operator

Peters Raymond the of from line question Gregory with James. next Our comes

Sidney Schultz

is This for on Sid Greg.

number. smaller down like the understand commissions, Just I year-over-year. the looking it's a Retail over staying with were segment, at contingent XX% they But just

quarter could So to sort the decline? year's fourth or Anything remind there us in that from if bleed that can of benefit was you onetime some last just number? third

R. Watts

other around lines It's Andy primary small that troops before, as impacts inside talked some but is well just, there. year, of here. as of amount accruals we We had with the some auto, the as about made of this last we

Sidney Schultz

Okay. then a follow-up. just as And

item, And as forward? moving On being seasonality income is just consider rate-dependent we interest the line we investment that of there forward? moving there any think should should

R. Watts

and It's those. the Yes. interest real off rates seasonality of outstanding more what's that No then earn ability driven to it. have to available the balances on

end saw got we're at Rob which million higher You probably in maturity. for the we've June, a up cash notes we'll (sic). $XXX is that of we have use there, sitting September the -- level paying That of on, for down we're about come in

the some income drove -- quarter. bit that So a little in incremental of interest

Operator

line from of question Our comes America. Bank Grace Carter of next the with

Grace Carter

quick one on the follow-up guess contingents. I

Just given that that to activity of Retail quarter you think Or would expect just ratio other contingents do loss impact pretty segments segment? impacted across the the in the there forward? to of claims is isolated segments, kind the the dynamics into you Retail the different bleed your going any

R. Watts

but guess see don't more I we bleed over. at now, from a it's stage. we what can Obviously, this see at like stage, feel significant anything's this right possible in probably Retail isolated

Grace Carter

of how are how the levels sustain you sort puts long of perspective. of lately. from past could can thinking organic growth just quarters? about maybe thinking several all And that over you sort guess, that seen takes any it's the think it these Clearly, kind that have over the I guess been about above mid-single digit towards just sort all just back and historical if thinking about elevated I we've range time, term. in of levels. us the path And about think here about And glide you're internally talked you do long you help that over quite at

J. Powell Brown

yes, range modifying give stated. we of are not you over correct technically our have organic the we don't time we And are in period And a long And statements. guidance. that growth

now. we're execute two, think a our seeing organic is right well that businesses. in standpoint plan of That's very are to in the the our to similar continue seeing we I businesses really that international growth, growth our domestically that one. Number number from we here growth

as well. with So that we're pleased

not would statements changing what So We're on I say is commentaries. our this. those

that that a rate a that good positive, positive. pressure, on really lift well to I our future which But is really feel that organic now. property for think of of let's will was, time. growth we're I I executing say, we about get We think acknowledge the relative some period little right business. very

Operator

comes line Keefe, Woods. & from Shields of question with next Meyer the Bruyette, Our

Meyer Shields

& prospects. from of really in now know, win can impressive. I'm ability highlighting share I years you've change a been represents Brown's with, sort really, of contrast perspective, as ago? maybe a a if this Powell, permanent to don't Because market you X big that's picture Brown that been growth wondering growth driver

J. Powell Brown

than let sort you back This of is I how would -- slightly take me farther that.

specifically and for bought XX years in upper-middle generally lucky we back market and to say XX go and good, that in have were it's of would than we years. today, large accounts lot upper-middle moment we small the ago, us it, and But just But in a -- enable very we some a business. consciously, to be some let's speaking, middle employee and we that Let's broker. -- better market consciously of capabilities we have in built that market area. were a successful still And And of insurance benefits. -- be

were X,XXX- years Today, we're time. going a those is XX,XXX-life groups group? limited. ago, after the all and very The XX So we going after answer

not just schedule. that surety. It could be and could in be things. be And It a so any D&O. these could big is It It be benefit. could employee casualty. cyber. be could It on could of It exclusive property -- be

years, and So X working we specifically but have an go -- embellished and back organization. capabilities, your if further in we're time to to then as last together enhanced you frame, want the better those

you -- for custom So the deliver that to are our our those that customers, thing most powerful. Brown Brown & able custom be knowing teammates capabilities to at with pretty important solutions better increased collaboration, put

a having hard, And fun. we're a of but lot lot We're working of fun, too. having we're

Meyer Shields

line Okay. of Perfect. forever. talking question. it's much business a then know commissions. that like I we're helpful. guess terrible is -- I seems And about been and contingent I That's auto question all a my very just smaller commercial

wondering it contingent a why is manifesting I'm terms to now year So in pressure ago? itself as opposed of

J. Powell Brown

manifesting it's to opposed itself now a ago. think don't year as I

I the ago. in think it was embedded year

into it on going through I unusual year But you headlines, is acknowledging going get ago. but And years out think last as more -- terrible, and rolls some that that see that it again, not there on just results. not highlights it's verdicts was that Andy casualty. the that it of was was X the that carriers' just it's

So don't -- clear that's that. on not -- be let's

Operator

line question is of the from next Our Mike with Ward Citi.

Michael Ward

was social is wondering, you to been Programs And the exposed have actually on casualty how just the in up underwriting at following I all premium margins just to -- trending? able inflation? some or how other of the much are questions, quantify

J. Powell Brown

that break don't we No, Mike. out,

Sorry.

Michael Ward

We the you -- quota was of on I XQ in the captive off XQ. stake of the -- refresh premium on we Q, earned share sold you then then with could in economics in And looking hoping with and recently. some the maybe some at spiked a captives. on were think just were the Okay. just and I changes the written

have you of premiums half fee for of that or So just an commissions kind back the in curious in if outlook and terms tailwinds.

J. Powell Brown

sort landing. to a So in bring we to is want Mike, of the I And want here -- for line. bottom this

pleased we of are other any businesses, captives. an on the the or our very guidance in individual business. not, of in performance of And individual We our do give office performance

be what the would in reaching So broad statement a say would I following.

business. the not a that go-forward to giving business or be about particular like going on basis. guidance We talking individually We're

marketplace. will But do that don't will on down they We terms investments always. area. up never and I to consider the continue based may, or more. may the any in We like not move

don't offices. of done up to performance the our that we be our the the it. Chris I'm And of great this about in to and of area, trying business, And one is a about to size part the it's whatever. good our so or Programs just team y and with we the x not And talk they to get -- will saying evaluation be specifics elusive, whatever going you. And about we're we're not is, then but you, what is into or of And have it. job really feel relative and company,

answer So clarification we approach of it's it's of going to more it on But saying long-winded how a forward. a no. want

Just locations. the the like all XXX-plus we other that just part and of maybe business, have, businesses

how it. we answer that's would So

Michael Ward

can Understood. for give to the you Got non-guidance opportunity just one, backward-looking an U.K. squeeze it. about I just a to Maybe a talk sec.

-- as U.S. you profile think I the like that the But accelerated said a it similar U.K. in has looks revenue you've growth

Just two. curious if you have been between seeing any difference growth in the the organic

J. Powell Brown

of back up. have So had lot businesses me there. Remember, let opportunities acquire a to we

into And one. those That's stand-alone and some of offices. some businesses going those are of existing are

bought of one know most a -- is I we've the Kentro two, thinking business. Number Nexus, which I'm is notably, the program

capabilities slightly of have as So today in Also, acquired, I some business capabilities England account instances, that we the SME. would large you more program have but than that slightly based well. in tell are in Not larger the account, than before. larger we

feel we so good opportunities the really And about there.

idea we said and story this is reason, our a what it, Our someone people anticipating we've consistent for like have years; -- that. do; and and been one, we the XX would earlier But one I that in because with we're teammates. is story firms for appealing to say that doing ask England we if

England, bunch English a in like I soccer rugby. you football, -- athletic either or of in but that's a America, is we're And teams. So if about you live football, which competitive talk like

the doing one the that ownership culture, or in like and like this like versus it's other they so everybody business XX both. years about and likes they or managers, And the leaders most we're idea And idea forever. they the

continues have That's say will So say role of our par that. that a here we play in and on equivalent consolidation is lot -- market, what are exactly I I'd it. say, the States. there -- growth good. be business we opportunities there And feel But in the with a organic would to I businesses would in how

Operator

from line RBC Markets. Heleniak Capital of Scott question last is Our with the

Scott Heleniak

to of employee seeing you of minute just how few terms there versus a you're out? in know past business seeing wanted that benefits. ago, in trending, just you what mentioned base can on share in anything of the you're the to Or touch level talk that quarters? call Powell, new you trends but about anything kind can I of Just business high anything is terms there terms

J. Powell Brown

specific line Scott, a don't give Well clarification, we guidance. as remember, just

I So I be to how on -- say want have this. to careful I

with very our and pleased overseas. So benefits sizes and both and I employee and property our shapes, domestically at am capabilities all casualty

let's start that. with So

business I earlier probably saying we it's up in size the we're sense. Number don't writing. capabilities and employee want two, amount because to started, give capabilities writing the that, my market accounts makes property same We're grown was limited and directed I'm have you is of every ahead more to that go our impression casualty But is towards new our as new benefits at comment that that day just property if were because and those before not. well. casualty what we in there more business is, further

are it's X,XXX XX,XXX employees X employees, ago, that not very, Today, if you -- or had we all may operation, friend -- has to we're we so a And employees, the have more. that. had XXX do employees, XX,XXX we asked and years me you capabilities a may got manufacturing very X, whether have or it's capable,

capability. a it's And great expanded so

people, our we the like hiring system are the of that the way a lot built. And people is

we on how on but solution large more is customer. based might where and firm be do a So where coming And business sell solution. to they've leaving a, customized one we they you're a it's this any every accounts it's done it, a

So already what P&C. we're it limited the excited to not it's is P&C thing in opportunity. about that But going have same to, addition in because on we doing we're in

Scott Heleniak

admitted seeing talk the of again, up double Makes and is other weren't it about strong business just competing property different -- lines that of you're the is any newer Or only was that? flow that was there the back wholesale And on Got It unit. sense. you Yes. markets? before? of in just kind any any the organic it. for I is the are you players terms of trends seeing that digits. there kind Can are to coming just in that going you're had And just E&S question

J. Powell Brown

Yes.

So all, are of flow lot seeing first a the of we into business.

That's we just lot okay? first that So didn't the thing. there's of but not activity, a before,

in absolutely instances, is asked that. question you seeing question. are the The And right we is the thing second limited yes,

in, could big a many sublimit, limit full And so but mean market what number. of the the wind. writing is, a times, by standard when they're it be I not They're that writing back comes

write example, deal it's you the it construction, the when ground-up, million over all but when hotel, and could whole it good. for provide and was And million million example start $XXX would place market. happening conceivably could that market you the not only up, Texas, of $XXX or of and I'll a That a is in really be is in is $XXX an -- So construction have value and E&S the make standard in to would limit. superior be this that happening where come used wind and

same Maybe are more accounts So be E&S different in out there that into very E&S to of would of, that standard. sorry, the moving geographies, than standard are -- we E&S but aware I'm saw from instances that. But the out far of similar market to this that I'm quarter, back concept.

building, there I even you fire-resistive, still carriers think on million hitting if will $XXX in up that's that But if be remember, their your CAT. so that of be it's will And very put the against use capacity. CAT strategic a

it's still out lot but just framed, it of. that's I'm a to different than -- it's was a big saying number So come

That's it. X or X went So they into ago I E&S, come may and have how it it's and years years written back. the ago account see

Operator

to Powell would back remarks. over for Brown now turn the call I to closing like

J. Powell Brown

we Atlantic much, and lot very We're and of because as for the forward. joining said, very you water very warm for the quarter all Thank really closely Gulf. watch Yes. we going and I a how Shannon, thank prospects pleased, Obviously, you there's in the us about the today. did

know it the don't in event until we will how But there, it. storm again. probably will we in a talk gets out you that So play to supercharge

storms, of this could pricing, said We about are the in that all we Andy really downward pressure feel don't terms We going to there could it the continued sort think outlined we've market opportunities And is relates I flattening, as But scenarios. we're M&A and changing, in crater summarizing business. of today. market today, the upward have we and pressure, what space. have of any of if feel we no prospects about is storms. to We as could think have the are good of the stuff. good I the really talking to and but have we could property there if kinds we have could kind

forward very So we to quarter. next and you Good all thank talking you to look much, day.

Operator

This Thank concludes today's your conference participation. call. you for

now may You disconnect.

Brown & Brown (BRO) 23 Jul 242024 Q2 Earnings call transcript