Brown & Brown (BRO) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 revenues reached $1.2 billion, up 12.5% year-over-year, with organic revenue growth of 10.0%.

• Net income attributable to the company rose 35.3% to $257 million, with diluted EPS of $0.90, up 34.3% year-over-year; adjusted diluted EPS was $0.93, up 17.7%.

• Adjusted EBITDAC margin improved by 150 basis points to 35.7%.

• Completed 10 acquisitions in the quarter, adding $13 million in annual revenue and maintaining a robust M&A pipeline.

• All three business segments delivered strong performance, supported by new business and strong retention.

Financial highlights

• Total revenues reached $1.178 billion, up 12.5% compared to Q2 last year.

• Income before income taxes increased by 36.2% to $346 million, with margin improving to 29.4% from 24.3% year-over-year.

• EBITDAC-Adjusted for Q2 2024 was $420 million, up 17.3%, with margin at 35.7%.

• Dividends per share paid increased by 13% year-over-year to $0.13.

• Core commissions and fees grew 11.5% year-over-year to $1,118 million.

Outlook and guidance

• Management expects continued organic revenue growth, supported by new business, retention, and acquisitions.

• Expecting 50-100 basis points of adjusted EBITDA margin improvement for 2024, contingent on storm season outcomes.

• Economic growth anticipated to continue at a similar pace in the second half of the year, with further moderation in inflation.

• No material changes expected in admitted market rates; E&S market may see continued moderation in cat property rates unless significant storms occur.

• Sufficient liquidity and access to capital are anticipated to meet operational and strategic needs for at least the next twelve months.