Brown & Brown, Inc. announces fourth quarter 2024 results, including total revenues of $1.2 billion, an increase of 15.4%; Organic Revenue growth of 13.8%; diluted net income per share of $0.73; and Diluted Net Income Per Share - Adjusted of $0.86
DAYTONA BEACH, Fla., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. $(BRO)$ (the "Company") announced its unaudited financial results for the fourth quarter and full year of 2024.
Revenues for the fourth quarter of 2024 under U.S. generally accepted accounting principles ("GAAP") were $1.2 billion, increasing $158 million, or 15.4%, compared to the fourth quarter of the prior year, with commissions and fees increasing by 15.4% and Organic Revenue increasing by 13.8%. Income before income taxes was $275 million, decreasing 22.8% from the fourth quarter of the prior year with Income Before Income Taxes Margin decreasing to 23.2% from 34.7% as a result of a gain on disposal of certain third-party claims administration and adjusting services businesses sold in the fourth quarter of 2023. EBITDAC - Adjusted was $390 million, increasing 22.6% from the fourth quarter of the prior year with EBITDAC Margin - Adjusted increasing to 32.9% from 31.0%. Net income attributable to the Company was $210 million, decreasing $59 million, or 21.9%, and diluted net income per share decreased to $0.73, or 22.3%, with Diluted Net Income Per Share - Adjusted increasing to $0.86, or 24.6%, each as compared to the fourth quarter of the prior year.
Revenues for the twelve months ended December 31, 2024 under GAAP were $4.8 billion, increasing $548 million, or 12.9%, as compared to 2023, with commissions and fees increasing by 12.1%, and Organic Revenue increasing by 10.4%. Income before income taxes was $1.3 billion, increasing 13.7% with Income Before Income Taxes Margin increasing to 27.1% from 26.9% as compared to 2023. EBITDAC - Adjusted was $1.7 billion, which was an increase of 17.0% and EBITDAC Margin - Adjusted increased to 35.2% from 33.9% as compared to 2023. Net income attributable to the Company was $1.0 billion, increasing $122 million, or 14.0%, with diluted net income per share increasing to $3.46, or 13.4%, and Diluted Net Income Per Share - Adjusted increasing to $3.84, or 18.2%, each as compared to 2023.
J. Powell Brown, president and chief executive officer of the Company, noted, "The fourth quarter was outstanding. We are extremely pleased with our 10.4% Organic Revenue growth for 2024. These results were only possible through the incredible efforts of our 17,000+ teammates."
Reconciliation of Commissions and Fees
to Organic Revenue
(in millions, unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2024 2023 2024 2023
------ ------- ------ -------
Commissions and
fees $1,161 $ 1,006 $4,705 $ 4,199
Profit-sharing
contingent
commissions (57) (42) (166) (130)
----- ------ ----- ------
Core commissions
and fees $1,104 $ 964 $4,539 $ 4,069
Acquisitions (26) (146)
Dispositions (20) (101)
Foreign Currency
Translation 3 10
------ ------ ------ ------
Organic Revenue $1,078 $ 947 $4,393 $ 3,978
----- -----
Organic Revenue
growth $ 131 $ 415
----- -----
Organic Revenue
growth % 13.8% 10.4%
See information regarding non-GAAP measures presented later in this press release.
Reconciliation of Diluted Net Income Per Share to
Diluted Net Income Per Share - Adjusted
(unaudited)
Three Months Twelve Months
Ended December Ended December
31, Change 31, Change
---------------- -------------- ----------------- -------------
2024 2023 $ % 2024 2023 $ %
------ ------- ------ ----- ------ -------- ------ ----
Diluted net income per share $ 0.73 $ 0.94 $(0.21) (22.3%) $ 3.46 $ 3.05 $ 0.41 13.4%
Change in estimated
acquisition earn-out
payables 0.02 (0.02) 0.04 -- 0.06 (0.06)
(Gain)/loss on disposal
(1) (0.02) (0.35) 0.33 (0.09) (0.37) 0.28
Acquisition/Integration
Costs -- 0.01 (0.01) -- 0.04 (0.04)
Amortization 0.13 0.11 0.02 0.47 0.44 0.03
1Q23 Nonrecurring Cost -- -- -- -- 0.03 (0.03)
----- ------ ----- ----- ----- ------- ----- ----
Diluted Net Income Per Share
- Adjusted $ 0.86 $ 0.69 $ 0.17 24.6% $ 3.84 $ 3.25 $ 0.59 18.2%
(1) Includes the gain on disposal of $0.35 associated with the sale of certain third-party claims administration and adjusting services businesses sold in the fourth quarter of 2023.
See information regarding non-GAAP measures presented later in this press release.
Reconciliation of Income Before Income Taxes to EBITDAC
and
EBITDAC - Adjusted and Income Before Income Taxes
Margin(1) to
EBITDAC Margin and EBITDAC Margin - Adjusted
(in millions, unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2024 2023 2024 2023
------ ------- ------ -------
Total revenues $1,184 $ 1,026 $4,805 $ 4,257
----- ------ ----- ------
Income before income taxes $ 275 $ 356 $1,303 $ 1,146
Income Before Income Taxes
Margin (1) 23.2% 34.7% 27.1% 26.9%
Amortization 48 43 178 166
Depreciation 11 10 44 40
Interest 46 47 193 190
Change in estimated
acquisition earn-out
payables 11 (9) 2 21
----- ------ ----- ------
EBITDAC $ 391 $ 447 $1,720 $ 1,563
EBITDAC Margin 33.0% 43.6% 35.8% 36.7%
(Gain)/loss on disposal
(2) (1) (134) (31) (143)
Acquisition/Integration
Costs -- 5 -- 13
1Q23 Nonrecurring Cost -- 11
------ ------ ------ ------
EBITDAC - Adjusted $ 390 $ 318 $1,689 $ 1,444
EBITDAC Margin - Adjusted 32.9% 31.0% 35.2% 33.9%
(1) "Income Before Income Taxes Margin" is defined as income before income taxes divided by total revenues.
(2) Includes the gain on disposal of $134.6 million associated with the sale of certain third-party claims administration and adjusting services businesses sold in the fourth quarter of 2023.
See information regarding non-GAAP measures presented later in this press release.
Brown & Brown, Inc.
Consolidated Statements of Income
(in millions, except per share data; unaudited)
Three Months Twelve Months
Ended December Ended December
31, 31,
---------------- -----------------
2024 2023 2024 2023
------ ------- ------ --------
REVENUES
Commissions and
fees $1,161 $ 1,006 $4,705 $ 4,199
Investment income 22 18 93 52
Other income, net 1 2 7 6
----- ------ ----- -------
Total revenues 1,184 1,026 4,805 4,257
----- ------ ----- -------
EXPENSES
Employee
compensation and
benefits 582 554 2,406 2,187
Other operating
expenses 212 159 710 650
Gain on disposal (1) (134) (31) (143)
Amortization 48 43 178 166
Depreciation 11 10 44 40
Interest 46 47 193 190
Change in
estimated
acquisition
earn-out
payables 11 (9) 2 21
----- ------ ----- -------
Total expenses 909 670 3,502 3,111
----- ------ ----- -------
Income before
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