Brown & Brown (BRO) Q2 2024 earnings summary

Executive summary

• Revenues for Q2 2024 reached nearly $1.2 billion, up 12.5% year-over-year, with organic growth of 10.0% and strong performance across all segments.

• Net income attributable to the company rose 35.3% to $257 million, with diluted EPS up 34.3% to $0.90 and adjusted diluted EPS up 17.7% to $0.93.

• 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.

• Economic environment remains positive, with moderated inflation and continued consumer and business investment.

Financial highlights

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

• Adjusted EBITDAC rose 17.3% to $420 million, with margin at 35.7%.

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

• 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.

• Economic growth and inflation expected to remain stable in the second half of the year.

• Admitted market rates anticipated to remain steady; E&S cat property rates may moderate further unless significant storm activity occurs.

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

• CAT property rate outlook depends on storm season outcomes.