Baldwin Insurance Group (BWIN) The 44th Annual William Blair Growth Stock Conference summary

Strategic growth and business model evolution

• Achieved rapid revenue growth from $5.5M in 2011 to $1.3B, driven by organic expansion and M&A.

• Operates through three integrated segments: Insurance Advisory Solutions, Underwriting Capacity and Technology Solutions, and Main Street Insurance Solutions.

• Built a unified technology stack and organizational structure, enabling operational efficiency and differentiation from peers.

• Consistently delivers double-digit organic growth, with a scalable model and significant margin expansion potential.

• Aims to become a top 10 global broker, currently ranked 18th, with further growth expected as leverage decreases.

Segment performance and innovation

• Insurance Advisory Solutions uses a proprietary Risk Mapping process, achieving an 85% win rate versus a 10% industry average.

• Underwriting Capacity and Technology Solutions (MGA platform) grew from $60M to $915M in Gross Written Premium, launching multiple new products annually.

• Main Street Insurance Solutions leads in embedded insurance for new home sales, with attachment rates rising from mid-40s% to 58% in Q1 2024.

• Embedded insurance solutions are expanding into mortgage origination and real estate brokerage channels, showing strong early growth.

• Organic growth is driven primarily by new business generation, not market cycles, with sales velocity outpacing industry averages.

Operational excellence and financial inflection

• New hires and acquired sales professionals outperform industry averages due to standardized training and integration.

• MGA programs maintain loss ratios below 50% annually, ensuring strong capital provider relationships.

• Acquisitions focus on high-quality, larger firms, with post-acquisition growth and margin accretion reducing purchase multiples over time.

• Infrastructure investments in technology, leadership, and compliance have temporarily compressed margins but set the stage for future expansion.

• Margin expansion of 250-300 basis points is guided for 2024, with further gains expected over the next five years.