📈 Results Brown & Brown
Q4 Results Brown & Brown
Hi Partner 👋
On Monday, Brown & Brown published its full 2023 results after hours.
The conclusion? Results were great. The stock increased by 5% yesterday.
I’ll explain you everything you need to know.
Brown & Brown
Brown & Brown is an insurance brokerage firm that offers various insurance products and services to businesses, individuals, and organizations.
They specialize in providing a wide range of insurance coverages such as property, casualty, employee benefits, and other related services.
Here are the essentials (click on the picture to expand):
Results
The results of Brown & Brown were great, as you can see here:
Q4 2023
Revenue: $1,026.2 million (+13.8% YoY)
Commissions and fees: +12.4%
Organic Revenue: +7.7%.
Income before taxes: $355.1 million (+82.9% YoY)
EBITDAC Margin: 31.0% (-0.4% YoY)
Net Income: $268.6 million (+85.0%)
Full 2023 results
Revenue: $4,257.1 million (+19.1% YoY)
Commissions and fees: +17.9%
Organic Revenue: +10.2%.
EBITDAC Margin: 33.9% (+1.2% YoY)
Net Income: $870.5 million (+29.6%)
The earnings call was also really interesting. Here are some key takeaways:
“On the M&A front, we were quite active acquiring over 30 companies across our largest three divisions, expanding our footprint in North America and Europe.”
“From a capital allocation perspective, we continued our disciplined approach with the goal of optimizing shareholder returns with a balanced mix of M&A and internal investments, while also continuing to pay down our debt and maintain a conservative balance sheet. We also increased our dividends for the 30th consecutive year.”
“We would summarize the overall economic sentiment for our customers as cautiously optimistic.”
“We hit another major milestone, generating over $1 billion of cash flow from operations, growing 14.5% over the prior year. Our full-year ratio of cash flow from operations as a percentage of total revenues remained strong at approximately 24%.”
“As we head into 2024 and on our way to our next intermediate goal of $8 billion in annual revenues, we have great momentum across the entire company and feel really good about our position.”
In general, it can be concluded that we are very pleased with Brown & Brown’s results. It’s a company we love to be associated with.
The culture at Brown & Brown is amazing too.
Just take a look at this statement of CEO Powell Brown (grandson of the founder) at the end of yesterday’s earnings call:
“You know at Brown & Brown, we're a very goal-oriented company. We set goals. We achieve those goals and then we set a new goal. 12 years ago, we were roughly $1 billion in revenue and we set a goal to get to $2 billion in revenue. And in seven years, we took it from $1 billion to $2 billion. Then we set a new goal which was to bring $2 billion to $4 billion. And five years hence, we actually went from $2 billion to $4 billion. Now we're setting a new goal of $8 billion in revenue. Somebody would have asked, when are you going to get there? And the answer is, we don't have a timeframe. And the reason I say that is if we wanted to be $8 billion of revenue, we could go out and do that, but it would not be in the best interest of our shareholders, which in turn, 22% of the company is owned by teammates. So there is incredible alignment in our organization in terms of our long-term goals and objectives.” - Powell Brown
