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Revenues (Tables)
 6 Months Ended
Jun. 30, 2024
Revenues [Abstract]  
Schedule of Disaggregated by Revenue

The following tables present the revenues disaggregated by revenue source:

 

 

 

Three months ended June 30, 2024

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

449

 

 

$

243

 

 

$

129

 

 

$

—

 

 

$

821

 

Fees (2)

 

 

156

 

 

 

61

 

 

 

24

 

 

 

(1

)

 

 

240

 

Other supplemental commissions (3)

 

 

32

 

 

 

6

 

 

 

1

 

 

 

—

 

 

 

39

 

Profit-sharing contingent commissions (4)

 

 

7

 

 

 

25

 

 

 

4

 

 

 

—

 

 

 

36

 

Earned premium (5)

 

 

—

 

 

 

18

 

 

 

—

 

 

 

—

 

 

 

18

 

Investment income (6)

 

 

1

 

 

 

5

 

 

 

1

 

 

 

15

 

 

 

22

 

Other income, net (7)

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

2

 

Total revenues

 

$

646

 

 

$

359

 

 

$

159

 

 

$

14

 

 

$

1,178

 

 

 

 

Three months ended June 30, 2023

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

397

 

 

$

197

 

 

$

115

 

 

$

—

 

 

$

709

 

Fees (2)

 

 

151

 

 

 

82

 

 

 

20

 

 

 

(1

)

 

 

252

 

Other supplemental commissions (3)

 

 

27

 

 

 

2

 

 

 

1

 

 

 

—

 

 

 

30

 

Profit-sharing contingent commissions (4)

 

 

15

 

 

 

15

 

 

 

3

 

 

 

—

 

 

 

33

 

Earned premium (5)

 

 

—

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

12

 

Investment income (6)

 

 

—

 

 

 

2

 

 

 

—

 

 

 

8

 

 

 

10

 

Other income, net (7)

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Total revenues

 

$

591

 

 

$

310

 

 

$

139

 

 

$

7

 

 

$

1,047

 

 

 

 

Six months ended June 30, 2024

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

996

 

 

$

449

 

 

$

242

 

 

$

—

 

 

$

1,687

 

Fees (2)

 

 

312

 

 

 

110

 

 

 

43

 

 

 

(2

)

 

 

463

 

Other supplemental commissions (3)

 

 

119

 

 

 

7

 

 

 

4

 

 

 

—

 

 

 

130

 

Profit-sharing contingent commissions (4)

 

 

21

 

 

 

51

 

 

 

10

 

 

 

—

 

 

 

82

 

Earned premium (5)

 

 

—

 

 

 

28

 

 

 

—

 

 

 

—

 

 

 

28

 

Investment income (6)

 

 

2

 

 

 

10

 

 

 

2

 

 

 

26

 

 

 

40

 

Other income, net (7)

 

 

2

 

 

 

2

 

 

 

—

 

 

 

1

 

 

 

5

 

Total revenues

 

$

1,452

 

 

$

657

 

 

$

301

 

 

$

25

 

 

$

2,435

 

 

 

 

Six months ended June 30, 2023

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

885

 

 

$

356

 

 

$

215

 

 

$

—

 

 

$

1,456

 

Fees (2)

 

 

296

 

 

 

157

 

 

 

38

 

 

 

(2

)

 

 

489

 

Other supplemental commissions (3)

 

 

111

 

 

 

4

 

 

 

2

 

 

 

—

 

 

 

117

 

Profit-sharing contingent commissions (4)

 

 

30

 

 

 

23

 

 

 

7

 

 

 

—

 

 

 

60

 

Earned premium (5)

 

 

—

 

 

 

22

 

 

 

—

 

 

 

—

 

 

 

22

 

Investment income (6)

 

 

—

 

 

 

3

 

 

 

—

 

 

 

14

 

 

 

17

 

Other income, net (7)

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

Total revenues

 

$

1,324

 

 

$

565

 

 

$

262

 

 

$

12

 

 

$

2,163

 

 

(1)
Base commissions generally represent a percentage of the premium paid by an insured and are affected by fluctuations in both premium rate levels charged by insurance companies and the insureds’ underlying “insurable exposure units,” which are units that insurance companies use to measure or express insurance exposed to risk (such as property values, or sales and payroll levels) to determine what premium to charge the insured. Insurance companies establish these premium rates based upon many factors, including loss experience, risk profile and reinsurance rates paid by such insurance companies, none of which we control.
(2)
Fee revenues relate to fees for services other than securing coverage for our customers, fees negotiated in lieu of commissions, and F&I products and services.
(3)
Other supplemental commissions include additional commissions over base commissions received from insurance carriers based on predetermined growth or production measures. This includes incentive commissions and guaranteed supplemental commissions.
(4)
Profit-sharing contingent commissions are based primarily on underwriting results, but may also reflect considerations for volume, growth and/or retention.
(5)
Earned premium relates to the premiums earned in the Captives.
(6)
Investment income consists primarily of interest on cash and investments.
(7)
Other income consists primarily of other miscellaneous income.
(8)
Fees within Other reflect the elimination of intercompany revenues.
Schedule of Revenues Disaggregated by Geographic Area

The following table presents the revenues disaggregated by geographic area where our services are being performed:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

U.S.

 

$

1,006

 

 

$

918

 

 

$

2,105

 

 

$

1,916

 

U.K.

 

 

144

 

 

 

105

 

 

 

275

 

 

 

203

 

Republic of Ireland

 

 

12

 

 

 

11

 

 

 

24

 

 

 

22

 

Canada

 

 

11

 

 

 

10

 

 

 

19

 

 

 

16

 

Other

 

 

5

 

 

 

3

 

 

 

12

 

 

 

6

 

Total revenues

 

$

1,178

 

 

$

1,047

 

 

$

2,435

 

 

$

2,163

 
Schedule of Balances of Contract Assets and Contract Liabilities Arising from Contracts with Customers

The balances of contract assets and contract liabilities arising from contracts with customers as of June 30, 2024 and December 31, 2023 were as follows:

 

(in millions)

 

June 30, 2024

 

 

December 31, 2023

 

Contract assets

 

$

538

 

 

$

473

 

Contract liabilities

 

$

109

 

 

$

113