Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

NOTE 12 Segment Information

Brown & Brown’s business is divided into three reportable segments: (i) the Retail segment, which provides a broad range of insurance products and services to commercial, public and quasi-public entities, and to professional and individual customers, and non-insurance risk-mitigating products through our F&I businesses; (ii) the Programs segment, which primarily acts as MGUs, provides professional liability and related package products for certain professionals, a range of insurance products for individuals, flood coverage, and targeted products and services designated for specific industries, trade groups, governmental entities and market niches, all of which are delivered through nationwide networks of independent agents, and Brown & Brown retail agents; and (iii) the Wholesale Brokerage segment, which markets and sells excess

and surplus commercial and personal lines insurance, primarily through independent agents and brokers, as well as Brown & Brown retail agents.

Brown & Brown conducts most of its operations within the United States of America. International operations include retail operations based in Bermuda, Canada, Cayman Islands, Republic of Ireland and the United Kingdom, managing general underwriter operations in Canada, France, Germany, Hong Kong, Italy, Malaysia, the Netherlands, United Arab Emirates and the United Kingdom and wholesale brokerage operations based in Belgium, Hong Kong, Italy and the United Kingdom. These operations earned $155 million and $127 million of total revenues for the three months ended September 30, 2024 and 2023, respectively. These operations earned $486 million and $374 million of total revenues for the nine months ended September 30, 2024 and 2023, respectively.

The accounting policies of the reportable segments are the same as those described in Note 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Intersegment revenues are eliminated.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables. The “Other” column includes any income and expenses not allocated to reportable segments, corporate-related items, including the intercompany interest expense charge to the reporting segment.

In the fourth quarter of 2023, the Company sold certain third-party claims administration and adjusting services businesses representing approximately 50% of the total revenues of the Services segment. As a result, beginning in fiscal year 2024, the Company operates three segments: Retail, Programs (formerly National Programs) and Wholesale Brokerage. Balances presented for the three and nine months ended September 30, 2024 have been recast to align with the three-segment structure.

	Three months ended September 30, 2024
(in millions)	Retail		Programs		Wholesale Brokerage		Other			Total
Total revenues	$	641	$	353	$	171	$	21		$	1,186
Investment income		2		6		2		21			31
Amortization		29		13		3		—			45
Depreciation		6		4		1		—			11
Interest expense		18		7		3		22			50
Income before income taxes		120		154		56		(13	)		317
Total assets		8,617		6,558		1,633		717			17,525
Capital expenditures		16		4		1		2			23

	Three months ended September 30, 2023
(in millions)	Retail		Programs		Wholesale Brokerage		Other			Total
Total revenues	$	602	$	305	$	150	$	11		$	1,068
Investment income		—		4		1		12			17
Amortization		28		10		3		—			41
Depreciation		5		3		1		1			10
Interest expense		22		8		3		15			48
Income before income taxes		112		115		24		(9	)		242
Total assets		8,101		3,884		1,489		509			13,983
Capital expenditures		9		3		1		1			14

	Nine months ended September 30, 2024
(in millions)	Retail		Programs		Wholesale Brokerage		Other			Total
Total revenues	$	2,093	$	1,010	$	472	$	47		$	3,622
Investment income		3		17		4		47			71
Amortization		86		36		9		—			131
Depreciation		15		11		3		4			33
Interest expense		56		23		9		59			147
Income before income taxes		488		439		145		(44	)		1,028
Total assets		8,617		6,558		1,633		717			17,525
Capital expenditures		44		14		2		2			62

	Nine months ended September 30, 2023
(in millions)	Retail		Programs		Wholesale Brokerage		Other			Total
Total revenues	$	1,926	$	870	$	412	$	23		$	3,231
Investment income		—		7		1		26			34
Amortization		84		32		9		(2	)		123
Depreciation		15		9		3		3			30
Interest expense		66		27		9		41			143
Income before income taxes		432		314		93		(48	)		791
Total assets		8,101		3,884		1,489		509			13,983
Capital expenditures		23		11		2		2			38