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

The following tables present the revenues disaggregated by revenue source:

 

 

 

Three months ended September 30, 2024

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

444

 

 

$

249

 

 

$

129

 

 

$

—

 

 

$

822

 

Fees (2)

 

 

158

 

 

 

67

 

 

 

26

 

 

 

—

 

 

 

251

 

Other supplemental commissions (3)

 

 

29

 

 

 

1

 

 

 

2

 

 

 

—

 

 

 

32

 

Profit-sharing contingent commissions (4)

 

 

8

 

 

 

7

 

 

 

12

 

 

 

—

 

 

 

27

 

Earned premium (5)

 

 

—

 

 

 

23

 

 

 

—

 

 

 

—

 

 

 

23

 

Investment income (6)

 

 

2

 

 

 

6

 

 

 

2

 

 

 

21

 

 

 

31

 

Other income, net (7)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total revenues

 

$

641

 

 

$

353

 

 

$

171

 

 

$

21

 

 

$

1,186

 

 

 

 

Three months ended September 30, 2023

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

412

 

 

$

189

 

 

$

121

 

 

$

(1

)

 

$

721

 

Fees (2)

 

 

150

 

 

 

87

 

 

 

21

 

 

 

—

 

 

 

258

 

Other supplemental commissions (3)

 

 

29

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

31

 

Profit-sharing contingent commissions (4)

 

 

9

 

 

 

12

 

 

 

6

 

 

 

—

 

 

 

27

 

Earned premium (5)

 

 

—

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

12

 

Investment income (6)

 

 

—

 

 

 

4

 

 

 

1

 

 

 

12

 

 

 

17

 

Other income, net (7)

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

Total revenues

 

$

602

 

 

$

305

 

 

$

150

 

 

$

11

 

 

$

1,068

 

 

 

 

Nine months ended September 30, 2024

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

1,440

 

 

$

696

 

 

$

369

 

 

$

—

 

 

$

2,505

 

Fees (2)

 

 

469

 

 

 

177

 

 

 

71

 

 

 

(1

)

 

 

716

 

Other supplemental commissions (3)

 

 

148

 

 

 

8

 

 

 

6

 

 

 

—

 

 

 

162

 

Profit-sharing contingent commissions (4)

 

 

30

 

 

 

58

 

 

 

22

 

 

 

—

 

 

 

110

 

Earned premium (5)

 

 

—

 

 

 

52

 

 

 

—

 

 

 

—

 

 

 

52

 

Investment income (6)

 

 

3

 

 

 

17

 

 

 

4

 

 

 

47

 

 

 

71

 

Other income, net (7)

 

 

3

 

 

 

2

 

 

 

—

 

 

 

1

 

 

 

6

 

Total revenues

 

$

2,093

 

 

$

1,010

 

 

$

472

 

 

$

47

 

 

$

3,622

 

 

 

 

Nine months ended September 30, 2023

 

(in millions)

 

Retail

 

 

Programs

 

 

Wholesale
Brokerage

 

 

Other (8)

 

 

Total

 

Base commissions (1)

 

$

1,297

 

 

$

543

 

 

$

336

 

 

$

—

 

 

$

2,176

 

Fees (2)

 

 

446

 

 

 

246

 

 

 

59

 

 

 

(3

)

 

 

748

 

Other supplemental commissions (3)

 

 

139

 

 

 

5

 

 

 

3

 

 

 

—

 

 

 

147

 

Profit-sharing contingent commissions (4)

 

 

40

 

 

 

35

 

 

 

13

 

 

 

—

 

 

 

88

 

Earned premium (5)

 

 

—

 

 

 

34

 

 

 

—

 

 

 

—

 

 

 

34

 

Investment income (6)

 

 

—

 

 

 

7

 

 

 

1

 

 

 

26

 

 

 

34

 

Other income, net (7)

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

Total revenues

 

$

1,926

 

 

$

870

 

 

$

412

 

 

$

23

 

 

$

3,231

 

 

(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 September 30,

 

 

Nine months ended September 30,

 

(in millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

U.S.

 

$

1,031

 

 

$

941

 

 

$

3,136

 

 

$

2,857

 

U.K.

 

 

133

 

 

 

106

 

 

 

408

 

 

 

309

 

Republic of Ireland

 

 

9

 

 

 

9

 

 

 

33

 

 

 

31

 

Canada

 

 

10

 

 

 

10

 

 

 

29

 

 

 

25

 

Other

 

 

3

 

 

 

2

 

 

 

16

 

 

 

9

 

Total revenues

 

$

1,186

 

 

$

1,068

 

 

$

3,622

 

 

$

3,231

 
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 September 30, 2024 and December 31, 2023 were as follows:

 

(in millions)

 

September 30, 2024

 

 

December 31, 2023

 

Contract assets

 

$

575

 

 

$

473

 

Contract liabilities

 

$

117

 

 

$

113