Revenues

12 Months Ended

Dec. 31, 2024

Revenues [Abstract]

Revenues

NOTE 2 Revenues

The following tables present the revenues disaggregated by revenue source:

	For the year ended December 31, 2024
(in millions)	Retail		Programs		Wholesale Brokerage		Other(8)			Total
Base commissions(1)	$	1,874	$	924	$	483	$	1		$	3,282
Fees(2)		631		270		92		(1	)		992
Other supplemental commissions(3)		171		9		8		—			188
Profit-sharing contingent commissions(4)		44		95		27		—			166
Earned premium(5)		—		77		—		—			77
Investment income(6)		6		23		6		58			93
Other income, net(7)		3		2		—		2			7
Total Revenues	$	2,729	$	1,400	$	616	$	60		$	4,805

	For the year ended December 31, 2023
(in millions)	Retail		Programs		Wholesale Brokerage		Other(8)			Total
Base commissions(1)	$	1,692	$	736	$	440	$	—		$	2,868
Fees(2)		597		322		78		(2	)		995
Other supplemental commissions(3)		164		9		6		(1	)		178
Profit-sharing contingent commissions(4)		50		65		15		—			130
Earned premium(5)		—		28		—		—			28
Investment income(6)		1		12		2		37			52
Other income, net(7)		4		1		—		1			6
Total Revenues	$	2,508	$	1,173	$	541	$	35		$	4,257

	For the year ended December 31, 2022
(in millions)	Retail		Programs		Wholesale Brokerage		Other(8)			Total
Base commissions(1)	$	1,421	$	589	$	367	$	—		$	2,377
Fees(2)		546		298		69		(1	)		912
Other supplemental commissions(3)		138		16		5		—			159
Profit-sharing contingent commissions(4)		49		28		12		—			89
Earned premium(5)		—		26		—		—			26
Investment income(6)		—		1		—		6			7
Other income, net(7)		3		—		—		—			3
Total Revenues	$	2,157	$	958	$	453	$	5		$	3,573

(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 reflects the elimination of intercompany revenues.

Revenues Disaggregated by Geography

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

	For the year ended December 31,
(in millions)	2024		2023		2022
U.S.	$	4,140	$	3,730	$	3,333
U.K.		545		433		170
Republic of Ireland		48		45		38
Canada		40		35		23
Other		32		14		9
Total Revenues	$	4,805	$	4,257	$	3,573

Contract Assets and Liabilities

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

(in millions)	December 31, 2024		December 31, 2023
Contract assets	$	575	$	473
Contract liabilities	$	119	$	113

Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which have not yet been billed in our systems and are reflected in commissions, fees and other receivables in the Company's Consolidated Balance Sheets. The increase in contract assets over the balance as of December 31, 2023 is due to growth in our business and from businesses acquired in the current year.

Deferred revenue (contract liabilities) relates to payments received in advance of performance under the contract before the transfer of a good or service to the customer. Deferred revenue is reflected within accrued expenses and other liabilities for those to be recognized in less than 12 months and in other liabilities for those to be recognized more than 12 months from the date presented in the Company's Consolidated Balance Sheets.

As of December 31, 2024, deferred revenue consisted of $80 million as the current portion to be recognized within one year and $39 million in long term to be recognized beyond one year. As of December 31, 2023, deferred revenue consisted of $78 million as the current portion to be recognized within one year and $35 million in long-term deferred revenue to be recognized beyond one year.

During the 12 months ended December 31, 2024, 2023, and 2022, the amount of revenue recognized related to performance obligations satisfied in a previous period, inclusive of changes due to estimates, was approximately $39 million, $28 million, and $26 million, respectively. This consists of additional variable consideration received on our incentive and profit-sharing contingent commissions that required refinements in our estimates and variable consideration true-ups.

Other Assets and Deferred Cost

Incremental cost to obtain – The Company defers certain costs to obtain customer contracts primarily as they relate to commission-based compensation plans in the Retail segment, whereby the Company pays an incremental amount of compensation on new business. These incremental costs are deferred and amortized over a 15-year period. The cost to obtain balance within the Other assets caption in the Company’s Consolidated Balance Sheets was $119 million and $96 million as of December 31, 2024 and 2023, respectively. For the 12

months ended December 31, 2024 and December 31, 2023, the Company deferred $33 million and $27 million of incremental cost to obtain customer contracts, respectively and recorded an expense of $10 million and $7 million, respectively.

Cost to fulfill - The Company defers certain costs to fulfill contracts and recognizes these costs as the associated performance obligations are fulfilled. The cost to fulfill balance within the other current assets caption in the Company's Consolidated Balance Sheets was $145 million and $123 million as of December 31, 2024 and 2023, respectively. For the 12 months ended December 31, 2024 and December 31, 2023, the Company had net deferrals of $13 million and $7 million related to current year deferrals for costs incurred that relate to performance obligations yet to be fulfilled, net of the expense of previously deferred contract fulfillment costs associated with performance obligations that were satisfied in the period, respectively.