Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

NOTE 15 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 in Bermuda, Canada, Cayman Islands, the Netherlands, Republic of Ireland and the United Kingdom; Programs operations in Canada, France, Germany, Hong Kong, Italy, Malaysia, the Netherlands, Singapore, United Arab Emirates and the United Kingdom; and Wholesale Brokerage operations based in Belgium, Hong Kong, Italy and the United Kingdom. These operations earned $665 million, $527 million and $240 million of total revenues for the years ended December 31, 2024, 2023 and 2022, respectively.

The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its segments based upon revenues and income before income taxes. Intersegment revenues are eliminated.

The Company's chief operating decision maker ("CODM"), the president and chief executive officer, regularly receives total revenue, income before income taxes and earnings before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables ("EBITDAC"). The metrics are used to review operating trends, to perform analytical comparisons between periods and to monitor budget to actual variances. The Company's CODM does not use segment assets to make resource allocation decisions, therefore it has not been presented.

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. Balances presented for the years ended December 31, 2023 and 2022 have been recast to align with the three-segment structure.

Summarized financial information concerning the Company’s reportable segments is shown in the following table.

	Year Ended December 31, 2024
(in millions)	Retail			Programs			Wholesale Brokerage		Total
Total segment revenues	$	2,729		$	1,400		$	616	$	4,745
Reconciliation of revenues
Other (1)										60
Total consolidated revenues									$	4,805
Less: (2)
Employee compensation and benefits		1,462			450			322
Other operating expenses		449			290			92
(Gain)/loss on disposal		(3	)		(28	)		—
Depreciation and amortization		140			62			15
Interest		71			30			11
Change in estimated acquisition earn-out payables		8			(7	)		1
Segment Income before income taxes	$	602		$	603		$	175	$	1,380
Reconciliation of income before income taxes
Other (1)										(77	)
Consolidated Income before income taxes									$	1,303

	Year Ended December 31, 2023
(in millions)	Retail			Programs			Wholesale Brokerage		Total
Total segment revenues	$	2,508		$	1,173		$	541	$	4,222
Reconciliation of revenues
Other (1)										35
Total consolidated revenues									$	4,257
Less: (2)
Employee compensation and benefits		1,336			425			284
Other operating expenses		421			247			85
(Gain)/loss on disposal		(3	)		(141	)		—
Depreciation and amortization		131			55			14
Interest		85			36			12
Change in estimated acquisition earn-out payables		1			—			20
Segment Income before income taxes	$	537		$	551		$	126	$	1,214
Reconciliation of income before income taxes
Other (1)										(68	)
Consolidated Income before income taxes									$	1,146

	Year Ended December 31, 2022
(in millions)	Retail			Programs			Wholesale Brokerage			Total
Total segment revenues	$	2,157		$	958		$	453		$	3,568
Reconciliation of revenues
Other (1)											5
Total consolidated revenues										$	3,573
Less: (2)
Employee compensation and benefits		1,126			376			239
Other operating expenses		377			223			70
(Gain)/loss on disposal		(8	)		1			3
Depreciation and amortization		115			53			12
Interest		96			33			13
Change in estimated acquisition earn-out payables		(26	)		(11	)		(2	)
Segment Income before income taxes	$	477		$	283		$	118		$	878
Reconciliation of income before income taxes
Other (1)											(2	)
Consolidated Income before income taxes										$	876

(1) "Other" includes any income and expenses not allocated to reportable segments and corporate-related items.

(2) Significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.