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Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information

NOTE 12  Segment Information

Brown & Brown’s business is divided into four reportable segments: (1) 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, (2) the National Programs Segment, which acts as an MGA, 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, (3) 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, and (4) the Services Segment, which provides insurance-related services, including third-party claims administration and comprehensive medical utilization management services in both the workers’ compensation and all-lines liability arenas, as well as Medicare Set-aside services, Social Security disability and Medicare benefits advocacy services and claims adjusting services.

Brown & Brown conducts all of its operations within the United States of America, except for a wholesale brokerage operation based in London, England, retail operations in Bermuda and the Cayman Islands, and a national programs operation in Canada. These operations earned $3.9 million and $3.4 million of total revenues for the three months ended March 31, 2020 and 2019, respectively. Long-lived assets held outside of the United States as of March 31, 2020 and 2019 were not material.

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, 2019. The Company evaluates the performance of its segments based upon revenues and income before income taxes. Inter-segment 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.

 

 

 

Three months ended March 31, 2020

 

(in thousands)

 

Retail

 

 

National

Programs

 

 

Wholesale

Brokerage

 

 

Services

 

 

Other

 

 

Total

 

Total revenues

 

$

447,489

 

 

$

128,412

 

 

$

77,698

 

 

$

44,452

 

 

$

444

 

 

$

698,495

 

Investment income

 

$

83

 

 

$

263

 

 

$

50

 

 

$

-

 

 

$

765

 

 

$

1,161

 

Amortization

 

$

16,287

 

 

$

6,365

 

 

$

2,349

 

 

$

1,390

 

 

$

—

 

 

$

26,391

 

Depreciation

 

$

2,036

 

 

$

1,905

 

 

$

431

 

 

$

351

 

 

$

1,298

 

 

$

6,021

 

Interest expense

 

$

21,798

 

 

$

4,682

 

 

$

1,711

 

 

$

1,091

 

 

$

(13,991

)

 

$

15,291

 

Income before income taxes

 

$

128,662

 

 

$

29,645

 

 

$

17,686

 

 

$

10,080

 

 

$

19,180

 

 

$

205,253

 

Total assets

 

$

6,375,532

 

 

$

3,054,411

 

 

$

1,514,243

 

 

$

475,168

 

 

$

(3,837,009

)

 

$

7,582,345

 

Capital expenditures

 

$

2,499

 

 

$

1,513

 

 

$

1,227

 

 

$

267

 

 

$

10,952

 

 

$

16,458

 

 

 

 

Three months ended March 31, 2019

 

(in thousands)

 

Retail

 

 

National

Programs

 

 

Wholesale

Brokerage

 

 

Services

 

 

Other

 

 

Total

 

Total revenues

 

$

389,231

 

 

$

109,560

 

 

$

70,509

 

 

$

49,492

 

 

$

488

 

 

$

619,280

 

Investment income

 

$

0

 

 

$

316

 

 

$

40

 

 

$

48

 

 

$

677

 

 

$

1,081

 

Amortization

 

$

15,444

 

 

$

6,596

 

 

$

2,849

 

 

$

1,303

 

 

$

—

 

 

$

26,192

 

Depreciation

 

$

1,624

 

 

$

1,590

 

 

$

404

 

 

$

284

 

 

$

2,133

 

 

$

6,035

 

Interest expense

 

$

21,153

 

 

$

5,354

 

 

$

1,327

 

 

$

872

 

 

$

(13,508

)

 

$

15,198

 

Income before income taxes

 

$

93,841

 

 

$

19,316

 

 

$

15,569

 

 

$

9,177

 

 

$

10,617

 

 

$

148,520

 

Total assets

 

$

5,773,290

 

 

$

2,852,824

 

 

$

1,292,406

 

 

$

480,108

 

 

$

(3,592,339

)

 

$

6,806,289

 

Capital expenditures

 

$

3,136

 

 

$

4,568

 

 

$

1,189

 

 

$

109

 

 

$

14,184

 

 

$

23,186