Segment Information

3 Months Ended

Mar. 31, 2021

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 most of its operations within the United States of America. International operations include, Retail operations in Bermuda, the Cayman Islands and Ireland, a National Programs operation in Canada, and a Wholesale Brokerage operation based in London, England. These operations earned $17.5 million and $3.9 million of total revenues for the three months ended March 31, 2021 and 2020, respectively. Tangible long-lived assets held outside of the United States as of March 31, 2021 and 2020 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, 2020. Intersegment revenues are eliminated.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables. The “Other” column includes any revenue 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, 2021
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	522,915	$	154,893	$	90,875	$	46,974	$	(381	)	$	815,276
Investment income	$	18	$	152	$	41	$	3	$	36		$	250
Amortization	$	18,833	$	6,875	$	2,397	$	1,388	$	—		$	29,493
Depreciation	$	2,758	$	2,147	$	644	$	381	$	1,526		$	7,456
Interest expense	$	22,621	$	4,128	$	4,253	$	821	$	(15,481	)	$	16,342
Income before income taxes	$	151,223	$	41,148	$	18,782	$	9,257	$	18,797		$	239,207
Total assets	$	7,210,499	$	3,398,682	$	1,787,033	$	483,920	$	(3,969,341	)	$	8,910,793
Capital expenditures	$	2,316	$	3,001	$	489	$	157	$	5,462		$	11,425

	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