Segment Information

6 Months Ended

Jun. 30, 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 $19.1 million and $9.2 million of total revenues for the three months ended June 30, 2021 and 2020, respectively. These operations earned $36.6 million and $16.1 million of total revenues for the six months ended June 30, 2021 and 2020, respectively. Tangible long-lived assets held outside of the United States as of June 30, 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 income and expenses not allocated to reportable segments, corporate-related items, including the intercompany interest expense charge to the reporting segment.

	Three months ended June 30, 2021
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	401,099	$	176,274	$	104,591	$	44,887	$	501		$	727,352
Investment income	$	17	$	134	$	44	$	—	$	34		$	229
Amortization	$	19,002	$	6,862	$	2,364	$	1,318	$	—		$	29,546
Depreciation	$	2,805	$	2,364	$	680	$	364	$	2,588		$	8,801
Interest expense	$	22,604	$	2,869	$	4,051	$	718	$	(13,957	)	$	16,285
Income before income taxes	$	70,481	$	66,716	$	26,392	$	7,665	$	15,055		$	186,309
Total assets	$	7,393,285	$	3,570,836	$	1,844,315	$	447,265	$	(3,897,806	)	$	9,357,895
Capital expenditures	$	1,371	$	3,652	$	612	$	352	$	7,730		$	13,717

	Three months ended June 30, 2020
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	312,562	$	154,667	$	88,853	$	42,930	$	(206	)	$	598,806
Investment income	$	41	$	129	$	46	$	—	$	117		$	333
Amortization	$	16,453	$	6,866	$	2,032	$	1,390	$	—		$	26,741
Depreciation	$	2,147	$	2,093	$	467	$	353	$	1,108		$	6,168
Interest expense	$	21,303	$	5,195	$	2,594	$	1,042	$	(16,325	)	$	13,809
Income before income taxes	$	36,829	$	48,344	$	24,708	$	6,436	$	13,084		$	129,401
Total assets	$	6,487,850	$	3,398,709	$	1,574,931	$	464,905	$	(3,725,337	)	$	8,201,058
Capital expenditures	$	3,228	$	1,532	$	555	$	206	$	13,959		$	19,480

	Six months ended June 30, 2021
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	924,014	$	331,167	$	195,466	$	91,861	$	120		$	1,542,628
Investment income	$	35	$	286	$	85	$	3	$	70		$	479
Amortization	$	37,835	$	13,737	$	4,761	$	2,706	$	—		$	59,039
Depreciation	$	5,563	$	4,511	$	1,324	$	745	$	4,114		$	16,257
Interest expense	$	45,224	$	6,997	$	8,304	$	1,539	$	(29,438	)	$	32,626
Income before income taxes	$	221,704	$	107,864	$	45,173	$	16,922	$	33,852		$	425,515
Total assets	$	7,393,285	$	3,570,836	$	1,844,315	$	447,265	$	(3,897,806	)	$	9,357,895
Capital expenditures	$	3,687	$	6,653	$	1,101	$	509	$	13,192		$	25,142

	Six months ended June 30, 2020
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	760,051	$	283,080	$	166,551	$	87,382	$	238		$	1,297,302
Investment income	$	124	$	392	$	97	$	—	$	882		$	1,495
Amortization	$	32,740	$	13,231	$	4,381	$	2,780	$	—		$	53,132
Depreciation	$	4,183	$	3,998	$	898	$	704	$	2,406		$	12,189
Interest expense	$	43,101	$	9,877	$	4,305	$	2,133	$	(30,316	)	$	29,100
Income before income taxes	$	165,491	$	77,990	$	42,394	$	16,516	$	32,264		$	334,655
Total assets	$	6,487,850	$	3,398,709	$	1,574,931	$	464,905	$	(3,725,337	)	$	8,201,058
Capital expenditures	$	5,727	$	3,045	$	1,782	$	473	$	24,911		$	35,938