Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

NOTE 12 Segment Information

Brown & Brown’s business is divided into four 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 National Programs segment, which primarily 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; (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; and (iv) 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 England, Bermuda, the Cayman Islands, The Republic of Ireland and Northern Ireland, National Programs operations in Canada and England, and Wholesale Brokerage operations based in England, Italy and Belgium. These operations earned $126.0 million and $92.1 million

of total revenues for the three months ended September 30, 2023 and 2022, respectively. These operations earned $373.5 million and $132.8 million of total revenues for the nine months ended September 30, 2023 and 2022, respectively.

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, 2022. 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 September 30, 2023
(in millions)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	586.0	$	278.2	$	149.6	$	42.4	$	11.5		$	1,067.7
Investment income	$	0.5	$	3.8	$	0.6	$	—	$	11.7		$	16.6
Amortization	$	27.0	$	10.1	$	2.7	$	1.3	$	—		$	41.1
Depreciation	$	4.9	$	2.9	$	0.7	$	0.3	$	1.6		$	10.4
Interest expense	$	21.3	$	8.6	$	3.1	$	0.3	$	14.2		$	47.5
Income before income taxes	$	110.8	$	111.7	$	23.8	$	4.8	$	(8.8	)	$	242.3
Total assets	$	7,762.1	$	3,942.8	$	1,489.6	$	279.8	$	508.7		$	13,983.0
Capital expenditures	$	8.9	$	3.3	$	0.7	$	0.2	$	0.7		$	13.8

	Three months ended September 30, 2022
(in millions)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	528.2	$	231.4	$	126.3	$	41.1	$	0.6		$	927.6
Investment income	$	—	$	0.3	$	0.1	$	—	$	0.8		$	1.2
Amortization	$	28.2	$	11.4	$	2.6	$	1.3	$	—		$	43.5
Depreciation	$	3.9	$	4.6	$	0.7	$	0.4	$	1.7		$	11.3
Interest expense	$	22.8	$	10.2	$	3.2	$	0.5	$	4.8		$	41.5
Income before income taxes	$	112.2	$	69.7	$	35.4	$	4.7	$	(4.0	)	$	218.0
Total assets	$	7,128.1	$	4,476.3	$	1,366.5	$	289.1	$	398.3		$	13,658.3
Capital expenditures	$	4.7	$	3.3	$	0.7	$	0.3	$	5.1		$	14.1

	Nine months ended September 30, 2023
(in millions)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	1,874.2	$	791.2	$	412.0	$	129.9	$	23.6		$	3,230.9
Investment income	$	1.0	$	7.0	$	1.2	$	—	$	24.6		$	33.8
Amortization	$	81.6	$	30.2	$	8.0	$	3.9	$	—		$	123.7
Depreciation	$	13.8	$	8.8	$	2.1	$	1.2	$	4.6		$	30.5
Interest expense	$	64.9	$	27.3	$	8.6	$	1.0	$	40.3		$	142.1
Income before income taxes	$	426.2	$	303.8	$	92.4	$	15.8	$	(47.2	)	$	791.0
Total assets	$	7,762.1	$	3,942.8	$	1,489.6	$	279.8	$	508.7		$	13,983.0
Capital expenditures	$	22.7	$	10.8	$	2.1	$	0.9	$	1.9		$	38.4

	Nine months ended September 30, 2022
(in millions)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Total revenues	$	1,582.3	$	619.3	$	341.6	$	128.8	$	—		$	2,672.0
Investment income	$	—	$	0.6	$	0.2	$	—	$	1.0		$	1.8
Amortization	$	69.8	$	27.9	$	6.7	$	3.9	$	(0.1	)	$	108.2
Depreciation	$	9.1	$	10.9	$	2.0	$	1.2	$	5.1		$	28.3
Interest expense	$	69.9	$	22.8	$	10.0	$	1.6	$	(8.5	)	$	95.8
Income before income taxes	$	378.8	$	187.9	$	94.8	$	18.0	$	2.3		$	681.8
Total assets	$	7,128.1	$	4,476.3	$	1,366.5	$	289.1	$	398.3		$	13,658.3
Capital expenditures	$	8.4	$	14.2	$	1.5	$	0.8	$	7.5		$	32.4