BRP Group Stock

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution company.

The company is delivering tailored insurance and risk management insights and solutions that give the company's Clients the peace of mind to pursue their purpose, passion and dreams. The company supports its Clients, Colleagues, Insurance Company Partners and communities through the deployment of vanguard resources, technology and capital to drive both organic and inorganic growth.

The company is innovating the industry by taking a holistic and tailored approach to risk management, insurance and employee benefits. The company's growth plan includes continuing to recruit, train and develop industry leading talent, continuing to add geographic representation, insurance product expertise and end-client industry expertise via the company's Partnership strategy, and continuing to build out the company's MGA of the Future platform, which delivers proprietary, technology-enabled insurance solutions to the company's internal Risk Advisors, as well as to a growing channel of external distribution partners. The company is a destination employer supported by an award-winning culture, powered by exceptional people and fueled by industry-leading growth and innovation.

The company represents over two million Clients across the United States and internationally. The company's nearly 4,000 Colleagues include approximately 700 Risk Advisors, who are fiercely independent, relentlessly competitive and 'insurance geeks'. The company has approximately 115 offices in 24 states, all of which are equipped to provide diversified products and services to empower the company's Clients at every stage through the company's three Operating Groups.

The company's core products include commercial property and casualty insurance, employee benefits insurance, personal lines insurance, wealth management and retirement services, and Medicare.

The company has relationships with leading commercial writers, as well as regional insurers who have a presence in the company's target markets. The company conducts commercial property and casualty business within all of its Operating Groups, which includes manufacturing the company's own proprietary products within the company's MGA of the Future platform. Products include commercial umbrella and management liability, with several additional commercial lines products in the company's existing product pipeline.

The company conducts employee benefits business within the company's Insurance Advisory Solutions and Mainstreet Insurance Solutions Operating Groups.

The company conducts personal lines business within all of the company's Operating Groups. The company's retail agency model, embedded technology, national distribution capabilities and ability to build proprietary products in the company's MGA of the Future platform uniquely position the company to execute on this strategy.

The company's specialties include risk management, employee benefits, and retirement plan consulting. The company advises on corporate retirement plans and executive benefits focused on employee retention and engagement. The company also provides comprehensive financial planning and wealth management services to high-net-worth individuals and families. The company conducts wealth management and retirement services within the company's Insurance Advisory Solutions Operating Group.

Medicare advisors within the company's Mainstreet Insurance Solutions Operating Group assist in determining optimal coverage and healthcare/doctor access based on an individual's healthcare needs and spending limitations.

Business Strategy

The company's business strategy is centered around using the results of outstanding service to Clients to reinvest the vast majority of retained earnings into future growth, which over time produces better and more sustainable results for all of the company's stakeholders, including the company's Clients, Colleagues, Insurance Company Partners, the communities in which the company works and lives, and the company's stockholders. For the company's Clients, its growth affords the company the ability to provide better advice and an expanded suite of insurance solutions. For the company's Colleagues, the company's growth provides expanded career and development opportunities. For the company's Insurance Company Partners, the company's growth facilitates expanded access to a more diversified universe of Clients and more distributed pools of risk. For the company's communities, the company's growth facilitates enhanced economic contribution, and the ability of the company's Colleagues to make charitable impacts.

The company has taken a two-pronged approach to growing its business, which includes investing meaningfully into the company's existing businesses to drive organic growth, and to drive inorganic growth via its Partnership strategy. In the company's MGA of the Future platform, the company continues to deliver proprietary and technology-enabled insurance solutions that provide the company's Advisors and select external distribution partners speed, ease of use, and certainty of execution, while also delivering BRP an enhanced share of the economics associated with the underlying insurance transaction.

Operating Groups

Effective in the first quarter of 2023, the company's business is divided into three Operating Groups: Insurance Advisory Solutions, Underwriting, Capacity & Technology Solutions and Mainstreet Insurance Solutions.

Insurance Advisory Solutions Operating Group ('IAS')

IAS provides expertly-designed commercial risk management, employee benefits and private risk management solutions for businesses and high-net-worth individuals, as well as their families. Risk management solutions typically involve the sale of a wide variety of both commercial and personal lines insurance products that mitigate risks for firms and individuals. Employee benefits solutions can include health plans, dental plans, and retirement accounts for firms and their employees. The company is privileged to have partnered with some of the highest quality independent insurance brokers across the country with vast and varied strategic capabilities and expertise. The company has been intentional in recognizing and elevating this talent across the organization to build world class industry-focused practice groups and product Centers of Excellence that can be leveraged by the entire firm.

Underwriting, Capacity & Technology Solutions Operating Group ('UCTS')

UCTS consists of three distinct businesses-the company's specialty wholesale broker business, the company's MGA of the Future platform, and as of the third quarter of 2023, the company's newly launched reinsurance brokerage business, Juniper Re. The company's specialty wholesale broker business, which is expected to be sold in the first quarter of 2024, delivers professionals, individuals and niche industry businesses expanded access to exclusive specialty markets, capabilities and programs requiring complex underwriting and placement. Through the company's MGA of the Future platform (representing approximately 90% of UCTS' revenue during 2023), the company manufactures proprietary, technology-enabled insurance products that are then distributed (in many instances via technology and/or API integrations) internally via the company's Risk Advisors across the company's other Operating Groups and externally via select distribution partners, with a focus on sheltered channels where the company's products deliver speed, ease of use and certainty of execution, an example of which is the company's national embedded renters insurance product sold at point of lease via integrations with property management software providers. As a prominent growth driver for BRP, the company has invested heavily in the expansion of the company's MGA of the Future product suite, which is consisted of more than 12 products across both commercial and personal lines, including new product launches in 2023 (high-net-worth homeowners, flood and commercial property products).

Mainstreet Insurance Solutions Operating Group ('MIS')

MIS offers personal insurance, commercial insurance, and life and health solutions to individuals and businesses in their communities, with a focus on accessing Clients via sheltered distribution channels, which include, but are not limited to, new home builders, realtors, mortgage originators/lenders, master planned communities, and various other community centers of influence. The company has invested deeply in talent, technology and capabilities across MIS, including in Westwood's homeowners solutions that are embedded in many of the top home builders in the U.S., the national expansion of the company's distribution footprint through the company's National Mortgage and Real Estate Center, and enhanced digital capabilities focused on improving the Advisor and Client experience. MIS also offers consultation for government assistance programs and solutions, including traditional Medicare, Medicare Advantage and Affordable Care Act, to seniors and eligible individuals through a network of primarily independent contractor agents.

Competition

The company actively competes with Aon plc, Marsh & McLennan Companies, Inc., Willis Towers Watson plc, Arthur J. Gallagher & Co. and Brown & Brown Inc.; private company participants, such as AssuredPartners, Inc., Hub International Limited and USI, Inc.; and in the company's personal lines business, Goosehead Insurance, Inc.

Clients and Insurers

The company's Clients are highly diversified and include individuals, professionals, businesses, including those in niche industries, and specialty insurers.

The company has relationships with a significant number of Insurance Company Partners who contribute to the commissions and fees the company generates. While the company does not have a dependency on any one Insurance Company Partner, the company derives a significant portion of its core commissions and fees from a limited number of Insurance Company Partners.

Seasonality

The insurance brokerage market is seasonal and the company's results of operations are somewhat affected by seasonal trends. The company's Adjusted EBITDA and Adjusted EBITDA Margins are typically highest in the first quarter and lowest in the fourth quarter (year ended December 2023). This variation is primarily due to fluctuations in the company's revenues, while overhead remains consistent throughout the year. The company's revenues are generally highest in the first quarter due to a higher degree of first quarter policy commencements and renewals in certain IAS and MIS lines of business, such as employee benefits, commercial and Medicare. In addition, a higher proportion of the company's first quarter revenue is derived from its highest margin businesses.

Regulation

The Health Insurance Portability and Accountability Act ('HIPAA') and regulations adopted pursuant to HIPAA require the company to maintain the privacy of protected health information that the company collects on behalf of Insurance Company Partners and employer-sponsored health plans, implements measures to safeguard such information and provides notification in the event of certain breaches in the privacy or confidentiality of such information. The use and disclosure of certain data that the company collects from consumers is also regulated by the Gramm-Leach-Bliley Act ('GLBA') and state statutes implementing GLBA, which generally require brokers to provide Clients with notice regarding how their non-public personal health and financial information is used and the opportunity to 'opt out' of certain disclosures before sharing such information with a third party, and which generally require safeguards for the protection of personal information.

In addition, the company's portfolio of companies includes several registered investment advisors ('RIAs'), each of which are federally registered with the SEC. The company's portfolio includes a limited purpose broker dealer ('LPBD'), registered with the SEC, and the Financial Industry Regulatory Authority ('FINRA'). These areas of the company's financial services business are also subject to rules formulated by the SEC under both the Investment Advisers Act of 1940 (the '40 Act') and the Exchange Act, as well as by state securities regulators under applicable state law. Through a combination of the SEC, FINRA, the 40 Act and the Exchange Act, the company's RIAs and the LPBD are heavily regulated in the areas of duties to Clients, disclosures, communications, contracting, fee sharing, oversight and audit.

As a publicly-traded company, the company is required to file certain reports, and are subject to various marketing restrictions, among other requirements, in connection with the Exchange Act and SEC regulations.

History

The company was founded in 2011. It was incorporated in the state of Delaware in 2019. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024.