v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

NOTE 12 Segment Information

In conjunction with the acquisition of Accession in the third quarter of 2025, the Company aligned its business from three to two segments. As a result of the segment reorganization, the Company consolidated its Programs and Wholesale Brokerage segments into a new Specialty Distribution segment. As a result, beginning in the third quarter of 2025, the Company reports its financial results in the following two 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; and (ii) the Specialty Distribution segment, which consists of our programs, wholesale brokerage and specialty businesses. Our programs businesses, which act as MGUs, provide targeted products and services designated for specific industries, trade groups, governmental entities and market niches, which are delivered to the insured directly, to affinity groups, through wholesale brokers or through a global network of independent agents, including Brown & Brown retail agents. Our wholesale brokerage businesses underwrite and place excess and surplus commercial and personal lines insurance, typically for specialized or hard-to-place types of risks, primarily through a global network of independent agents and brokers, including Brown & Brown retail agents. Our specialty business offers solutions across affinity and administrative services, captives, reinsurance, travel/accident, warranty, and life & health.

The balances presented for the three months and six months ended June 30, 2025 have been recast to align with the two-segment structure.

Brown & Brown conducts most of its operations within the U.S. International retail operations include businesses based in Bermuda, Canada, Cayman Islands, India, the Netherlands, Republic of Ireland and the United Kingdom; specialty distribution operations are in Belgium, Canada, France, Germany, Hong Kong, Italy, Malaysia, the Netherlands, Singapore, United Arab Emirates and the United Kingdom. These international operations earned $227 million and $212 million of total revenues for the three months ended June 30, 2026 and 2025, respectively and $491 million and $442 million of total revenues for the six months ended June 30, 2026 and 2025, respectively.

The Company's chief operating decision maker ("CODM"), the president and chief executive officer, regularly receives segment information on total revenue, organic revenue growth, the growth in Contingents, income before income taxes and earnings before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables ("EBITDAC"). The metrics are used to review operating trends, to perform analytical comparisons between periods and to monitor budget to actual variances. The Company's CODM does not use segment assets to make resource allocation decisions; therefore, they have not been presented.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables.

 

 

 

Three months ended June 30, 2026

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Total

 

Total segment revenues

 

$

947

 

 

$

721

 

 

$

1,668

 

Reconciliation of revenues

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

8

 

Total consolidated revenues

 

 

 

 

 

 

 

$

1,676

 

Less: (2)

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

514

 

 

 

273

 

 

 

 

Other operating expenses

 

 

174

 

 

 

146

 

 

 

 

(Gain)/loss on disposal

 

 

1

 

 

 

—

 

 

 

 

Depreciation and amortization

 

 

77

 

 

 

50

 

 

 

 

Interest expense

 

 

5

 

 

 

9

 

 

 

 

Change in estimated acquisition earn-out payables

 

 

(30

)

 

 

(10

)

 

 

 

Segment Income before income taxes

 

$

206

 

 

$

253

 

 

$

459

 

Reconciliation of income before income taxes

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

(76

)

Consolidated Income before income taxes

 

 

 

 

 

 

 

$

383

 

 

 

 

Three months ended June 30, 2025

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Total

 

Total segment revenues

 

$

697

 

 

$

563

 

 

$

1,260

 

Reconciliation of revenues

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

25

 

Total consolidated revenues

 

 

 

 

 

 

 

$

1,285

 

Less: (2)

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

385

 

 

 

202

 

 

 

 

Other operating expenses

 

 

120

 

 

 

98

 

 

 

 

(Gain)/loss on disposal

 

 

—

 

 

 

—

 

 

 

 

Depreciation and amortization

 

 

41

 

 

 

19

 

 

 

 

Interest expense

 

 

15

 

 

 

9

 

 

 

 

Change in estimated acquisition earn-out payables

 

 

9

 

 

 

2

 

 

 

 

Segment Income before income taxes

 

$

127

 

 

$

233

 

 

$

360

 

Reconciliation of income before income taxes

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

(49

)

Consolidated Income before income taxes

 

 

 

 

 

 

 

$

311

 
(1)
"Other" includes any income and expenses not allocated to reportable segments and corporate-related items.
(2)
Significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

 

 

Six months ended June 30, 2026

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Total

 

Total segment revenues

 

$

2,156

 

 

$

1,403

 

 

$

3,559

 

Reconciliation of revenues

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

18

 

Total consolidated revenues

 

 

 

 

 

 

 

$

3,577

 

Less: (2)

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

1,128

 

 

 

546

 

 

 

 

Other operating expenses

 

 

354

 

 

 

281

 

 

 

 

(Gain)/loss on disposal

 

 

—

 

 

 

—

 

 

 

 

Depreciation and amortization

 

 

159

 

 

 

100

 

 

 

 

Interest expense

 

 

12

 

 

 

17

 

 

 

 

Change in estimated acquisition earn-out payables

 

 

(19

)

 

 

(15

)

 

 

 

Segment Income before income taxes

 

$

522

 

 

$

474

 

 

$

996

 

Reconciliation of income before income taxes

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

(81

)

Consolidated Income before income taxes

 

 

 

 

 

 

 

$

915

 

 

 

 

Six months ended June 30, 2025

 

(in millions)

 

Retail

 

 

Specialty Distribution

 

 

Total

 

Total segment revenues

 

$

1,604

 

 

$

1,050

 

 

$

2,654

 

Reconciliation of revenues

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

35

 

Total consolidated revenues

 

 

 

 

 

 

 

$

2,689

 

Less: (2)

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

833

 

 

 

401

 

 

 

 

Other operating expenses

 

 

241

 

 

 

189

 

 

 

 

(Gain)/loss on disposal

 

 

1

 

 

 

—

 

 

 

 

Depreciation and amortization

 

 

85

 

 

 

39

 

 

 

 

Interest expense

 

 

30

 

 

 

18

 

 

 

 

Change in estimated acquisition earn-out payables

 

 

3

 

 

 

4

 

 

 

 

Segment Income before income taxes

 

$

411

 

 

$

399

 

 

$

810

 

Reconciliation of income before income taxes

 

 

 

 

 

 

 

 

 

Other (1)

 

 

 

 

 

 

 

 

(72

)

Consolidated Income before income taxes

 

 

 

 

 

 

 

$

738

 
(1)
"Other" includes any income and expenses not allocated to reportable segments and corporate-related items.
(2)
Significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.