BRP Group Posts 91% Revenue Growth, but Still Saw Loss in Q3

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BRP Group, the parent company of the national brokerage known as Baldwin Risk Partners, announced a near-doubling of revenue for the third quarter of 2022 over this time last year, but it still saw a net loss of $47 million for the quarter.

In its Q3 earnings call this week, the Tampa-based, publicly traded company’s leadership said that the firm has continued its expansion, seeing 91% revenue growth over this time a year ago, to $259 million.

Trevor Baldwin

“For the third quarter, we generated exceptional results as evidenced by accelerating double-digit organic growth across our platform, which showcases the continued client demand for our innovative solutions at a time of growing uncertainty in the business and economic environment,” said Trevor Baldwin, chief executive officer of BRP Group.

The net loss followed a $24 million loss in Q2 of $25 million. Compared with Q3 of 2021, the company reported a positive net income of $14.7 million.

Baldwin did not say what produced the losses for the quarter, but he did note that Hurricane Ian, which hit southwest Florida Sept. 28, will likely be the costliest insured loss for the industry in Florida’s history. He also said the reinsurance market for property insurers was proving to be one of the most difficult on record, but BRP is well-positioned to adjust to that.

BRP Group said it is an independent brokerage and insurance distribution firm, with 1.2 million clients. Founded in 2011, the firm and its subsidiaries have grown rapidly in recent years through acquisitions of brokerages and agencies. The company also offers benefits products, captive programs, a managing general agency program, and home insurance products.

In the third quarter, despite the net loss, the firm “is evidencing early signs that investments we have made in our business are beginning to show returns,” Baldwin said in the earnings call. “Our home insurance product roll out continues to meaningfully impact our organic growth results.”

A recording of the call can be accessed here, on the BRP website. Financial highlights are here.

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