BRP Group Inc., the parent company of brokerage Baldwin Risk Partners LLC, on Tuesday reported steep increases in organic and total revenue in the fourth quarter as it ended at $1 billion in annual revenue.
Looking ahead, the Tampa, Florida-based brokerage’s top executive said it will likely focus on reducing debt rather than mergers and acquisitions in 2023 as higher interest rates hit the M&A sector.
BRP, which went public in 2019, reported $246 million in revenue in the fourth quarter, up 54.6% over the same period last year. On an organic basis, which excludes acquisitions and other factors, revenue increased 26%, BRP said in its earnings statement.
The brokerage reported a net loss of $91.5 million for the quarter, compared with a loss of $44.4 million in the 2021 period.
For the full year, BRP reported $980.7 million in revenue, up 72.9% over 2021, and a net loss of $76.7 million, compared to a loss of $58.1 million a year earlier.
In April 2022, BRP completed the acquisition of Westwood Insurance Agency, a distribution platform focused on personal lines and BRP’s largest acquisition to date. The number of employees at BRP has grown to nearly 4,000, compared with 500 at the time of the IPO, CEO Trevor Baldwin said on a conference call with analysts late Tuesday.
BRP will likely focus on organic growth over acquisitions in 2023, Baldwin said. The M&A market is in transition, he said.
“The reality is that the cost of capital is increasing in a meaningful way. We have yet to see that fully reflected in valuations and as a result many of the larger, higher performing companies are choosing not to enter the market,” Baldwin said.