BRP Group Inc., the parent company of broker Baldwin Risk Partners LLC, reported first-quarter revenue of $330.4 million, up 36% from a year earlier, in its earnings statement after markets Monday.
The Tampa, Fla.-based brokerage said organic growth for the quarter was 23%, compared with 16% in the first quarter of 2022, as it reported a first-quarter net loss of $25.9 million, compared with a profit of $44.8 million USD during the first quarter of 2022.
CEO Trevor Baldwin, speaking on the company’s earnings call Tuesday night, said it was the highest growth in the first quarter since the company’s 2019 IPO.
Expenses increased 60.9% to $326.8 million, including a 50.2% increase in commissions, employee compensation and benefits to $230.9 million.
Managing Director of Investor Relations Bonnie Bishop, who spoke on the call, said that as of January 23, 2023, Baldwin had moved to three operating segments from four. The legacy Medicaid segment was merged into the Mainstreet segment, while the legacy middle market segment was renamed Insurance Advisory Solutions and the legacy specialty segment was renamed Underwriting, Capacity & Technology Solutions.
The broker̵7;s Insurance Advisory Solutions segment had first quarter organic revenue growth of 14% while the Underwriting, Capacity & Technology Solutions business had first quarter organic growth of 56% and the Mainstreet Insurance Solutions segment had 20% organic growth for the first quarter of 2023, all according to the numbers in the company’s earnings presentation.
Mr Baldwin, speaking on mergers and acquisitions, said the broker “does not currently expect to complete any significant partnerships in 2023” as it focuses on reducing leverage and paying down debt.
Chief Financial Officer Brad Hale said on the call that second-quarter organic growth expectations are now in the mid-teens, compared with previous guidance of 10% to 15%. He also said the brokerage now expects full-year revenue in the range of $1.16 billion to $1.19 billion, up from previous guidance of $1.14 billion to $1.17 billion.