BRP Group Inc., the parent company of brokerage Baldwin Risk Partners LLC, reported Q3 2022 organic revenue growth of 28% and revenue for the quarter of $259.4 million, up 91% from Q3 2021.
However, losses increased by 89.9% to $46.7 million from Q3 2021.
Commissions, employee compensation and benefits increased 95.8% to $195.9 million while total operating expenses rose 89.4% to $289.2 million from Q3 2021.
The broker’s mid-market segment had organic growth of 17% compared to 11% in the second quarter; The specialty segment had organic growth of 53%, unchanged from the second quarter; Mainstreet segment 23% compared to 33% in the second quarter; and the Medicare segment 11%, down from 23% in the second quarter, according to the broker’s finance.
Speaking on BRP’s earnings call on Monday after markets closed, BRP CEO Trevor Baldwin said the organic growth numbers show that “the investments we’ve made in our business are starting to pay off.
“We continue to be encouraged by the positive underlying momentum we see across all segments of the business.”
Chief Financial Officer Brad Hale said on the call that fourth-quarter organic growth expectations are in the high-teens, which should equate to annual organic growth of about 20%.
Mr Hale added that while BRP does not plan to issue regular guidance going forward, the broker’s “preview” of 2023 “currently” included an organic growth forecast at the upper end of the broker’s range and expectations of 10% to 15%. of $1.14 billion to $1.17 billion of annual revenue.
Baldwin Risk Partners is 19th among the top 100 US brokerages, according to Business insurances latest ranking.