BRP posts Q3 loss on higher expenses

BRP Group Inc. Monday reported a third-quarter net loss of $24.2 million as expenses took a toll even as revenue grew.

Organic revenue grew 26% from the year-earlier period, and overall revenue increased 106% to $135.6 million.

Expenses, however, weighed on results, as commissions, employee compensation and benefits more than doubled to $100.1 million from $48.5 million in last year’s third quarter.

Chief Financial Officer Brad Hale said on the company’s conference call with analysts on Monday after markets closed, that organic growth was helped by specialty and middle-market business, which grew 20%.

For the first nine months of the year, revenue increased 138% year-over-year to $408.1 million, while organic revenue growth was 24%.

BRP CEO Trevor Baldwin said the company’s 13 acquisitions this year added $165 million in annual revenue.

In September BRP announced its acquisition of Jacobson, Goldfarb & Scott Inc., a Holmdel, New Jersey-based specialty insurance broker and MGA with annual revenue of about $43.3 million. It was BRP’s largest acquisition this year.

BRP unit Baldwin Risk Partners LLC ranks 19th among the top 100 U.S. brokers, according to Business Insurance’s latest ranking.