BRP revenue increases 59% in Q1
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BRP Group Inc., the parent company of broker Baldwin Risk Partners LLC, reported first-quarter 2022 organic revenue growth of 16% and revenue for the quarter of $242.8 million, up 59% from first-quarter 2021.
First-quarter 2022 net income of $44.8 million was up 43.1% from the first quarter of 2021.
Commissions, employee compensation and benefits jumped 72.2% to $153.8 million from first-quarter 2021.
The broker’s middle-market segment had organic growth of 13%, the specialty segment had organic growth of 31%, the Mainstreet segment 12% and the Medicare segment 26%, according to the presentation.
Speaking on the BRP earnings call Tuesday after the close of markets, BRP CEO Trevor Baldwin said the broker’s organic growth was the highest first-quarter rate achieved since BRP’s initial public offering.
He added, however, that the broker is “now currently preparing for a recessionary economic environment later this year.”
BRP completed one acquisition during the first quarter with acquired revenue of $81.8 million, with a goal of acquired revenue between $100 million and $150 million for the year, Mr. Baldwin said.
BRP also added more than 370 employees through organic hiring, bringing its total headcount to more than 3,300, Mr. Baldwin said.
On April 29, BRP completed the acquisition of Westwood Insurance Agency, its largest acquisition to date, which will more than double BRP’s Mainstreet segment, Mr. Baldwin said.
Chief Financial Officer Brad Hale said on the call that expectations for the second quarter are for revenue of about $220 million and organic growth in the high teens. For all of 2022, organic growth is expected to be in the mid to high teens, Mr. Hale said.
BRP unit Baldwin Risk Partners LLC is 19th among the top 100 U.S. brokers, according to Business Insurance’s latest ranking.
