BRP revenue increases 94% in Q2

BRP Group Inc., the parent company of broker Baldwin Risk Partners LLC, reported second-quarter 2022 organic revenue growth of 24% and revenue for the quarter of $232.5 million, up 94% from second-quarter 2021.

Second-quarter 2022 net income was $16.6 million compared with a loss of $20.4 million in second-quarter 2021, according to the broker's earnings statement after markets Tuesday.

Commissions, employee compensation and benefits rose 94.1% to $172.85 million while total operating expenses jumped 55.37% to $207.02 million from first-quarter 2021.

The broker’s middle-market segment had organic growth of 11%, the specialty segment had organic growth of 53%, the Mainstreet segment 33% and the Medicare segment 23%, according to the broker’s financials.

Speaking on the BRP earnings call Tuesday after the close of markets, BRP CEO Trevor Baldwin said May and June growth at Westwood Insurance Agency of more than 20% has exceeded initial expectations. On April 29, BRP completed the acquisition of Westwood, a personal lines-focused distribution platform and BRP’s largest acquisition to date.

Chief Financial Officer Brad Hale said on the call that expectations for third-quarter organic growth are in the high teens with revenues of approximately $230 million.

Mr. Hale added that BRP is “slightly increasing” its guidance for full-year organic growth to the high teens and will offer additional guidance in the future.

BRP unit Baldwin Risk Partners LLC is 18th among the top 100 U.S. brokers, according to Business Insurance’s latest ranking.