BRP Q4 revenue up 16%; selling wholesale brokerage platform

BRP Group Inc., the parent company of brokerage Baldwin Risk Partners LLC, on Wednesday reported fourth-quarter 2023 revenue of $284.6 million, up 16% compared with the year-ago period in 2022.

The Tampa, Florida-based brokerage reported organic growth of 15% and a fourth-quarter loss of $62.5 million, compared with a net loss of $91.5 million in fourth-quarter 2022.

Trevor Baldwin, CEO of BRP Group, said on an earnings call with analysts Wednesday that BRP had reached a definitive agreement to sell its wholesale brokerage platform, Connected Risk Solutions, to Amwins Group Inc.

The transaction is expected to close March 1 and generate cash proceeds of $59 million, Mr. Baldwin said.

Mr. Baldwin said on the call that the broker’s insurance advisory solutions segment reported fourth-quarter organic revenue growth of 9%, while its underwriting, capacity and technology solutions business reported organic growth of 22% and the mainstreet insurance solutions segment reported 21% organic growth.

This compares with 11%, 25% and 29% growth, respectively, during the third quarter, according to company earnings supplement data.

For first-quarter 2024, Baldwin expects revenue between $370 million and $380 million and organic growth toward the upper end of its target 10% to 15% range, said Brad Hale, chief financial officer, speaking on the call.

For full-year 2024, Mr. Hale said the broker expects revenue to be in the range of $1.35 billion to $1.4 billion, with organic growth toward the upper end of the 10% to 15% range.

For full-year 2023, total revenue rose 24% to $1.2 billion and organic revenue growth was 19%.

The broker posted a net loss of $164 million for the year compared with a net loss of $76.7 million in 2022.