BRP reports Q4 revenue increase

BRP Group Inc. reported fourth-quarter 2021 organic revenue growth of 18%, as overall revenue for the quarter rose 129% year over year to $159.2 million.

Operating expenses including commissions, employee compensation and benefits, however, rose 134.5% for the quarter to $121.5 million as the broker posted a net loss for the quarter of $44.4 million.

Speaking on the BRP earnings call Tuesday after the close of markets, BRP CEO Trevor Baldwin said the broker added more than $206 million in revenue through 16 acquisitions during 2020. The company also hired more than 800 new employees to bring the total year-end headcount to about 2,800, he added.

BRP completed six acquisitions during the fourth quarter, according to its earnings statement.

Chief Financial Officer Brad Hale said on the call that BRP’s 18% fourth-quarter organic growth included double-digit organic growth in all four business segments: middle market, specialty, main street and Medicare.

Full-year 2021 revenue increased 135% year over year to $567.3 million, while full-year organic revenue growth was 22%.

Full-year expenses rose 129.8%, leading to a net loss of $58.1 million for the full year.

The broker’s 22% full-year organic growth included double-digit growth in the middle market, specialty, and main street units, Mr. Hale said.

BRP expects organic growth in the current quarter to be between the midpoint and the top end of its target range of 10% to 15%, Mr. Hale said. For all of 2022, the broker expects organic growth to be “modestly above” the 10% to 15% target range.

Mr. Hale also said BRP expects to add $100 million to $150 million in revenue through acquisitions during 2022.

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

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