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BRP posts Q3 organic growth of 26% YoY, continues M&A spree

BRP Group grew third quarter organic revenues by 26% year on year and lowered its EBITDA margins by 3 points to 14%, it disclosed Monday.

The company said it closed five partner acquisitions in the third quarter, which brought in around $63.9nb in revenue for the 12-month period pre-acquisition. After the end of the quarter, on September 30 , BRP sealed two additional acquisitions that generated approximately $63mn.

BRP has been acquisitive as of late. In July, the group bought FounderShield, a digital broker and managing general agency (MGA) business. Earlier in June, the publicly-traded retailer acquired Cape Cod-based agency RogersGray.

In December 2020, BRP priced a share sale worth almost $300mn to fund its acquisition of Burnham Benefits Insurance.


Revenues: Overall revenue increased by 106% year-over-year to $135.6mn, driven by growth in all operating segments, particularly the middle market, which grew 20% in 3Q. The “MGA of the Future” segment posted a 48% growth in the quarter to $25.9mn.

Margins: The broker posted an adjusted EBITDA margin of 14%, 3 points lower than the prior-year third quarter.

Operating expenses spiked by 110% to $152mn, accounting for a 106% increase in commissions, employee compensation and benefits, following the addition of 676 employees through organic hiring and 569 employees via acquisitions in the third quarter.

Net income: The broker reported net income growth of 28.1% to $11.5mn.

Commentary: BRP CEO Trevor Baldwin said: “It was another outstanding quarter for BRP in all facets of our operations, as we once again doubled our revenue on a year-over-year basis to $135.6 million, while generating another quarter of industry leading organic growth.”

“We continued to strongly execute on our deep pipeline of Partnership opportunities, completing two and announcing a third acquisition of Top 100 U.S. brokers in the past few months, further validating BRP Group as a premier destination for the top independent brokers in the industry.”

“In addition, our ‘MGA of the Future’ platform continued to grow rapidly as we continue to execute in multifamily and make progress on creating and launching new products,” he added.

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