The Baldwin Insurance Group, Inc.

Greetings. Welcome to BRP Group Incorporated's second quarter 2023 earnings call. At this time, all participants are in a listen-only mode. If anyone should need operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Bonnie Bishop, Executive Director of Investor Relations. Thank you. You may begin.

Thank you, Operator. Welcome to the BRP Group's second quarter 2023 earnings call. Today's call is being recorded. Second quarter financial results, supplemental information, and Form 10-Q were issued earlier this afternoon and are available on the company's website at ir.baldwinriskpartners.com. Please note that remarks made today may include forward-looking statements subject to various assumptions, risks, and uncertainties. The company's actual results may differ materially from those contemplated by such statements. For a more detailed discussion, please refer to the note regarding forward-looking statements in the company's earning release and to our most recent Form 10-Q, both of which are available on the BRP website. During the call today, the company may also discuss certain non-GAAP financial measures. For a more detailed discussion of these non-GAAP financial measures and historical reconciliation to the most closely comparable GAAP measures, please refer to the company's earnings release and supplemental information, both of which have been posted on the company's website at ir.baldwinriskpartners.com. I will now turn the call over to Trevor Baldwin, Chief Executive Officer of BRP Group.

Good afternoon, and thank you for joining our second quarter earnings call. I'm joined this afternoon by Brad Hale, our Chief Financial Officer, Chris Wiebeck, our Chief Strategy Officer, and Bonnie Bishop, Executive Director of Investor Relations. BRP had an excellent second quarter, with broad-based strength on both the top and bottom lines across our segments. The power of our colleague and client franchise continues to show through in our results, with organic revenue growth of 22%, on the back of a difficult prior year comp of 24%, driving adjusted EBITDA growth of 45% to $61.6 million and representing a year-over-year margin increase of approximately 240 basis points to 21%. Total revenue grew 28%, and adjusted earnings per share of $0.27 was up 17% in the face of an approximate $13 million increase or 101% year-over-year increase in our cash interest expense in the quarter. Insurance advisory solutions achieved strong organic growth of 15%, continuing to benefit from outsized new business wins and rate and exposure tailwinds in certain areas. New business revenue wins increased 28%, and net new business revenue wins increased 50% for the quarter compared to the prior year. In June and July, we officially launched and announced three new centers of excellence in private equity, venture capital, and government contracting. These centers of excellence are built around insurance experts with deep experience in their field. Their talent and expertise can be tapped across the entire BRP platform to provide specialized and differentiated solutions to our clients. We expect specialization to be a key and growing component to our sustained organic growth. Underwriting capacity and technology solutions grew 36% organically, with the MG of the Future platform again performing exceptionally well, up 45%, with broad-based strength across the business and building underlying momentum that should accrue to continued outperformance on a go-forward basis. And Renner's growth was robust, we had our largest day ever for new business policies in June, which was already surpassed again in July, and our pipeline of new distribution partners remains incredibly strong. In homeowners, our builder program with QBE continues to outpace expectations, and the non-builder portfolio had its largest quarter ever with net written premium of 40% versus the first quarter and over 5x what we generated in the second quarter of 2022. Our commercial umbrella business also saw strong growth in the quarter as it continues to benefit from strong new business, renewal, and rate trends. On the new product front, we successfully secured capacity for a new high net worth focused homeowners program, which launched last week. and we also anticipate launching a new commercial habitational property product by the end of the third quarter. Main Street Insurance Solutions delivered organic growth of 20%, driven by continued strong performance at Westwood, our personal insurance platform embedded with many of the top home builders in the U.S., which has grown revenue rapidly since joining BRP last April on the back of durable new business trends higher attachment rates to new homes sold, and favorable rate dynamics. Overall, our business continues to perform exceptionally well with broad-based top-line strength and growing margin accretion trends that should accelerate in the coming quarters as we fully lap the previously concluded three-year talent and technology reinvestment cycle. I'd like to spend a minute focusing specifically on our investments in talent. We more than doubled our number of colleagues in 2021 and 2022, adding approximately 1,000 net new colleagues per year. By the end of the third quarter of this year, we will have largely absorbed the incremental run rate payroll expense from last year's hiring growth. And as these newer colleagues are ramping on our platform, their contributions are now beginning to show up in new business wins. We have now settled into a more normalized hiring pattern as evidenced by our hiring through July, adding fewer than 100 net new colleagues year-to-date compared to more than 600 net new colleagues in the prior year period. We expect our normalized hiring pace, growing contributions from colleagues onboarded in the past two years, and the completion of our three-year cycle of infrastructure investments will deliver significant operating leverage and greater scalability for our platform and will begin to contribute materially to accelerating margin accretion over the next two quarters and into the first half of 2024. Lastly, I'm pleased to welcome Satish Muthukrishnan to our Board of Directors. His extensive experience in digital and technology transformation at Ally Financial where he serves as chief information, data, and digital officer, will add tremendous value to BRP. Sathish chairs our newly created technology and cyber risk committee. I also want to thank Phil Casey, who recently retired from the board, for his contributions to BRP as a board member and as audit committee chair since our IPO. We are grateful for Phil's guidance, counsel, and dedication to BRP Group and our shareholders. I am incredibly proud of the continued strength of results our colleagues have delivered for our stakeholders. The grit and perseverance our colleagues exhibit day in and day out has enabled outstanding results for clients during a time of real challenge in pockets of the insurance marketplace. I want to thank our clients for their continued trust and confidence. The rate at which our clients continue to honor us with their renewals and the rate at which new clients choose to hire BRP over our competitors is the number one indication that the talent, technology, and platform we have invested in building over the past few years is enabling sustained outlier results. With that, I'll turn it over to Brad, who will detail our financial results.