The Baldwin Insurance Group, Inc.

Greetings and welcome to the BRP Group Inc. fourth quarter 2023 earnings call. At this time, all participants are in a listen-only mode. The brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Bonnie Bishop. Thank you. You may begin.

Thank you, Operator. Welcome to the BRP Group's fourth quarter 2023 earnings call. Today's call is being recorded. Fourth quarter and full year financial results, supplemental information, and Form 10-K 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 earnings release and to our most recent form 10-K, 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 us to discuss our fourth quarter results reported earlier today. I'm joined this afternoon by Brad Hale, Chief Financial Officer, and Bonnie Bishop, Executive Director of Investor Relations. For the fourth quarter, the contributions from the significant investments we made in 2021 and 2022 continued to manifest themselves in a meaningful way. as we generated organic growth of 15%, our 15th straight quarter of double-digit organic growth as a public company. For the year, we achieved industry-pacing organic growth of 19%, including double-digit organic growth across all three of our segments, grew adjusted EBITDA by $54 million, a 27% year-over-year increase, and expanded our margin by approximately 50 basis points. As a result of the investments we've made over the past few years, our business remains well positioned to continue delivering double-digit organic growth, ongoing margin expansion, rapid growth of free cash flow from operations, and continued strengthening of our balance sheet. In IES, we generated organic growth of 9% in the fourth quarter, in line with expectations we previewed on our third quarter earnings call. As forecasted, while growth was robust in most areas of our IAS platform, we saw select weakness in profit-sharing revenue and project-based work in sectors such as construction, where increased client sensitivity to continued higher interest rates and insurance rate increases had an impact in Q4. Despite the headwinds in Q3 and Q4, IAS organic growth for the full year was 12%. in line with our long-term target of 10 to 15 percent there will always be puts and takes to the underlying momentum of our in-client industry sectors but early signs are pointing to an ebbing of these negative impacts that persisted during the second half of 2023. job starts in our construction practice are seeing a normalization as we start the year and our clients in general across the IIS business are exhibiting resiliency consistent with the continued growth seen in the broader U.S. economy. Our UCTS segment grew organic revenue 22% in the fourth quarter due to continued strength in our multifamily, homeowners, and commercial umbrella programs, which has persisted into the first quarter. And the commercial property and high net worth homeowners products we launched in late 2023 continue to gain momentum. UCTF's organic revenue growth through the year was 31%, thanks to broad-based strength across our platform and due to the significant growth in our homeowners platform in 2023. Our MIS segment grew revenue 21% organically through the quarter and 23% through the year, thanks to continued strength from Westwood and a growing contribution from our national mortgage and real estate operation. Additionally, investments in our sales and distribution capabilities at Westwood have led to three more top 35 builders signing with us in the last six months. We expect sustained strength in new business, along with higher attachment rates and meaningful insurance rate to drive continued momentum for Westwood in 2024. As a part of our efforts to streamline operations, increase margin, and focus on our core businesses, we have executed a definitive agreement for the sale of our wholesale brokerage platform, Connected Risk Solutions, to Amlins. We expect the transaction to close on March 1st, generating cash proceeds of approximately $59 million. In addition, this transaction is expected to be neutral to 2024 adjusted EPS and and accretive to both 2024 organic growth and adjusted EBITDA margin. As the nation's largest independent wholesale broker, Amwinds has been one of our trusted and preferred trading partners for many years, and they will be an outstanding home for Connected's clients and colleagues. Brad will cover the anticipated financial impact of this transaction in a few moments. As we move forward with our strategic roadmap, We are deepening our focus on efficiency and execution through our recent work to simplify and optimize our operating model and business operations. To that end, in January, we announced the promotions of Dan Galbraith, formerly Chief Operating Officer, and Jim Roche, formerly Chief Insurance Innovation Officer, to co-presidents of BRP Group with shared firm-wide responsibility for BRP's continued performance and operations. Dan will also serve as CEO of Retail Brokerage Operations, which includes the Insurance Advisory Solutions segment, and the Medicare and Main Street personal insurance businesses in the Main Street Insurance Solutions segment. Jim will also serve as CEO of the businesses in the Underwriting Capacity and Technology Solutions segment, as well as of Westwood, which resides in the Main Street Insurance Solutions segment. Dan and Jim have delivered exceptional results and made significant contributions to BRP's growth and evolution since joining the firm. I am excited for their contributions in these roles as they broaden their responsibilities to drive our continued success as we build the transcendent broker of the future. In summary, we are proud of the strong results we delivered in 2023. We are executing daily on numerous strategies to drive continued industry-leading organic growth, expanding margin, and growth of our free cash flow. all while building on our unique culture and status as a destination for our industry's most talented professionals. I want to thank our nearly 4,000 colleagues for their unwavering dedication to all our stakeholders during a challenging year in the insurance marketplace. While growth across the economy still appears resilient, dislocation persists in large portions of the insurance marketplace, impacting many of our clients. I extend my gratitude to our clients for their continued trust in our ability to help them navigate these conditions and deliver innovative and thoughtful solutions. With that, I will turn it over to Brad, who will detail our financial results.