Financial Analysis

NOTE 5 Business Combinations During the six months ended June 30, 2026, the Company acquired all of the stock of three insurance intermediaries, purchased the assets and assumed certain liabilities of eight insurance intermediaries, and purchased three books of business (customer accounts) for a total of 14 acquisitions. Additionally, adjustments were recorded to the purchase price allocation of certain prior acquisitions completed within the last twelve months as permitted by ASC 805 Business Combinations. Based on the acquisition date and the complexity of the underlying valuation work, certain amounts included in the Companys Condensed Consolidated Financial Statements may be provisional and thus subject to further adjustments within the permitted measurement period, as defined in ASC 805. The recorded purchase price for all acquisitions includes an estimation of the fair value of liabilities associated with any potential earn-out provisions. Subsequent changes in the fair value of earn-out obligations are recorded in the Condensed Consolidated Statements of Income when incurred. The fair value of earn-out obligations is based on the present value of the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. On August 1, 2025, the Company completed the acquisition of Accession pursuant to the Agreement and Plan of Merger (the Merger Agreement). The Merger Agreement prov …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11 Legal and Regulatory Proceedings The Company is involved in numerous pending or threatened proceedings by or against Brown & Brown, Inc. or one or more of its subsidiaries that arise in the ordinary course of business. The damages that may be claimed against the Company in these various proceedings are in some cases substantial, including in certain instances claims for punitive or extraordinary damages. Some of these claims and lawsuits have been resolved; others are in the process of being resolved and others are still in the investigation or discovery phase. The Company will continue to respond appropriately to these claims and lawsuits and vigorously protect its interests. The Company continues to assess certain litigation and claims to determine the amounts, if any, that management believes will be paid as a result of such claims and litigation and, therefore, additional losses may be accrued and paid in the future, which could adversely impact the Companys operating results, cash flows and overall liquidity. The Company maintains third-party insurance policies to provide coverage for certain legal claims, in an effort to mitigate its overall exposure to unanticipated claims or adverse decisions. However, as (i) one or more of the Companys insurance carriers could take the position that portions of these claims are not covered by the Companys insurance, (ii) to the extent that payments are made to resolve claims and lawsuits, applicable insurance policy limit …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8 Long-Term Debt Long-term debt consisted of the following: (in millions) June 30, 2026 December 31, 2025 Current portion of long-term debt: Current portion of 5-year term loan facility, periodic interest and principal payments, SOFR plus up to 1.50 % , expires June 5, 2031 $ 13 $ Current portion of 5-year term loan facility, periodic interest and principal payments, SOFR plus up to 1.750 %, expires October 27, 2026 169 4.600 % senior notes, semi-annual interest payments, balloon due 2026 400 400 Current portion of 5-year revolving loan facility, periodic interest payments, SOFR plus up to 1.525 %, plus commitment fees up to 0.225 %, expires October 27, 2026 100 Current portion of 5-year term loan facility expires 2027 50 Total current portion of long-term debt 413 719 Long-term debt: 4.700 % senior notes, semi-annual interest payments, balloon due 2028 500 500 4.500 % senior notes, semi-annual interest payments, balloon due 2029 350 350 4.900 % senior notes, semi-annual interest payments, balloon due 2030 800 800 2.375 % senior notes, semi-annual interest payments, balloon due 2031 700 700 4.200 % senior notes, semi-annual interest payments, balloon due 2032 600 600 5.250 % senior notes, semi-annual interest payments, balloon due 2032 500 500 5.650 % senior notes, semi-annual interest payments, balloon due 2034 600 600 5.550 % senior notes, semi-annual interest payments, balloon due 2035 1,000 1,000 4.950 % senior notes, semi-annual interest payments, balloon due 2052 6 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the revenues disaggregated by revenue source: Three months ended June 30, 2026 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 657 $ 465 $ $ 1,122 Fees (2) 226 166 392 Other supplemental commissions (3) 31 6 37 Profit-sharing contingent commissions (4) 26 59 85 Earned premium (5) 18 18 Investment income (6) 7 7 8 22 Other income, net (7) Total revenues $ 947 $ 721 $ 8 $ 1,676 Three months ended June 30, 2025 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 483 $ 395 $ $ 878 Fees (2) 173 95 268 Other supplemental commissions (3) 31 10 41 Profit-sharing contingent commissions (4) 7 38 45 Earned premium (5) 17 17 Investment income (6) 3 7 25 35 Other income, net (7) 1 1 Total revenues $ 697 $ 563 $ 25 $ 1,285 Six months ended June 30, 2026 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 1,502 $ 891 $ $ 2,393 Fees (2) 446 325 771 Other supplemental commissions (3) 139 10 149 Profit-sharing contingent commissions (4) 56 126 182 Earned premium (5) 39 39 Investment income (6) 11 12 16 39 Other income, net (7) 2 2 4 Total revenues $ 2,156 $ 1,403 $ 18 $ 3,577 Six months ended June 30, 2025 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 1,099 $ 737 $ $ 1,836 Fees (2) 350 184 ( 1 ) 533 Other supplemental commissions (3) 128 13 141 Profit-sharing contingent commissions (4) 22 66 88 Earned premium (5) 36 36 Investment inc …

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NOTE 6 Goodwill The changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2026 are as follows: (in millions) Retail Specialty Distribution Total Balance as of December 31, 2025 $ 9,173 $ 5,914 $ 15,087 Acquisitions 27 4 31 Adjustments during measurement period (1) 79 27 106 Disposals ( 13 ) ( 13 ) Foreign currency translation adjustments ( 52 ) ( 13 ) ( 65 ) Balance as of June 30, 2026 $ 9,214 $ 5,932 $ 15,146 (1) Provisional estimates of fair value of acquired assets and liabilities are established at the time of each acquisition and are subsequently reviewed and finalized within the first year of operations subsequent to the acquisition date to determine the necessity for adjustments to goodwill. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 9 Leases Substantially all of the Company's operating lease right-of-use assets and operating lease liabilities represent real estate leases for office space used to conduct the Company's business that expire on various dates through 2041 . Leases generally contain renewal options and escalation clauses based upon increases in the lessors operating expenses and other charges. The Company anticipates that most of these leases will be renewed or replaced upon expiration, although not necessarily for the same amount of space. The balances and classification of operating lease right-of-use assets and operating lease liabilities within the Condensed Consolidated Balance Sheets is as follows: (in millions) June 30, 2026 December 31, 2025 Assets: Operating lease right-of-use assets Operating lease assets $ 274 $ 269 Total assets 274 269 Liabilities: Current operating lease liabilities Accrued expenses and other liabilities 59 62 Non-current operating lease liabilities Operating lease liabilities 248 243 Total liabilities $ 307 $ 305 The components of lease cost for operating leases were as follows: Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Operating leases: Lease cost $ 20 $ 16 $ 41 $ 30 Variable lease cost 4 2 5 2 Short-term lease cost 1 1 Operating lease cost 25 18 47 32 Sublease income ( 1 ) ( 1 ) ( 1 ) ( 1 ) Total lease cost net $ 24 $ 17 $ 46 $ 31 The weighted average remaining lease term and the weighted average discount rate …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In December 2025, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2025-11, ""Interim Reporting (Topic 270): Narrow-Scope Improvements."" This ASU clarifies the guidance in Accounting Standards Codification (ASC) Topic 270 - Interim Reporting , adding a comprehensive list of required interim disclosures and a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for interim periods within annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating these new disclosure requirements. In September 2025, the FASB issued ASU 2025-06, ""IntangiblesGoodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software."" This ASU was issued to modernize the accounting for software costs that are accounted for under Subtopic 350-40, including removing references to ""project stages"" and adding the ""probable-to-complete recognition threshold."" This ASU is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating these new accounting requirements. In November 2024, the FASB issued ASU 2024-03, ""Income Statement-Reporting Comprehensi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 3 Revenues The following tables present the revenues disaggregated by revenue source: Three months ended June 30, 2026 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 657 $ 465 $ $ 1,122 Fees (2) 226 166 392 Other supplemental commissions (3) 31 6 37 Profit-sharing contingent commissions (4) 26 59 85 Earned premium (5) 18 18 Investment income (6) 7 7 8 22 Other income, net (7) Total revenues $ 947 $ 721 $ 8 $ 1,676 Three months ended June 30, 2025 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 483 $ 395 $ $ 878 Fees (2) 173 95 268 Other supplemental commissions (3) 31 10 41 Profit-sharing contingent commissions (4) 7 38 45 Earned premium (5) 17 17 Investment income (6) 3 7 25 35 Other income, net (7) 1 1 Total revenues $ 697 $ 563 $ 25 $ 1,285 Six months ended June 30, 2026 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 1,502 $ 891 $ $ 2,393 Fees (2) 446 325 771 Other supplemental commissions (3) 139 10 149 Profit-sharing contingent commissions (4) 56 126 182 Earned premium (5) 39 39 Investment income (6) 11 12 16 39 Other income, net (7) 2 2 4 Total revenues $ 2,156 $ 1,403 $ 18 $ 3,577 Six months ended June 30, 2025 (in millions) Retail Specialty Distribution Other (8) Total Base commissions (1) $ 1,099 $ 737 $ $ 1,836 Fees (2) 350 184 ( 1 ) 533 Other supplemental commissions (3) 128 13 141 Profit-sharing contingent commissions (4) 22 66 88 Earned premium (5) 36 3 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"NOTE 12 Segment Information In conjunction with the acquisition of Accession in the third quarter of 2025, the Company aligned its business from three to two segments. As a result of the segment reorganization, the Company consolidated its Programs and Wholesale Brokerage segments into a new Specialty Distribution segment. As a result, beginning in the third quarter of 2025, the Company reports its financial results in the following two reportable segments: (i) the Retail segment, which provides a broad range of insurance products and services to commercial, public and quasi-public entities, and to professional and individual customers, and non-insurance risk-mitigating products through our F&I businesses; and (ii) the Specialty Distribution segment, which consists of our programs, wholesale brokerage and specialty businesses. Our programs businesses, which act as MGUs, provide targeted products and services designated for specific industries, trade groups, governmental entities and market niches, which are delivered to the insured directly, to affinity groups, through wholesale brokers or through a global network of independent agents, including Brown & Brown retail agents. Our wholesale brokerage businesses underwrite and place excess and surplus commercial and personal lines insurance, typically for specialized or hard-to-place types of risks, primarily through a global network of independent agents and brokers, including Brown & Brown retail agents. Our speci …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 14 Equity Under the authorization from the Companys board of directors, shares may be purchased from time to time, at the Companys discretion and subject to the availability of stock, market conditions, the trading price of the stock, alternative uses for capital, the Companys financial performance and other potential factors. These purchases may be carried out through open market purchases, block trades, accelerated share repurchase plans of up to $ 250 million each (unless otherwise approved by the board of directors), negotiated private transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. On October 22, 2025, the board of directors approved an additional $ 1,251 million increase to our existing share repurchase authorization, bringing our total remaining repurchase capacity at that time to approximately $ 1,500 million of the Company's outstanding common stock. On February 12, 2026, the Company entered into accelerated share repurchase agreement (""ASR"") with an investment bank to purchase an aggregate $ 250 million of the Company's common stock. The program ended on March 9, 2026 and during the period, the Company received a total of 3,574,890 shares of the Company's common stock. During the three months ended June 30, 2026 , the Company repurchased an additional 4,279,712 shares for $ 250 million. At June 30, 2026 , the remaining amount authorized by our board of directors for share …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing