Brown & Brown, Inc. (BRO) Earnings Call Transcript & Summary

Good morning, and welcome to the Brown & Brown, Inc. Investor Day. Today's presentations are being recorded. Please note that certain information discussed during these presentations, including information contained in the slide presentation posted in connection with this Investor Day and including answers given in response to questions, may relate to future results and events or otherwise be forward-looking in nature. Such statements reflect our current views with respect to future events, including those related to the company's operations and financial results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended within the same provisions of the securities laws. Actual results or events in the future are subject to a number of risks and uncertainties and may differ materially from those currently anticipated or desired or referenced in any forward-looking statements made as a result of factors. Such factors include those risks and uncertainties identified from time to time in the company's reports filed with the Securities and Exchange Commission and other factors that the company may not have currently identified or quantified. Additional discussion of these and other factors affecting the company's business and prospects as well as additional information regarding forward-looking statements is contained in the slide presentation posted in connection with this Investor Day and in the company's filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In addition, there are certain non-GAAP financial measures used in today's presentations. A reconciliation of any non-GAAP financial measures to the most comparable GAAP financial measure can be found in the slide presentation posted in connection with this Investor Day on the company's website at bbinsurance.com by clicking on Investor Relations and then Calendar of Events. Thank you.

Good morning, everyone, and welcome to Brown & Brown's 2023 Investor Day. We've not had one of these in 5 years. It's on -- can you hear me?

I'm on. Why don't we just do it? Let's switch. You want to just introduce the people?

Yes, we can do that.

All right. All right. So I just want to make sure that everybody knew kind of what we're going to do this morning. We're going to have presentations by our operating leaders. And at the end of each one of those that run divisions, there will be time for Q&A and they'll take the Q&A time and at the end as well. Having said that, I also wanted to introduce a couple of people that are in the room that you may or may not have had a chance to meet. We have 3 Board members here at this table here in the front in the right is Mr. Jim Hunt. He is our Chairman of the Audit Committee and has been on the journey with us for a long time and has provided great insights to us. He came from a background working with a small mouse called Disney. So we're very pleased about. Our second Board member and independent -- lead independent director is Palmer Proctor, at the far table over here. Palmer Proctor lives in Atlanta and is a banker, and he has been on the team for a long time as well, and provides incredible insight and is part of a group of individuals that we -- a number of people that are in Atlanta that are members and we appreciate everything that he's done and will do for the organization. And our newest -- one of our newest Board members are sitting over here to the right, and his name is Paul Krump. And Paul Krump is from North Dakota. And he went to work for a small company called Chubb 42 years ago and just recently retired and has been a friend and a partner for a long time and just joined us in July as a Board member, and we're so excited that he could be here. So thank you, Paul, for that. The only other thing that I'd like to say before we begin is there is somebody that I would like to acknowledge that I would be remiss if I didn't. And this person has been a partner and a value creator in this firm from the very beginning. So if we could just take a moment and if we could have CC Brown, our mother stand up please. Let's give her a round of a applause. So I like to say and I know Hyatt likes to say and Kellam, our brother, and Barrett behind me that we probably wouldn't be here the way we are today without her. So thank you very much, mom, for that, and it's been a great ride and lots more to come. Having said that, there's lots to talk about today, and we're excited that you're here. I want to talk a little bit about some of the things that you already know, but I'd like to expand on a couple of things maybe you don't. And so we, as an organization, want to be the leading global provider of insurance solutions for our customers. So if you think about it, most organizations say it's all about the customer, and we agree it's all about the customer, but it really starts with teammates. And if you don't have the right teammates, you can't keep the customers. And so fundamentally, we are a culture that has teammates at the center of the organization. Having said that, we, as you know, have experienced and enjoyed a long-term track record of successfully organically and acquiring businesses to grow our business. So organic and inorganic growth. We are very blessed to have a very experienced team of which you're going to meet some newer people that maybe you haven't seen before, but that are integral parts to our success, some on that are already up here and some that will be up here later today. The other thing that I find very interesting is we are a diversified firm. And a lot of people in the investment community, I believe, think of Brown & Brown solely as a retail broker. And we are 60% or 58% of our business is retail brokerage, but we still have 42% that is not retail brokerage. And so many other firms, actually, we don't do this, but many other firms actually combine their wholesale business and their program business. So you don't see the difference between the growth. And actually, I might go one step further. And as an investor, if you didn't see where the actual divisions performed and you saw the performance of our business over the last 1, 3, 5 years or more, then my question to you is, would you look at it differently? I don't want you to not look at us as a retail broker because that's the engine of our business. But what I want you to think about is, are you not valuing properly some of the other businesses? And I would actually say there might be some things that you would learn today, particularly about our wholesale -- not only our wholesale business, but our national programs business that would actually surprise you. Fundamentally also, and before I talk about this slide, as you know, we are conservative financially. What does that mean? That means that we invest in our business and then we pay down the debt. So I think of it like a credit card. We borrowed a lot of money last year. We're aggressively paying it down. When the right opportunity comes again, we're going to actually do that. What is the right opportunity? And Scott Penny will talk about how we think about acquisitions later, but we talk about what's cultural fit that makes sense financially. And we ask a lot of questions upfront to determine are those people the right people to join with us. If they're not, they can still have a good business, and we can just say no, or they can say no to us. Usually, when we're involved in the transaction and we meet with people, they are either attracted to us and we are attracted to them or we drift apart. That's usually the case because there's differences between strategic buyers, there's differences between private equity buyers. They're all these things, but that's an important distinction. You think about what we've done over 84 years at Brown & Brown, and I believe that -- well, not only do I believe, but we are very proud of what we have built. But what we have done is expand the capabilities and services that we can provide to our customer base. So there are people in the room that have owned Brown & Brown stock and out in web land for a long time. So in our mind, long holders of our stock are not 3 years, long holders of stock are 10, 15, 20-plus years. And if you think about it in that period of time, the transition from a small and middle-sized broker to an individual -- a firm that can provide capabilities to every sized firm, both domestically and internationally, and that's where we are. We pick our spots, as you know. We are predominantly a commission-driven firm. What is good about commission-driven firms? Commission-driven firms, typically, as opposed to fee-driven firms, you can have a better margin profile, right? And so in this, and I said this about our divisions, but 58% retail, 24% national programs, 13% wholesale and 5% services. We're going to talk some more in a moment about the ownership structure and why we're different. But ultimately, when you think about Brown & Brown, everybody says that they have a different culture, and they do, but do they live it? Do they breathe it? Does it just emanate out of the organization and does it attract people to them? We believe that is the case at Brown & Brown. So when somebody says, why are you different? What we usually say, so everybody understands, is big companies actually are heartless and soulless because they really don't care. And unfortunately, the reason many big companies, which we don't believe we're a big company, is get that way is because the leadership of those firms loses their way. And then the Board fires the leadership and they bring in an outside leader, particularly someone from a consulting firm who may not know the actual business. And then that individual starts to implement radical change. Radical change would be things like synergies, which is a nice way of saying they're going to lay a lot of people off. And by doing that, they actually are viewed by the contingency of people that work there as heartless and soulless. That is not Brown & Brown. So why are we different? We have teammates. We don't have employees. What's the difference? There's a big difference at Brown & Brown. Personally, I don't get caught up in titles. We are teammates. That means we win together and we lose together. So when everybody walked in today and there was Tess and Arly were standing there and maybe helping you with your name tag. At the reception desk, there's a lady that works there. You may have seen her with short black hair. Her name is Wanda Hooks. Wanda Hooks has worked at Brown & Brown for 40 years as the Director of First Impression. She's pumped on life to come in every day and say hello to you. The teammate of the Year Award in this building is called the Wanda Hooks award, all right? So that kind of goes to show you we have teammates. We don't have employees. We are all about athletic teams. We think we are these very competitive individual teams under this umbrella called Brown & Brown. And so as I like to say, I have a couple of kids that play competitive soccer or football, if you're familiar with the pond. And the answer is, if we already have 2 good center backs. And a center-back shows up, we'll put the center back somewhere else. They can play wing, they can play midfield. We put them in attack. We don't care. We want the best athletes on the field. Second, we have leaders, we don't have managers. What's the definition of manager? I'd like for you to envision a large ostrich egg, and I want you to envision a man sitting on that egg. That man is warming the egg. That's a manager. They're waiting for something to happen. Leaders are the point of the spear. That's a woman or a man who is driving the business forward, who's prepared to take calculated risks and investments in the business and when it doesn't work, they put their hand up and say, it didn't work and they make the right changes and they go forward. Finally, in my opinion, the most important distinguishing characteristic is internal ownership. So not only are we unlike most of all the investments that you have invested in because we have 21% insider ownership. But number two, over 63% of all of our teammates in the United States own at least a share of stock through an employee stock purchase plan, and that's a filed term with the SEC that I wanted to change to have, say, teammates stock purchase plan. So as you know, we have a way all teammates can participate, all 16,000. It's the lower of 2 strike dates. It is actually August 1 of last year and July 31 of this year, you take 15% off that number. If you were a teammate and you participated this year, which meaning this last year, it just came through and you put $1 in or a maximum that you can put in at $21,250. And you had sold the stock on day 1, which were not encouraging, you can do whatever you want as a teammate, 41% return, sorry, 31%. I get excited about it. 31%, last year was better, right? Okay. So what does that mean? When I walk into an office, whether it's in London and it can be the senior people on Mike's team, Mike Bruce or his assistant or in Seattle or whatever the director of first impressions when I walk in, this is usually how it works. Hey, are you doing? And I always say, hello, and many times I've met the lady or the man, they'd say, what's up with the stock? I know that he or she owns shares of stock. So we have an ownership culture. So I would encourage each of you because you've probably already done this. When you go back to your office, I'd like you to put a screen on a sort, and this is the sort I'd like you to look at. I'd like you to look at businesses that have more than $3 billion of revenue. They have more than a $15 billion market cap -- and they have more than a $15 billion market cap and more than a 15% insider ownership. You're going to get a number that's less than 26. So I don't know exactly what that's going to turn out today, but it's going to be less than 26. We're one of them. And what you're going to find, I believe, is you're going to find long-term thinking. So we don't manage the business quarter-to-quarter now. The analysts want to know quarter-to-quarter. And some of you, not many of you, but some of you out there as investors do get excited about the quarterly changes, the margins down here, the margins up, the growth rate here -- we don't think of it that way. All right. We report every 13 weeks. We have a scorecard. We understand, but we think about it a year, 3 years, 5 years, 10 years, 15 years. So what I want each of you to think about, particularly if you're probably under the age of 55 for just a moment, is can you follow Brown & Brown for the next 15 years. And the answer is a lot of people don't think that way. And we do because we're going to be doing the same thing 15 years from now, mortgage is going to be a lot bigger and we're going to be a lot better. And so we don't think quarter-to-quarter. And so that's our definition of -- no, we don't define long-term hold is 3 years. I know some of you do, and that's okay. It's a matter of perspective. That's your reality. It's all reality, too. But the answer is that's not long for us. There are people in the room that have had the stock since 1993 that are not at Brown & Brown, meaning investors. So the final thing is this, we think about profitable growth. And it's interesting because as you know in your industry, you're very sensitive sometimes to these models and the valuation and the margin and what's going to happen next quarter and all this other stuff. And the important thing that I want you to understand is the number of growth opportunities for us to invest in this business are enormous. And there will be times where we buy businesses that might have a slightly lower margin profile than ours and some that will be a slightly higher margin profile than ours. But at the end of the day, we believe that they fit culturally, make sense financially and they can improve and to add value to our business. One and one does not make 2. It wakes 3 or 4 or 5. We also believe there's going to be enormous consolidation continuing in the business over the next 3 to 7 years, and you say, why did you pick that and I say, I think that's an intermediate time horizon. That's all. So what differentiates us? And I could go through all of these things, but what I want you to know is this, we're a decentralized sales and service business. That does not mean that behind the scenes that we don't standardize certain deliverables, IT, finance, internal audit, things like that. That's different. But the individual offices dictate what they go after, the people they hire, the services they provide. We have a suite of services and sometimes those services are not provided from an office -- the individual office that is going after the business. So we're leveraging the capabilities across the business today better than we ever have. And so that goes back to a performance-based culture, member of the team concept. If you don't like to be charted, if you don't like to see how you do against others, you probably wouldn't like to work at Brown & Brown because we're a meritocracy. Sometimes people don't know what that means. The meritocracy is simply defined as someone rises based on her or his merits. So if you have actually all the people in the room here today and everybody out in web land, and you chart everybody's performance last year against everybody else's performance. You're going to have some top performers. And inevitably, you're going to have some lower performers. And no one in this room believes their average. And so that usually stimulates thought and excitement and hopefully, a performance culture. So we believe it's all about talented teammates. We are a meritocracy. We are accountable and disciplined. A lot of people have always said, well, why are your margins higher than everybody else's? And the answer is because we're disciplined. And people say, well, that's easy to say. And the answer is no. It's actually true. We actually do the little things, the things that are really boring that don't sound like a big deal, we do them really well, maybe better than most. And it translates into high performance. The other thing that I find remarkable is this, if I'm on your side, I think about cash flow. I think about what -- how much of every dollar converts into cash. I'm not talking about EPS. And as we all know, GAAP earnings as they continue to modify how GAAP is, it's further and further from the actual real cash earnings. So if that's the case, what do you have to invest at the end of the day. And so interestingly enough, I know you know this, but if you look at the standard of the publicly traded peer group, our cash conversion rate is about double the peer group. So depending on the way you look at it, you could either say we're actually operating like an $8 billion company or maybe the others are actually operating as a company that's half their size. It doesn't matter in perspective. All I know is if we're converting $0.24 or $0.25 and they're converting $0.12, I like our odds on that. So we really have 4 core philosophies -- operating philosophies. We're in the people recruiting and enhancing business. I cannot stress that enough. We are always recruiting. We are always recruiting. We're in the selling and servicing of insurance business, which is usually the third one. We're in the moneymaking business, number two. We're not a nonprofit. We write insurance for a lot of nonprofits. We actually support our nonprofits in the communities. We're very community-minded. Over 90% of our offices are involved and support nonprofits in their local communities. But the answer is, if we can't make an appropriate margin, we're not going to do it. And then finally, we're in the delivering of innovative solutions with the kind of a wrapper around that, that we don't want to make a big mistake. And a big mistake would be a large failed acquisition or something like that. So Andy and his team and others, Gray, Rob Mathis, others have put in controls in place that allow us to operate this dynamic organization in a way that we feel is one, protected, but two, fosters entrepreneurial spirit. I'm just going to touch on this because I talked a little bit about decentralized sales and service model. You can look at this. I'm not going through this. But what I want you to know is in a local office, wherever it is, in upstate New York or in San Antonio, Texas, that local office is hiring the people. They're picking the kinds of business they go after. It could be school boards, it could be contractors, it could be housing authorities, public entities, whatever, and then they invest in that business. We are actually -- we invest behind winners. If you show you can grow your business organically and through acquisition, we put our chips behind those people. So we really operate, as you know, in 3 segments: the SME space, the middle market and large accounts. I said earlier, that's primarily a commission-driven business. We have now capabilities to compete at all levels against any firm that you can name in the space. How did that happen? Let's take the name or the sizes of the acquisitions away. And I just want to let everybody look at this for a moment and think about the capabilities and what this did for our organization starting in 2001, we acquired a business in upstate New York called Riedman, okay? That got us into 13 other states other than Brown & Brown. Middle market retail business, great business, based in Rochester, New York. Hall, we really got into the binding authority business in our wholesale business then. We acquired Arrowhead and -- Arrowhead is $110 million of revenue. We had $180 million of revenue in programs. They did programs better than we did, okay? It's interesting that you see. That was a big day. And it's interesting, you noticed there's 2 people here that are from Arrowhead running big businesses 12, 11 years later. Acquired Beecher Carlson, we got into the big account space in property and casualty, right, we got them the flood business and some additional public entity business. We acquired Hays, upper middle market P&C and unbelievable benefits capabilities. We acquired a couple of businesses that aren't on here, which were like at the time, things called SBA and Pacific Resources, where they're going after 2,500 live groups and up in the medical space and the nonmedical space. We acquired special risk. We got into Canada in 2020. We acquired O'Leary in '21 in Ireland. We acquired GRP, Orchid and BdB in '22. The point is there are capabilities that we have today that you might not actually recognize we have. You probably -- all of you probably know that, but there is somebody out there that doesn't. And so we've been kind of quietly kind of plotting along, increasing the capabilities of Brown & Brown, and we invest that money, that $0.24 for each dollar in really 3 ways. We do acquisitions. We do internal investments. And we return it to shareholders. And so we're really proud that we've increased our dividends for 29 years, but we don't have a very high dividend yield because we think we can invest the money more in a better way and drive more value than actually paying out in dividends. We'll buy stock back sometimes if the stock is not appropriately valued. Internal investments, and that's basically saying we're investing, we're going to be proactive and opportunistic and get good people who fit culturally and/or acquisitions. So you already know about the performance of the company and something that we're proud of. But I look forward now for you to think and hear more about the capabilities in each of our individual divisions. So now I'd like to turn it over to Barrett Brown, who runs our retail business.

Thank you very much. Good morning, and welcome to Daytona Beach on a sunny day. It's nice to see some familiar faces in the room. We'll start with Retail. We've been on a journey, and you've heard elements from Powell. I want to talk a little bit about my personal journey and how it relates because a simple thing about leadership is we all know what we know based off what we've seen and done up to today. Our leadership team is built with operators. And everyone has sat in multiple seats and grown through those seats and contributed to the change that equals what we are today. I started my insurance journey 28 years ago as a commercial property and casualty underwriter with the Chubb group of insurance companies, had the opportunity to work in New York and Texas and in California. And then transition to the agency broker side with Brown & Brown. Most people thought I started here in Daytona, I did not. I started in Phoenix, Arizona, at a time when our entire organization had less than $200 million in revenue, all segments. And we had about 50 teammates in retail in the entire West Coast. So I've had the opportunity to sit in seats, see a lot of change, see the opportunities where we need to grow to be able to deliver for our customers and hopefully contribute to that change and help us get where we are today. And that's everyone rowing in the same direction. Change is good. Change can be very exciting. It's all about how you insert change and how you stack LEGOs and how you communicate with your team and how you enable. We are all about localized leadership in retail in our organization. So some of the things you're going to hear me say -- I'm going to sound a little redundant from Powell because we bleed it. Something about our retail organization as we talk to potential new teammates because recruiting is the lifeblood, continued enhancement is all about our culture. It's either magnetic, attraction or it doesn't seem like the right fit, and that's okay. Nothing wrong with that. Something that's really important around change is that cadence at which we insert it, how we communicate it and understand what we've done to get here. We touch every single customer profile in industry segment and line of coverage that you can think of in the insurance business, and we do it at a very high level. Now it's not by mistake. If you look at Retail 15 to 20 years ago, we were up fairly well-known, small, middle market insurance agent or broker. And in many segments in the communities that we serve, we would fight above our weight. We do that at a really high level today, maybe 15 or 20 years ago, some of our advancements had a little luck attached to them because we invested in a teammate or made an acquisition that had a lot of talent or some capabilities that we could enhance. But as we continue to see those, it became very strategic. And our build, as you heard from Powell around our vision where we want to be and how we want to support our customers, we've executed around that inside of Retail. It has been deliberate. It will continue to be deliberate. And that gets us here. We recognize today the growth has no finish line. And what we have to be able to, we must be able to do, to sit in a room and relate to a customer and a prospect and meet them exactly where they are, and we have to do it with immediacy. We have to make it come alive. We have to show the difference. That's data. That's communication. That's modeling. That's examples. We could make this sound as fancy as you want. We have to show decision-makers that, quite honestly, we are more efficient, more effective, can help them think and many times push them to think because they ask for, believe it or not. And it starts with showing them how they've outgrown an existing relationship because the same old, same old, that got them where they are. If they're planning on growing as an organization and most have that plan, and they've got to change too, and we can help them be that agent of change. And then through education and business partnership, we're not just an insurance agent or an insurance broker. We are business partners. That's the way we think about it. That's the way we train. That's the way we enhance. We have to show that they can outgrow us. Now it's a defensive mindset really if you get offensive. We have to show them that we can be that business partner to support them in their growth. We have to be able to show them, if you're predominantly middle market, right, if you're an individual that's buying coverage for a Vespa, a scooter, or if you're the retail doughnut shop down street or if you're a manufacturing company that operates in 2 states and you're looking to break into another 2 states or if you're a very complex multinational. We touch all those at a really high level every day. And its development of having the team, the capabilities of the resources and the ability to deploy them inside our teams, across our platform, across retail, and the ability to enable that team to articulate that with impact to deliver the outcomes for the customer, period. We can't do that, we get replaced. Simple as that. So we empower localized teams in order to execute around that, and we love the accountability. So let's talk a little bit about our growth pattern. So as we look at the numbers, we continue to be very pleased with our double-digit revenue growth. Our strong organic growth as well as our profitable flow-through. We get excited about profitable growth, why? Because it gives us more dollars and more flexibility to do the following: invest in the business. Investing in our organization is what it's all about. We want to be able to earn more to put more gas in the truck. That's the plan, period. End of story. And we have a long history of doing that. If you look at the business mix, I'd ask you to think back with me for a second and all of us to 2012. Retail was $644 million, a lot of water under the bridge. Those percentages of our mix between commercial, employee benefits and personal lines and specialty have wobbled, right, depending on the year that's exciting as we've grown. We've crossed the $2 billion mark. But the story is inside the numbers. The story is really around not the $2 billion. It's around what we've executed on to keep and achieve those percentages around commercial benefits, personal line specialty. It's that tremendous focus and discipline that Powell alluded to around creating the teams that can execute and deliver across all customer segments, inside each of them. And it's is not just one. We've made fantastic advancements in certain portions of our employee benefits, but I could say the same about personal lines. And I can say the exact same thing about commercial. And once again, it's is the D word, deliberate. Where do we need and where do we want to grow and enable ourselves to be more effective deliverer for our customers. That's the discipline Powell has been talking about. So as we think about differentiators, when we sit in a room, let's again, go back to the entire leadership team of Retail, everyone is an operator. Everyone still sits in the room. Everyone sits with customers. It's still my favorite thing to do. It is fun, and it is valuable. And as a leader, if I personally don't have the ability to get in the trench with a teammate and deliver, then what am I? I sit on the egg. We don't do that. So have to do it. It's a must. But that's not force fed. Everyone gets it about that. That's our culture. We have teammates. It's a different day when you sit in the room with a prospect. And all of a sudden, the President of the organization who's been sitting in the back maybe like this, leans in a little bit and asks who he or she thinks might be the least senior person in the room? Why is Brown & Brown different? And one of the first 2 things that, that individual might say is, well, one of the things different is that I own it. I'm an owner. And I have to say in this, too. You'll be amazed at the impact that, that has and the feedback and the doors that opens from a discussion standpoint in a room. Well, we still got to be good at what we do. That's table stakes. We get feedback frequently. Once again, our customers, it's like your friends over time, you kind of are similar. There's some shared ideas here, right? We become very attractive. And feedback is not only helping us think differently, you're just different. Okay. We like that. Not everybody likes that. That's okay. Second would be in that same room, come join us, sit on the team for a second. We have that ownership mentality. We have the ownership mentality and it oozes out of us. When we have a team in the room and we enable capabilities where teammates that don't sit in the same 4 walls in Houston, Texas, and they're using resources from a different part of Brown & Brown, meaning location-wise. The #1 way you lose, if you try to use a team from interesting footprint is when you show up in the room, you can't articulate in a clean way and it becomes very obvious that those folks don't work together very often. You will be found out. That's not how we're built. And I will tell you, we've taken some bumps and bruises over the last 15, 20 years, figuring that out. But I'm very pleased to tell you that we've gotten significantly better at it because we're users of the shovels together. Just like anything in life, the more practice you have and more execution, the better you get. We've gotten really good at it. And we're going to continue to get better. Last thing from a broad standpoint is, Powell mentioned this, we think long term for and with our customers. I cannot stress how important that is. Most of our peers talk to them about a 12-month run only. They may give them long-term modeling on something. And -- but their focus is the next 12 and how to jam it in a budget. Now there's value to that. I'm not suggesting that's wrong, but as a business owner, as a business leader, we're not giving them that 1, 3, 5, 10 years, meeting them where they are to understand the outcomes that they can achieve, then we're missing a key part of our opportunity to partner with them. We drive a culture of accountability, innovation. This entrepreneurial thinking is just part of the way we are. We endeavor to become a true business partner, not only focused around insurance, the primary deliverables are around insurance, the term helping a customer to determine and develop their risk profile. How do you want to buy it? So I challenge everybody in this room. You buy your personal lines a certain way. And every once in a while, you think about your deductible on whatever line of coverage you want to think about. Okay? If you think about your personal balance sheet, what type of loss are you willing to take? What's your loss history? And I'm willing to bet 98% of you have not had a loss. Okay. So why do you buy a really low deductible? Is that really the right utilization of your cash flow? If you'd like to have a conversation about that and have a little help and maybe go to the next level, we know some people. It's just like that. So a broad range of capabilities. We have a great tool box, and we're executing on it on a daily basis. We have to be able to leverage those collective capabilities, deploy them wherever we are. Retail is one business. It's one entity, developing localized leadership and supporting each other across. We're going to talk a little bit more about international, and it's an exciting part of our business. But let's be really clear, we have always had international capabilities. I shouldn't say always, for a very long time, we've been excelling there. It's just not something that we waived the banner on. Specialized products, capabilities, the ability to read, I'll give you an example. We were working on a business. It happens to be a tree farm recently. This is a pretty sizable account. They had a long-term relationship. They didn't really want to work with us, some members of the team. We did a deep dive on their coverage. And we found an interesting thing about that tree farm. They had an exclusion. And in that exclusion, it had to do with the timing. And the way that they planted trees and maintain them and the way ultimately that they delivered them, and there's a difference between a residential environment and a commercial environment. That's code for one of those was excluded. One of those that was excluded happened to be about 48% of their revenue. So 48% of their revenue wasn't covered for very typical losses. That's a problem. These are the things that we execute on. So lasering out coverage, manage scripting coverage on a daily basis. All the way to creating specialized product, even proprietary product around an industry segment, it could be a small business like cyber or it could be very, very complex, could be around things like product recall and all points in between. All this has to be in a tailored personal delivery model. It has to match with the team. Every single team that we work with, meaning the customer or the prospect, you cannot deliver it the same way. This isn't a lever pool. Is that how you want it? Probably not. We have to be good listeners and we have to be able to mold into a team that can work together, that's that business partner mentality. So let's talk a little bit about capabilities, Breadth and depth of capabilities does what? It gives us stability and the ability to grow more. But let's unpack that. If you think about teammates and you think about stability and retention of teammates and the ability to attract teammates, how do you do that? Well, one element is just recruit all the time. And we do that. However, what's the middle of the twinkie, right? What's the creamy filling? That's creating an environment where teammates can excel. They have mentors. They can see a path to grow in the organization. They also see how we deliver as a team and enable to deliver. That can be infectious. So having capabilities and deploying them creates what higher retention of customers, higher retention of customers, believe it or not, over time, leads to a more successful team environment. That leads to higher retention of teammates. It's also really attractive when you're recruiting. Here's how we're winning. Here's how you fit on our team. Here's how we enable that team. And here's why that's important. That's pretty exciting. Customer retention. If we keep customers longer and we can onboard new customers, that also allows us to have the opportunity based off execution to continue to grow. Specialization, once again, 15 to 20 years ago, I'm not suggesting we didn't specialize. We just specialized in certain customer segments in a more focused way. Now we've applied that focus across basically every customer segment. And we're sharing it. So I'm going to say some things that aren't secret sauce, but it's some things that we execute on that help us because it is a differentiator. Bringing large account philosophy and thought process down in the upper middle market and the middle market, however you want to define that in an efficient, accessible way is very impactful. So let's say take an example. And we're going to use employee benefits for a second. The leader of the HR leader or total rewards leader of a 200 life group company. Normally, some folks would say, "Well, it needs to look like this. That's a trap. You have to understand where that person came from. And typically, that person was the #3 person at an 18,000 life group. And then they got the opportunity to be the #1 person in 200 life group. So what do you have? You have different risk tolerance, a different idea and a different expectation that they want to apply either immediately or in time. At baseline, they want to see that you have the ability to think and go back to what they're used to. It may not apply today. We have to execute on that. We learned that the hard way, 15 to 20 years ago, quite honestly, but we've migrated and that changed that dialogue and then changed the execution. That's an exciting opportunity. We want to grow in the room and show where we can meet today and then how you're not going to continue -- you cannot outgrow us and how we can continue to support you. Many, many customers as they buy lines of coverage. So if you think of the snapshot on this page around industry segments, whether it's in construction or a public entity or anything you want to name, they'll buy one line of coverage, like a small account, 2 lines of coverage, like a large account and the balance like a middle market account. It's varied. It does not apply to every line of coverage. You must be nimble and you must be able to execute on that. We enable localized leadership to deliver to the communities that they serve, so valuable and important about our culture. The way insurance is distributed, serviced and handled in Portland, Oregon, it's just a little bit different than Miami, Florida or Paducah, Kentucky or Houston, Texas. We love that difference. We relish it and we allow that to be at the forefront. Driving everything the same from a different location or a common location doesn't always land in an environment. We want to enable that team to work through this. So we have a very diversified portfolio of capabilities and relationships. So from a market cycle, we deliver deep diversified relationships. Garner every line of coverage you can think of across 1,000 carrier partners. That's good. Super valuable. Segmentation, we talked about. This is an overlay of capabilities over customer segments, industry segments and lines of business, and the ability to be nimble and agile to have that overlay and apply and meet that customer where they are. International will go a little deeper in, but how do we focus on that today? It's not terribly different than how we focused on it last year or the year before. Where we have teammates within retail, to deliver in those jurisdictions, we utilize them. Where we need help globally, we utilize our partner in the world broker network in order to deliver in whatever those locations are, that will continue. So we'll finish off with our retail operating vision. We've talked a bit about collaboration and execution. This is what we call the scaling of the power of we. Building the better toolbox, organizing in a way where our teammates can see where the capabilities are and how we can use them in a fair way to deliver what the best outcomes we can deliver for our customers each and every year. That is the plan in addition to enabling localized leadership. So some of our competitors, their enablement model, it's different. I'm not saying it's wrong. It's just not our model. Their enablement model is, well, in that office, you don't have all the capabilities, so we're going to lift it out and take it and then we'll execute it with a different team. And what we have found and what we see is that, I'm not suggesting that can't work, but that team that they take it out and give it to, they don't have the local relationship or the regional relationship. And if they built that relationship, they want them involved at some level, and they sever that. That's a conflict line. What we want to do is enable a localized team, capitalize on relationships, continue to build them and connect those. So we have young kids at home. We still have LEGOs. There's the analogy in the vision. It's like clicking LEGOs together. We want continued strong organic growth in varied market cycles by product line, industry segment, EV commercial and personal lines, so we can continue to fuel the engine. You've heard about our continued strategies and specialization around products and how we're delivering capabilities to our team, and we will continue to recruit and advance our teammates. It's a lifeblood of our company. You've heard us talk about Brown & Brown University, which has been going strong for 22-plus years. It is a forever education environment that we're continuing to invest in and build in. So historically, it's been around developing identified talent that's newer to the insurance business. That could be a student coming from graduating with a risk management degree, from university or it could be someone that's coming from consultative sales in a different industry segment that we've identified that wants to transition here. And we really don't go at property and casualty employee benefits and personal lines. But we've been on an extension of that journey to make it a forever education piece. If you're very seasoned within our organization, what can we educate and give, and what can you give back? How can we be more collaborative to float all boats? And we're excited about what that's going to look like in the future. Our acquisition model hasn't changed. How do we fit culturally make sense essentially? And how do we make investments in technology, data and analytics so we can not only have a better user experience for our customers, but for our teammates, operators, strategic vision, understanding where we've been trying not to make the same mistakes twice and listening in the environment to teammates into prospects and customers about what they want and put that into and recognized in creating the plan and where we're moving forward. So with that, I'd open it to Q&A.

And maybe if I can cover a couple of things just administratively. So we're going to have microphones around they'll run over. If you can just mention your name and the firm you're with because we've got a bunch of folks that are online with everything, and we'll move through. We've got questions at the end of each of these, but we've also saved time at the end. So we've got a question over here for Greg to get started.

Good morning, everyone. My name is Greg Peters. I'm with Raymond James. Good to see you all. Thank you for hosting this event. I guess I have one question in 2 parts. You emphasized the long-term nature of your strategy and your vision. There are some businesses that you're not in today that are occupied by some of your competitors. Can you talk about what your strategic vision is and I'm thinking like reinsurance, for example? And then the second piece of the puzzle is you talked about culture. You talked about the margins and cash flow. Many of your peers have a tendency to do offshore centers of excellence, put workers offshore to harmonize and extract efficiencies and improve their margins. So can you talk about your attitude towards that?

Sure. First one around areas where we aren't. We don't wave the flag around some of these things. But reinsurance, we actually placed a lot of reinsurance. Do we have a reinsurance division at the moment in retail? We do not. But we place a lot of it because we need to be able to carve that's more of a large account thing. So we certainly have that skill set and touch that daily, weekly. We like to focus on what's core to our business. And we like to focus on not only what is core, but what we can control to deliver the outcome. Really, really important that leads to that profitable growth model, so we can continue to reinvest. We're always looking at spots where we can get better or haven't been over a 15- to 20-year window so that we -- and look at it is this a long-term plan? So we are looking at all of those things. And then all of a sudden, how do you get into something brand new? You just turn on the light switch. There's a ramp. And it may happen around an acquisition, assuming it fits into the strategy where we can continue to enable that. So we are looking, and we'll continue to look and make those investments, whether it's around an individual or business where we see fit around strategy. Powell?

Yes. Greg, if I could just elaborate on that, too. We don't like to use the term never or always. But in certain businesses, the one that you referenced as an example, we think you got to be in it to win it, meaning you have to have scale. And so you don't like wade cautiously into the shallow end of the pool, you got to get in big with the services and capabilities as you think about it, the way you think about it, in my opinion, the rest of us do. So we like to say that we are looking to, one, enhance the existing capabilities that we have, and we're constantly and consistently evaluating new opportunities where we can add value. That's the important distinction. Is that business a business that we think has a long time horizon and can add value over a long period of time. I'm not -- don't insinuate that I'm not saying that business doesn't. That's not what I'm trying to say. But I'm saying that's how we sort of think about those businesses. So I just wanted to clarify that.

Can I -- Greg, Just to add to this. Remember, we used to own a reinsurance business. We sold it back in 2014, and we did it for the strategic reason that without the scale inside of that business, and we were looking at the horizons and the cycles in that business. We didn't think that was the best deployment of our capital at that stage to make a massive investment in reinsurance versus we could take it other places across the organization.

Second part of the second question around offshore utilization. We currently do that. So we have a combination of looking at different ways of delivering service team partnership, both onshore and offshore. Those offshore partners as it relates to retail, all happen to be third-party partners in different countries, but we have onshore and offshore. So just like the first question, it's really around long term. There's an interesting thing that's happening in a lot of those countries that many of our peers use, the price of poker has gone up considerably in the last 5 years and continues to rise. That's not a reason not to do it. But the value of the business plan has inverted considerably, and that trend is probably not going to slow down. So we want to be nimble enough to make those decisions that we think have that long-term lack of variable. Thank you.

Mark Hughes with Truist Securities. Barrett, you showed your growth from M&A has been roughly 10 points over the periods you had on your chart. Is that still doable in the Retail segment? I know it's doable, but is there anything structurally that's changed that makes it harder to do the tuck-ins or you're just at such a scale it may be a little more difficult to maintain that 10 points? Is it going to be chunkier?

Understanding -- so a couple of quick things. Our growth has 2 segments: organic growth that we can control, right, same-store sales. Our team going out and deploying, keeping more customers and then bringing on new ones. So it's a combination of the 2 and acquisitions, right? So the acquisition market is good. We know the price of poker is high. You know we have a long-term discipline. We're not walking away from that discipline. We like tuck-ins, but it all starts with a cultural match and what makes sense financially. So where we find those, we are pretty darn good at executing. Go back to the culture. It's either a fairly magnetic transaction, and it brings down a barrier very quickly and conversations take off and it becomes sort of like we're finishing each other's sentences pretty quickly or it doesn't. And that's okay, too. So we're looking, there's that birds of a feather idea. We want to capitalize on that and never turn down your gut. There are great opportunities in this marketplace. When those happen, organic growth is controllable, more controllable because there's an impending due date, meaning 12 months, there's a renewal cycle. It's going to happen then. They're going to choose somebody, whether it's us or not, that's up to us to make that difference. Acquisition model is around an emotional turning a corner. Do I want to move from -- someone wants to move from being an owner or an ownership group to joining a bigger team, they get to decide when that time frame is.

Mark, I would also say, as you get to be a bigger base, it becomes a little lumpier, as you know. And so what we don't think about is we don't think we must acquire set amount, let's just say, in retail to keep that up or whatever the case, we don't think about it that way. Actually, in a long-term thinking process, we actually say some years, it might be less than others, right? So this year, so far, it's been less than last year in retail. And that's okay because last year in retail was a big year, as an example. And so I look at it, are there opportunities for us to grow inorganically? The answer is yes. Those exist right here in America, in Canada, in Ireland and England and maybe other places. But specifically in those areas that we're in, we feel really good about those, and when someone sells and why is up to them. But as the base gets bigger, I think the bigger number -- I mean, in terms of revenue becomes a little lumpier. And that's okay. We're, like I said, play in the long game.

So we'll have -- as Andy mentioned, we'll have plenty of time for more Q&A at the end. I want to keep this role and so I'd like to introduce Chris Walker with National Programs.

Thank you. Can I have that book? I thought I'd be able to read this, but my eyes aren't as strong as they used to be, Julie? Good morning. I'm Chris Walker, and I'm responsible for National Programs. I'm -- I spent the first -- I started the business in 1980, and I spent the first 23 years of my career in insurance and reinsurance. So that was a very opportune question, good leading. Thank you for that. And I'm from -- I grew up in St. Paul, Minnesota. We bought Hays, which is Minneapolis-based and now we have Paul Krump from North Dakota. So there's a trend here. I was going to say this is a Midwestern takeover. But takeover Investor Day isn't the best word. So we'll just call it a Midwestern influence seeping within the organization. So after 23 years in reinsurance, and I loved reinsurance because what I loved about reinsurance was you dealing with decision-makers. And it's such an important part of their financial planning that it's -- you really get the attention of people. I thought it can't be a better business. Well, 20 years ago, I got in programs. And so I've been in programs 20 years now, and I love programs. Program is a very similar field to it. So it's been a great career progression for me and I absolutely love it. And I've been able to move around the country and work in different cities and things like that. And then there was that monumental day in January of 2012, where we were out, and Steve and I are in San Diego now after being around the country a bit and Brown & Brown bought us. We were owned by private equity before that. And we had a pretty good experience with the private equity guys. They were -- they gave us really good discipline around the financials, but obviously, we know we're not going to be there forever. And so we went through a process, and we landed in Brown & Brown, it couldn't have been a better landing for us. It's been a fantastic -- over 10 years now, we've moved with Brown & Brown. It's been a fantastic 10 years for us. We've had great growth. We've had excitement. We've had great support. And I will say anybody that is thinking about doing a transaction with Brown & Brown, they really -- what they say they delivered on. We're 2,500 miles away in San Diego, which being 2,500 miles and 3x zones away from home office isn't the worst thing in the world, right? It's a pretty good thing. But no, but they've been great to us. We love it, and they've really delivered on that. As we go through the National Programs segment, there's a few key takeaways that I'd like to have in your mind about what we're doing and how we're getting to where we are. One is the first key words are we're really specialty niche-oriented. We're not slugging it out with Travelers or Hartford or Chubb in middle market and Main Street, writing bots. We're very specialty niche focused. That's where we make our mark. That's where we can make a difference. So that's where we focus. Secondly, we're an underwriting organization. We hire underwriters. We want people from Chubb. We want people trained at Travelers or Hartford or in the old, Day Scottsdale, which is now nationwide. We want those kind of people that are trained as underwriters that really get deep in their business. We don't want generalists. We want very specialty-focused underwriters. We have to have the underwriting talent because remember, our model is all about an insurance company gives us their balance sheet basically. They hand us the keys and say, write this specialty for us and you better produce so we're not going to stick around. So we got to be really diligent about that. So we have to have underwriters. Third point is we've got a very large diversified book. We all know we're going to have ebbs and flows in the insurance industry. There's going to be high marks. There's going to be a low marks. But because of our size, and we'll get into that a bit. But because of our size, we're able to, for the most part, absorb these changes in the market dynamics. So we can ride things out. If you -- a lot of people are trying to jump into the program space right now. But if you're a one-trick pony, and you're in the market, and maybe it's really great right now, but we know that could change, what are you going to do? You either have to try to, all of a sudden, expand or you have to lay off all your people and wait it out some more. We don't have that issue. We've got so many businesses, and we're so diverse and so large, we can absorb that. The fourth thing, we have a lot of data. We just have -- we've been doing this for a long time. We keep our own data, we do our own modeling. We have actuaries. We have a modeling department, things like that. We have the data, and that is critical in this market. You've got to have the data to get those insurance companies to support you or the reinsurance community support, you got to have it, and we have the data. And we're very protective of our data. We don't give that out. That's our data. So we control that. Fifth thing, we have really strong, deep partnerships with the distribution, certainly, but on the carrier side. So we have really strong relationships with those insurance companies that are trusting us with their capital. And then finally, we just -- we've had good results. So that whole flight to quality that everybody talks about, we've been the beneficiary of that flight to quality. So we're really pleased with that. Okay. So -- those are just some quick introductory comments. So let's talk about this. We provide, as I mentioned, insurance carriers with a complete infrastructure and a distribution network to launch and manage a broad array of those specialty niche programs. We underwrite in place more than $5.5 billion in premium. We believe we're the largest program writer. Powell alluded to it earlier. Steve Boyd and I, and Steve and I worked together at Arrowhead for a long time. We're good friends, good colleagues, really trust each other. And a lot of the other carriers -- a lot of players, the RTs of the world and some of those people will combine their wholesale with their program. We have a sharp division between church and state in that sense. We're a program writer. And we'll get into how we define that as we get a little closer. And we're -- we've categorized our business in terms of personal lines, commercial lines, commercial specialty, professional liability and public entity. So that's kind of how we're split up. Proud of our results. Look at key metrics. We've had really strong revenue growth. We're proud of our organic -- a big part of that. Our margins are -- I thought reinsurance broker -- as a reinsurance broker, I thought we had great margins. We had great margins here. We're really, really proud of the margins that we produced here. As I mentioned, we believe we're the largest in the industry. The partnerships we have, and I'll show some of the carrier partners that we do business with. You probably -- they're all household names, you probably know them. The underwriting couldn't emphasize that more the distribution capabilities that we have. Policy administration, we handle claims when appropriate, not in every situation, but we handle claims on behalf of our carriers. We have over 60 programs that we do in the marketplace. So again, the diversity, the data we have, the strength of that is really important especially in this market because we've got -- with a lot of our carrier partners, we have more than one program. So they might be writing our commercial earthquake, but also doing some of our professional liability or they might be doing a little bit of personal lines, a little bit of commercial lines. So again, the diversity for us -- from us gives that carrier options as well. So one carrier might have 3 or 4, 5 programs with us. So again, it gets back to that expertise, the depth we have, the strength of the relationships that we have. They really put trust in us. When we want to roll out a new program, there's no vetting of Brown & Brown National Programs or Brown & Brown, the vetting is with respect to the specific program, how can we both make money? How quickly can we get in the market? And if the market goes the wrong way, how quickly can we get out? We don't like to get out of stuff because we hire the people, but it happens. Sometimes you can't -- the opportunity is there, you jump on it and maybe 4 years later, it's gotten so crowded, you have to get out. And I'll give you an example of that, we were at Arrowhead. This is before we sold to Brown & Brown, Steve and I had a program for architecture and engineers. And we hired some people from an old company called Design Professionals Insurance Company. Very quality underwriters, very strong group. We had good carrier partners. And when we were in that marketplace, there were maybe 8 to 12 competitors in that market at the time. This goes back a few years. About 6 years at later, it suddenly got to be 30 people, then it was 40, and then it was 50. And it turned into a situation where I'm not going to say it was a commodity, but it was really hard to price the business properly to make the margins we need to make. We could have stayed in and live it out, et cetera, but we had a very frank discussion with our carrier partner and basically said, "Hey, we need to make our share, you need to make your share. This isn't going to work the way the expenses are and the way the competition has come because prices went down." So we got out. It's tough. It's unfortunate. You have to close an office, you have to lay people off. We never want to do that. We hate that. But sometimes the reality hit and you got to move. So that's the kind of thing we can do. Now if all we had at the time was professional liability and architect engineers was a big part of that, it would be tough to make that decision. But again, with the size of our base and the strength of our company, we can do those kind of things as difficult as they are, we can do those. So we got that. We got a wide breadth of offerings. We do a lot of earthquake insurance, both residential and commercial. We're very big in that. A lot of carriers partners support us. Big flood writer. We've got a lot of flood. We're the -- probably the largest right your own in the country that deals with the National Flood Insurance Plan, the NFIP. And we got a private flood operation as well. We're in homeowners, a lot of different businesses that we have and a wide network of producers, distribution network. So we've got retailers, wholesalers, aggregators, direct-to-consumer. We're a bit agnostic about how we get the business, although admittedly, most of it comes from, obviously, retailer wholesalers. And the other thing -- other point I want to make is that we're doing much more together. Barrett, Steve and I, we talk a lot together. We work together a lot. We like each other. Believe we really like each other. It's really nice. I want to give you a hug right now. It's really great. But we really like each other. So we work well together and that's important. There's a lot of trust there. And there's no forcing a business one way or the other. But if the opportunity arises, where we can work together, we want to do that. So that's really important to us. So this is a -- sometimes people get confused because we use these terms in our business: Program Administrator, MGU, MGA, Binding Authority. So we put together this very complex slide to try to explain that a bit. But if you kind of go from left to right, so the retailer dealing with the consumer has an appointment from an insurance company. I think we know what retailers. But then you get in this area of binding authorities, program administrator. Steve and our wholesale will talk later. Steve's got binding authorities. He's got some GA business, as we call it. But you can see there that we've got the ability to bind coverage, and you might be able to do some pricing, et cetera. As you move over and you get into program administrators and MGAs, MGUs, that's where we're getting more and more authority. We're getting the authority to distribute -- find the business on behalf of the carrier partner. We're having the ability to bring that in and we're underwriting it for them, we're pricing it. We're doing the underwriting. We're getting our actuaries involved. We're getting our modeling people involved. We're actually getting to a point where we can actually price that business. Now we're doing that within the parameters of what that insurance company told us to do. Zurich will tell us, here's kind of the box or here's the parameters, here's the expectation we need on PMLs or average annual losses or whatever box they've built. But then it's up to us to get it priced within that box. We're not -- if a risk comes in, we're not calling Zurich or Munich Re or QBE big partners and saying, "Hey, we got this risk. We think the price is supposed to be x. Is that okay with you? We're not doing that. There might be exceptions if it's really a big deal or something we might call them. But for the most part, we're doing that in our offices across the country, depending on the line of business. So we're pricing it. And then we're sending that quote, that price to the distribution partner, wholesaler, retailer, et cetera, they can accept or not accept. If they accept them, we issue a binder, we issue a policy, we'll send out the billing. We'll collect the funds. We'll distribute the funds as appropriate, keep our commission, obviously. And then in a lot of cases, again, we handle claims. So we are really doing everything the insurance company would do short of one key thing. We're not taking the risk, right? They've still got the risk. They've got the balance sheet risk on their paper, but we are doing all of that. And for that, we get paid a nice commission. So it's a beautiful world. We love that. We love that very much. So that's kind of the spectrum there. And again, there's a little crossover between what Steve and I do in our areas, but we've got to pretty well figured out within Brown & Brown how that all works. We've got that $5.5 billion of premium. We've got over 60 programs. We had various brands in the industry. A lot of people don't know some of our brands. I mentioned Wright. We own Wright, Wright Flood, Wright Specialty, Wright Insurance Group. So in that group, we're doing schools, municipalities, we're doing -- in Wright Flood, obviously, flood, we've got Proctor Loan Protector. We're doing lender-placed business. Big headquarters down here. We've got over 500 people in Daytona Beach down the road. They're also in Troy, Michigan. Orchid, Powell mentioned them. We recently purchased that, a really strong non-admitted homeowners writer, Bellingham Underwriters, up in Washington state. They write commercial auto, trucking. But again, very specialized. They're very -- they're picking their spots. They're not using ISO forms all the time. They're very, very specialized in that sense CalSurance professional liability business, insurance agency knows what they write. They're up in Orange. FIU -- we've got 3 wind facilities within our book that are basically writing wind in the Southeast. Different classes, they don't compete, but they're different risks that they evaluate, but that's FIU Sigma, and Arrowhead risk. Nexus will be a new addition when we closed the Kentro Nexus acquisition. We're really excited about that because they're bringing some lines of business that we don't write right now. So the -- again, it's a perfect match for us, and they've got 1 or 2 insurance companies they deal with that we don't. So again, we think there's synergies there where we'll be able to potentially tap into some of their relationships, and they might be able to use some of ours. So that's all good. Arrowhead is a big brand. And within Arrowhead, we've got our residential earthquake, commercial earthquake, aftermarket program. There's a lot of different offices there. But we've got all those brands across the country. And again, they're very specialized, very nichey. One of those American specialty, we write sports and leisure. So we're doing use sports events, use to carnivals, things like that. So it's kind of that kind of business. But again, very nichey, very specialized with people who have been in that a long time. Again, broad diverse capabilities. I've mentioned a lot of these already. I didn't mention work comp. That's another line we write out of San Diego. Sovereign nations. So we've got some tribal business that we do. Complex stuff. You've got to do the law enforcement, you've got to do the property. There's casualty. So again, you have to have people to really understand that business. You can't just walk in, which is why it's so great for us. Somebody can't just decide, hey, I'm going to write travel business. First of all, you have to find a carrier willing to do all that. You have to understand how that all works. There's a lot to it. And we've got that expertise already. So again, Powell asked us a lot of times, have you built a moat? How do you build a moat around your business? We've got a lot of moats around our businesses because they are so specialized. You can't just put up a sign and say, I'm going to get into travel business, or I'm going to get into commercial earthquake. There's a lot to learn and know about those types of business. So we've got moats built around that. Professional liability, we're -- we've got long-standing, this is predates before the Arrowhead came on. Brown & Brown had a dental program for a long time, very successful nationwide dental program. Again, another really nice specialty. We're providing the dentist basically a package policy that says, "We'll write your equipment. We'll write your building, if you own the building? We'll provide the professional liability coverage. If you have an automobile, we might be able to put that on the policy. So it's an all-encompassing program for that dental operation. So we tend to focus more on the smaller groups. We're trying to branch off and larger ones. So again, there's moats, there's specialties around all this that we've got. And it's run by an X Chubb person, right? We have these Chubb people that we hire. So we've got Chubb sprinkled throughout the organization as well in our group. I mentioned our carrier partners is a really important part of it. One of the things we say is we can have all this expertise. We can have great underwriters, great distribution, we can have all that. But if we don't have a carrier partner, we do tend to sell. We don't have a product. We don't have the balance sheet. So we got to have the carrier partners. So we spend a lot of time working with the carrier partners. First of all, to make sure there's transparency they know exactly what we're doing. We both -- we all agree on what the loss ratio is, what the trends are. We don't want any surprises because it's so important for us to have that group. And we're really proud of that group. We spend a lot of time with these people. And again, a lot of these carriers have more than one program with our Brown & Brown National Programs group. So we've got a lot of depth. We've got a lot of reasons to get together. We have -- one of the things that these people do, obviously, we get a lot of audits. They're in there auditing us a lot, and we like that. Funny thing. We get a lot of audits in San Diego in January, February and March, but that's an aside. But we get a lot of audits in our office. And we like that because things come out of that. And a lot of times, what comes out of it is new opportunity. Because when they come out and they look at our portfolio, they're looking at their specific program, but many times, we'll then give them an overview, and we're very transparent about this. Here's all the things we're doing. Here are some of the things we're thinking about. An example of that is we rolled out a new E&S facility about 2 or 3 years ago, recognizing that there were some changes coming in the market. So again, we're able to have that dialogue. And it's not -- again, as I said earlier, they don't have to vet us. They just have to get our idea. What are we thinking about? Why do we think we can make money? Why can we make a difference in the market? That's what they're focusing on. So it makes for a quick conversation. We love yeses, quick yeses, but at the same time, it's not going to work, we'd like a quick no, so we don't waste our time. We get that with that carrier partner group. So we're really delighted with that. But we're always trying to expand that group. We're always looking to add new carrier partners because we're trying to grow. Our mantra, we want to continue to grow in these markets, so we're working on that. So our strategies for success, we want to be recognized for delivering superior underwriting results. We want our carrier partners have to make money. We want them to make money. We want our share. We want our money. We've been pretty good at that, but we want to carry to make money over time. We know there's going to be ebbs and flows of time. But over a long time period, we expect them to make money, and they will and they have been. So that's why we can keep that list strong. We want to continue to build our distribution relationships. That's really important, too. We've got to get the business in the front door. Most distribution partners in the specialty niches they know us. They know about us, they know who we are. We get looks at a lot of business. In this market, especially in the property segment right now, we can be pretty selective about what we write and don't write because we're seeing virtually all the earth -- commercial earthquake, all the wind business, we'll see it for the most part. Maximize our position as the largest MGA. Product innovation is really core to our value proposition. We're always looking at new products. And really, what's really nice is a lot of times the carrier partner will come to us with an idea. Here's a line of business. They see as an opportunity. Can you guys get in there? And then what we have to evaluate is, do we have the expertise right now? We may not. If we don't, can we go find it? Can we go higher the expertise, the underwriting expertise. And then do we have the distribution. So we have to make those kind of decisions. We're a culture of recruiting, developing high-performing teams. We've been pretty successful extracting some teams of people out of insurance companies. They see us as an entrepreneurial, successful place to work with a great parent behind us in Brown & Brown. So we've been able to attract some pretty talented people through this whole journey that we're on. We've got a lot of data. Data, analytics, those are really important to us. We really pay attention. I mentioned before, we've got a modeling team that's led by a gentleman who has his PhD in mathematics. I think but he came out of RMS. RMS is one of the largest modeling firms along with Karen Clark Steel. Those 2 are probably the leaders. But the Sky Liang, he's a brilliant guy. He leads our modeling team. He really understands how that model works. We just had a new model rolled out by RMS called RMS 23. So we're right now in the valuation how that's going to impact our business for PMLs, et cetera. And then obviously, we're looking at acquisitions. We've really been pleased with the ones we've done. We've done a few now. We've got Canada called special risk insurance managers. They were on that page earlier. Really specialized operation out of Vancouver with offices across the provinces. We're happy about that. Work has been great. It's been great. So we're really good. Last thing, and then I'll go to questions. Last thing is there has been this flight to quality, and we've seen it firsthand. We've had a lot of storm activity. No surprise there, right? We had $50 billion of conducted storms in the first half of the year. $50 billion of insured loss from tornadoes, hurricanes, big thunderstorms, et cetera. It's a record number, right? We've had obviously earthquake activity. We've had hurricanes already, a $3 billion roughly of insured losses from most recent one. And a lot of carriers are looking at their portfolio and saying, how has it performed against our expectations, our modeling expectations? They model these things constantly. And there have been some of our -- some of the other general agencies, the program writers, haven't performed as well as perhaps it was expected. Our portfolio has performed very well against model results and versus actual. So there's been a -- we've seen a couple of situations where there's been this flight to quality where they've given us -- taking capacity away from someone else and brought it to us. Now not one for one. They might have cut somebody's PML by $100 million, and they give us $75 million of new PML. That's a big victory for us, a huge victory. So the flight to quality has happened. So with that, I'll open up to questions here.

Mike Zaremski from BMO. Thanks for hosting this day. A question on kind of growth, organic specifically growth in the National Programs segment. So growth has outpaced kind of the broader marketplace. I guess you can use the Retail segment over long periods of time. And I believe that's a phenomenon that's not just Brown & Brown specific. I think it's kind of an industry phenomenon, but you can correct me if I'm mistaken. Maybe you can kind of talk about what's driving programs to grow much faster than the broader marketplace?

Yes. That's a great question, and it hasn't happened by accident. We've been -- what we try to do is we try to as best we can look around the corner. And there's obviously been -- there's various markets, I mentioned how large we are and diversified we are. So we've been planning for these type of market dynamics for a long time. And how we do that is we try to get as much carrier partner support as we can. We try to clearly lay out a plan with those carrier partners around if this happens, how are we going to move? Well, or what direction will you go? How much are we going to push rate? How much are we going to push deductibles, things like that? It gets very granular but we plan that ahead of time, ahead of some of these markets as best we can to prepare for what happens if we do have a tightening insurance segment. Again, the specialty areas are a little bit easier to predict, not easy, but they're a little bit easier to predict where you might see some things. I mean if you think back on the property market and specifically, all this loss activity, all this talk about climate change, people running from certain areas, running from California, running from Florida, et cetera. We kind of see that coming and we think to ourselves, well, there could be some opportunity there. So let's try to get our carrier partners lined up, let's try to get our data in a good place, let's get our modeling ready. So if that presents itself, we can move quickly. And so I think the fact that we're pretty nimble, we're so specialized, and we have carrier partner support, we're able to enter those markets and take advantage of a situation. So that's growth. Now the next question might be, well, what happens when the market gets a little soft? Well, we've got to deal with that, but we think that then another one of our segments is probably going to rise a little bit. Maybe it's professional liability, maybe it's personal property, who knows. But again, we're trying to position ourselves to take advantage of the next opportunity. We're not going to get them all right. We try to look around the corner and get those right.

Okay. We've got Meyer.

Meyer Shields, KW. So 2 questions, I guess. One, I was hoping for maybe a little more color on the amount of property capacity that you've been able to retain and grow because that seems to be in significant demand. And second, I was hoping you could touch on the cost of underwriting talent within the MGAs and MGUs?

Sure. We can't really get into specific PMLs because that's private that's public -- or not public it's private information amongst those carrier partners. But our PMLs, if you look at the commercial earthquake, they've been gone up a bit, I'll say, over the course of the last 12 to 18 months, which is, again, a huge victory because that's how we're measured around, how we allocate that P&L, when we model it, what's the average annual loss looking like, et cetera. So the PML and commercial work place has gone up. I'd say about the same scenario in our wind overall. It's gone up a bit. So we've been able to -- I guess the best way to answer it is we've been able to stay active in both the wind and the earthquake marketplace to a pretty large extent over the course of this marketplace, and we foresee that for the rest of the year we could stay pretty active. The talent -- the talent piece, we're very competitive in how we reward our people. And we've got other tools at Brown & Brown. We've got the stock purchase plan. We've got the stock options that we can use. So we can entice people with that, but it's more about letting them really do their thing in a very entrepreneurial culture, and then we reward them to a large extent on how their profit center performs. So they can -- they'll certainly be rewarded on Brown & Brown's overall results as they get stock and things like that. But also, they're rewarded in their profit center and how National Programs performs overall to pay on their level. So there's a lot of tools that we can use to make sure we get that strong talent.

Perfect. Chris, let's cut there. Yes, we'll do the two and then that way, we get Steve up.

Yes. Thank you very much. I appreciate it.

We'll feel more questions at the end.

All right. Well, good morning. I'm Steve Boyd, and I think Chris kind of gave a bit of my background. So I've been in the industry about 28 years. I got a fantastic opportunity to work at Arrowhead out of college, 20-plus years in that space. And then just a few years ago, I was given the opportunity to move over to oversee Bridge Specialty Group, which is Brown & Brown Wholesale division, and work with the 1,500-plus teammates we've got over there. So let me kind of -- before I could get into our space and we'll unpack that in some detail. Talk a bit about the E&S marketplace because you can't find an article press, you don't hear about it. But also the dynamic and the relationship we've got with the National Programs division. I think it's very unique in how we're structured. And I thought the iStore chart that Chris put up there to kind of show the various layers or levels of delegated authority, I think it tells a pretty good story. In many ways, we see kind of ourselves as an incubator for product ideas. When you think of the wholesale space in the United States and its growth over the last decade in particular, I always grew up in the industry looking at the wholesale space is that place you go to kind of innovate, create products to anticipate the next set of emerging risks that consumers are going to need. And I think that's kind of one of the things we bring to the marketplace, our ability to obviously be nimble in rate and form in this product. The last couple of years, it's been a little bit different, right, for a whole host of reasons. I think the current study is out there right now by WSIA and others indicate that the E&S marketplace this year could cross $100 billion, which is unbelievable when you think about where it was, just 10, 15 years ago. 22%, 23% of the commercial GWP in the United States could be in the E&S space by the end of this year. And so whether it's in Chris' business or my business, the growth of that over the last couple of years, I think, has created some interesting dynamics for all of us. I think when we look at it and you ask the why, I think everybody assumes it's a property phenomenon. And yes, property, specifically around not just cap risk, but as Chris indicated, kind of those -- what we call secondary perils, convective storm, wildfire has really kind of put the fear of god into a lot of insurance companies. That on top of the fact of a very challenged reinsurance marketplace has forced markets to reconsider their portfolios. And that's where we start seeing more business flow into the E&S space. And it's not just a property phenomenon, it's also casualty, whether that's nuclear verdicts or social inflation or whatever the coin term that they're going to put out right now, you've just got adverse development playing into some of these casualty books, which again is forcing a number of standard markets to reconsider. But that ebbs and it flows. And I think if you follow the last 30 years of this space, that won't stay forever. And so what you'll hopefully take away from my presentation and segment is how we have built Brown & Brown wholesale over the last couple of decades to be a very diversified platform. I think one of the things when I go to a lot of these events is there's kind of a misnomer that we are a Florida property wholesale platform, right? I see you laughing because you think the same thing. And that's funny, if not the case. And I think the reason why people think that is 40 years ago, Brown & Brown got into the space with the acquisition of big underwriters here in Daytona. And that is one of our platforms. But as you'll see in my presentation, there's a lot more to it than that, okay? So let's move on a little bit. So again, Bridge Specialty Group, we rebranded essentially in early 2021 when I joined the team. And really, we've evolved from, I'd say, 50-plus boutique specialist wholesale platforms across the United States into what we have today, which is a leading global wholesaler. We'll place well over $5 billion into the marketplace this year. And we'll talk about the various levels and certainly segments within that. So when I talk to our teammates and certainly to our retail partners and carriers, there's really 5 core strategic pillars that we operate Bridge around. Starting with seeking clear differentiation in the marketplace through as we'll call it, continuous innovation around both product and segment specialization. So we're not an all things wholesaler. We're not going to write every single segment out there. Instead, we intentionally focus on becoming kind of that go-to expert in a couple of core segments, and we'll talk in some of those. But just to give you some examples. Public entity municipality, we're one of the largest wholesaler platforms in the country in that space. And that includes everything from police liability, which is a very tough class, which obviously sits in the E&S space today. School board legal, small towns, big towns, you name it, water districts. We're in that space, we have been in that space for over 25 years. And retailers of all sizes, shapes and from small to the large, they've come to Bridge Specialty for that solution. We talked about property. We do property, right? It's not our biggest segment, people think it is. But we do a lot of, obviously, Southeast wind because of our routes here in Florida, and that's a specialty today, with the Sheridan layered property and obviously, the dynamics and challenges. And that could be in the public space. It could be, obviously, we'll talk about homeowners and personal lines later as well. As we -- and I'll actually get into some segments special -- breakdown later. But transportation, executive risk. That's an area as well. We talk a lot about kind of the rate movement, whether it's public company D&O or some others. That's the other side of the spectrum, right? You're seeing a good strong rate increases coming in the property side. We're seeing the other dynamic playing out in cyber and some other lines. And we've got a very healthy book there. But that's much to, I think, a point Chris made earlier intentional in our strategy. We want to have that strong diversification in our portfolio because we know that market is going to move back in time. And we'll see that rate movement. And I would say the inventory that we see is very strong still in that space. Second one, talent acquisition and career development. This is something I think for all 3 of us. Barrett, Chris and I, that we're all very passionate about. It's not just the recruiting, it's the onboarding, it's a career development and career pathing. It's whether that's creating opportunities for future leaders, whether that's enhancing the skills of our brokers and creating a compensation plan that allows them to start their career and finish their career Brown & Brown, we create a lot of opportunity there. Whether that's crossover opportunities where we can have somebody in our group go over to wholesale or programs, or go to programs or retail, much like I did coming from programs and now stepping into the wholesale space. Greater internal connectivity to ensure that we provide our customers with a broader set of solutions. This is really critical. And I think this is a cultural differentiation. Retailers and wholesalers by nature are highly competitive people. Barrett hit on that earlier, and I've got my share of them in our business. But what I think is unique about how we operate and this is where the great internal connectivity comes in. It doesn't really matter which of our 50-plus locations a client comes in with a need. We will bring the best capability set across our platform to solve that problem. We win together. It is that power of we. And that's something very unique about the culture that we have within Bridge. Talked about data. Same here, right? I mean we use data-driven insights to improve outcomes for our customers, for our teammates and for our carrier partners. And that creates opportunities for, again, on roads for programs where we'll see a lot of data coming in, in a certain segment. We think we've got enough critical mass that we could go to Chris, and we could partner with the National Programs Group, create a product, we can deploy through Bridge. Or depending on looking at that business or maybe another distribution model that's better suited. And so again, it gives us a lot of kind of dynamic opportunities in terms of where that distribution flow is going to go and how those products might come together. And lastly, and I think probably most importantly, continuing our tradition of delivering consistent profitable growth. Andy can probably touch on this later, but if you look at the last 10, 15 years across Brown & Brown, the wholesale segment has been a very consistent performer. And a lot of that is what I'm going to go into now, which is really the dynamics, if I can advance -- there we go, of our business. So I already touched on the fact of $5 billion placed. In terms of locations, U.S. very diversified from the Northeast, obviously, down the Mid-Atlantic, Florida, a number of offices in Texas, Chicago and out West. Recent acquisitions, which Michael touched on a little bit later in London. We've got 3 Lloyd's brokers. And that's a really important part of our strategy because it provides capacity access into the wholesale space in the U.S. through the Lloyd's platform. Over 17,000 independent agents. They are our customers. Barrett to customer. But again, there's 17,000 other customers that work with us. So again, it's a very, very diversified platform in terms of distribution, geography and product mix. On the lines of business, 72% of that is commercial. Not all of our business is E&S. I think a lot of people just assume because you're a wholesaler, you write all the E&S. We actually do a fair bit of admitted standard business, and I'll explain that later as well. In that 72%, if you unpack that, it's primary casualty, it's excess casualty, it's transportation. It's property, a number of segments within that, and again, very diversified. Professional lines of all shapes and sizes, a big piece of our business, public -- municipality and of course, personal lines. And personal lines is a segment today that you're seeing, again, more business in states like Florida, certainly Coastal Carolina, my home state of California that are starting to shift out of that standard admitted space into the E&S marketplace. And I don't think that trend is going to change anytime soon. So we've got some strong solution sets around that. Our business mix. This is really important because it kind of leads into the metrics up above. That almost 50-50 split between contract binding and brokerage. So -- we think of the contract binding space, what I would consider that or define that is, that's your steady Eddie. Not typically going to see massive rate increases. So you're not going to see this dynamic growth coming because you're suddenly getting 20-plus percent rate, doesn't work that way in the contract binding. And there's an underwriting component to it as well. So very similar to Chris' case. We're going to be very careful and deliberate in how we approach that business. But what it is, is steady. The flow is steady, it's consistent. We see it across the U.S. and it does a nice job of just providing that great steady balance. So as the market dynamics change in the E&S space, where you might have these huge -- and you'll see these dynamic swings, in the large brokerage space. And if you look at our large brokerage business as a breakdown of what we've got, you'll see the same organic numbers of some of our competitors. But that is -- I mean it's a roller coaster ride over the last 30 years. The contract binding space provides that stability in terms of that performance. So again, about 50-50 between brokerage and binding. And if you look at, again, back, obviously, our 3- and 5-year trajectory of revenue growth, a number of nice acquisition pickups over the last couple of years. I'll touch on that a little bit later and very steady organic growth. So let's kind of break down our actual platforms within our business. So the binding authority again, high transaction, E&S, think small businesses, high level of automation, national contracts. That business, again, as we just -- we highlighted 47% of our business today. On the brokerage side, we really break it in 2 areas. Our national brokerage would be your large complex type of accounts, again, the big public entity business, complex excess construction accounts, shared on layered property, that type of thing. The regional brokerage is actually something we've intentionally embedded with our contract binding offices because what we found over the last couple of years is that as underwriting appetites have changed, again, we are in the business of bringing a solution to our retail client. So embedding brokerage with our binding teams allows us to account round. It also allows us where a risk falls outside of the guidelines of the binding authority to have a solution set for that customer locally. So one thing to understand about also our business there, we operate in 5 geographic regions in Northeast, the Mid-Atlantic, the Southeast, the Central region, which is heavily weighted towards Texas and Oklahoma and the West. And so within those various groups, you've got both binding authority and brokerage capabilities. We operate and execute locally. We partner on a regional level and then we scale nationally and internationally. The third bucket there, international and our Lloyd's business, I'm not going to spend much time on that. Mike will be discussing that as part of the international part of the conversation. But I will just reiterate, this is a critical connection point for Chris, myself and Barrett in terms of delivering capacity and solutions into the E&S marketplace in the U.S. Admitted market access. A lot of people don't really think of a wholesaler as bringing solutions to the admitted side of the world. We do. And we have 2 different operating models within that. In some cases, we have relationships with large standard markets who the cost of distribution to go to every small retailer just doesn't make economic sense. So they'll use us almost like an aggregator to provide access to that product set. And so again, as a standard market picks itself back up, we get lift on that side of the business. Additionally, we have other standard markets that give us exclusive distribution for a product set into a state and region. And we can use that to, again, round other E&S solutions alongside that. And in personal lines. We have some offices that are heavily focused on personal lines, others that do it almost as an accommodation, but we have a national practice that oversees that to provide consistency to how we model, how we introduce product. And again, with the -- certainly the focus and one of the reasons we acquired Orchid last year, with a focus of more of this business going into the E&S marketplace, we wanted to make sure that we were well positioned to be able to solve the needs of our clients as they come knocking on our door. So let's talk a bit just high level about products. I know there's a lot on this. But again, this, I think, does a nice job of illustrating just the really diverse set of capabilities and solutions that you'll see within, again, a dynamic wholesaler like Bridge Specialty Group. And this is international as well as national. So we've got capabilities certainly outside of the U.S. We partner very closely with Mike's team in London, our team in Italy and Belgium as well to bring, again, the broader set of markets and capacity we can to solve the solution, whether it's domestic or international. And just kind of again to highlight a couple of those from agriculture, bloodstock, cannabis, a lot of executive risk business, financial institutions, health care, business that it's funny over the last 10 years, a lot of that might sit in the standard marketplace, and you've seen really that shift over the last couple of years into our world. And so part of our strategy, again, is building up those vertical centers of excellence and deep expertise, whether that's on the brokerage side or on the contract binding underwriting side to be able to deliver a solution to our retail customers. And it provides, again, open opportunities for Chris' team to be able to partner with us and deliver specific solutions for one of those segments that's in a highly specialized way. In terms of capabilities on the left, this is really more just to kind of drive home the point, not your traditional wholesaler. There's a lot of pieces to kind of the Bridge Specialty toolbox. And again, a heavy focus on data, analytics, technology and other solutions as well. So as we think about building for the future, and I would say this has really been the last couple of years, it's not something kind of going forward. It's more about where we spend our time and our investment and our focus. You've heard from all of us, we talked about the power of we, that greater internal connectivity, so many opportunities within our 4 walls here, but the ability to kind of leverage some of those solutions, capabilities and investments to better our clients. From an expansion standpoint, I'll just point out a couple of the acquisitions in the last year and their impact on us. We recently announced an acquisition up in Vermont, New England excess Exchange. Why did we go after that business? Well, it expanded our distribution. We didn't have a very strong footprint above New York. This gave us Vermont, New Hampshire, Maine access to over 1,200 agents. It was a very strong, well-run, well-managed contract binding platform that looks a lot like our other businesses. And so strategically, it doesn't lock for us. It gives us more retail distribution partners. It solidifies and strengthens the portfolio we have with key trading partners. Because now instead of just being heavy in the Mid-Atlantic or Texas or Florida, they've now got a New England -- sorry, a Northeast piece to that business as well. The acquisition we did in London last year of BdB, it may seem very foreign, no pun intended, to what we do in the U.S., but the operating model is almost identical to the operating models we have here within our contract binding shop. So we are very comfortable with that operating platform and the trading partners and carriers that they use and partner with are the same partners we trade within the United States. So on the expansion side, we'll continue to focus on finding good cultural fits that bring product expertise or distribution capabilities or a geographic footprint that doesn't match. We've got a nice pipeline. There's a lot of firms out there. There's obviously been a lot of acquisition work in the wholesale space over the last 10, 15 years, but there still remains a lot of good ones. And if you don't believe me, come with me to San Diego this weekend at WSIA for seeing 10,000 wholesalers, if you believe it, in San Diego for 3 days, probably the more people ever -- they've ever had at WSIA, so again, very active space. Distribution, this is our lifeblood, right? So taking that 17,000 retail partners and continuing to create the right incentive structure to grow those relationships, bring solution sets to them. But at the same time, recognizing certainly on the transactional E&S side that changes are coming and making sure that from a digital standpoint, we can deliver products to clients on their terms where they want to be met. So whether that's an API connection, whether that's a portal, whether that's just taking an old fashion e-mail and processing it and continuing to advance and invest in that space, which goes into operations, technology, data, digital. You'll hear the same thing from Chris. You will hear the same thing from Barrett. These are key areas of investment and have been for a number of years. We'll continue to plow in because this is a data game. It matters to the carriers. It matters to our retailers. It helps us be more impactful in terms of bringing the right solution sets, and seeing the opportunities for our customers and bringing the right products to that. Capabilities, product development, vertical practice groups, an area of focus with my background and programs, you'll continue to see us delivering proprietary product solutions that are really exclusive into the Bridge Specialty Group channel. And lastly, talent, right? I mean I've got to end with that. I'll start with that. I mean this is a talent game. It's always about having that pipeline for new people coming in. We continue to see strong activity of people looking to get into the wholesale marketplace and making sure that we create the right incentive structure for them to, again, grow their careers here at Brown & Brown and finish here. So with that, I will happily take any questions.

[indiscernible] from Piper Sandler. When you're thinking about building out your wholesale operation over time, are you considering the sort of permits -- are you considering to permit the surge we've seen in the CAT-prone property as a secular or a cyclical change in the E&S market? And does that have any impact on how you're building out your business?

Well, as -- and I believe I heard that question. I think I mentioned earlier, we are -- although we write in that space, funny enough, it's not the driver most people think compared to maybe some of our competitors. So I think we've got a fair bit of insulation if there was suddenly a massive swing the other way. That said, I think when you look at just where -- again, the reinsurance marketplace is, there is not -- I don't know how many billions of capacity we lost last year, but I don't see it all coming back in on January 1. There's still legs to this market. I think the challenge on the property side that all of us in this industry that are dealing with this and deal with the client and have that empathy for the customer are recognizing is you can only continue to push 20%, 30%, 40%, 50% rate increases to a point. And we started seeing that this year. I mean we started seeing the rates may have gone up, but don't assume that means the revenue for everybody in the space is going up because in a lot of cases, those clients just -- they've got a budget, and they're just going to take more risk themselves and they're going to buy less limit. Barrett sees it, Chris sees it, I see it. And so I don't see the market softening any time soon. I don't see business swinging back from the E&S space. I would tell you our inventory levels are strong across all lines. We still see a lot of property opportunities. But I don't think you will see, in my opinion, 100%, 200%, 300% increases continuing in perpetuity.

[indiscernible] with Wells Fargo. Just a quick question on which E&S lines do you think over like the long term won't go back to the admitted market maybe because risks are just too complex and carriers are just trying to get out of some of the volatility, especially with CAT activity kind of above the long run and most likely going to continue? Like I guess, which E&S lines do you think will stay in that space and will give you growth potential moving forward?

Well, as I mentioned, about property, right? I think property still has legs. I think the personal line space is still shaking itself out. There's obviously a lot of pressure on state regulators here in Florida, my home state of California to kind of get the standard markets back in, but it's not an easy fix. I think the -- I mean I'll answer it from the other side. I think we've seen probably more pressure from the standard markets coming on the professional line side. And you're seeing that with the rate activity and what we're seeing in that space and this level of competition. So we're already seeing that one starting to swing a little bit. On the casualty side, a lot of it comes down to the underlying performance of the account. To some degree, the complexity as well. Lines like public entity, where we -- again, we do a lot in that law enforcement liability, I can't see that business going standard anytime soon. I think on the casualty side, again, carriers do need to grow. I know they weren't -- they weren't earning profit, but they also want to see some growth in the top line. And so I would expect to see some of those segments, maybe even some with a little hair on the account starting to move back into that space. But it's been slow. We haven't seen that aggressively over the last year.

Okay. No more in the room. Whey don't we -- because we're a little behind on some time. So Steve, thank you. And then Michael...

Thank you, Andy. Good morning, everyone. I'm delighted to be here. My name is Mike Bruce. I was appointed to the Brown & Brown Europe business about 8 days ago. So fairly new in the role, but I've been around a little while. I'll try not to. Just in terms of my background, as Hyatt knows, I was a mathematics and physics graduate. And when I graduated, I did some rather interesting things like writing fingerprint systems, sonar systems, the system that you structural control the creation of nuclear warheads, down in all [ dimensions ]. So as you can imagine, the ideal grounding for career in insurance broking. But I got into insurance broking about 20 years or 22 years ago. And in that time, I've had leadership roles in U.K. retailers, London market wholesalers and also global sort of international brokers. So quite well-rounded background. Previously, before joining Brown & Brown in July -- or July 2022, I was Chief Executive, GRP. And just as a quick aside, both Powell and Barrett talked about on acquisitions, that magnetism. And I remember the first time I met Powell, 8th of November 2021 for breakfast and we had a 45-minute breakfast in the diary that took 3.5 hours. And that was purely because as soon as we met, I realized there was huge similarities between how Powell thought about the business, how Brown & Brown operated versus my business GRP, and that was really the start of that journey. So in terms of what I'd like to cover in this presentation, Brown & Brown Europe or the other businesses that are headquartered in the U.K. and Ireland, but may have locations outside like Europe, U.S. and a couple in Asia. So I'm not going to be covering some of the North American businesses that are embedded in Chris, Steve and Barrett's businesses. I guess the key takeaway from this is it's really important that we don't think Brown & Brown Europe, we're playing for 6,000 miles away, running an opposite direction. I see the Brown & Brown Europe is actually providing geographic reach to the strategy you've heard about so far, executed locally by people who understand those local markets. So it's really important. We just see Brown & Brown Europe as an extension of all the presentations you've heard this morning. If you look at the left-hand side, the word discipline has been used a number of times already this morning. You can see how the businesses that comprise Brown & Brown Europe have been built over time through a very disciplined investment, there hasn't been a rush to put a flag in the map and buy businesses in an ad hoc way. And as it started in 2008 with the investment in creating an in-house broker Deckers that provided London market placement for the Brown & Brown offices in the U.S., initially focusing on property, but that's broadened out to cover other lines of business like transportation, financial lines, et cetera. Quite a hiatus there. But in 2021, the first retail business was bought in U.K. and Ireland, which was O'Leary in Ireland. Again, a really strong family-led, community-driven broker. Rapidly followed into 2022 by the acquisition of GRP, which extended the retail platform to include the U.K., but also gave us our first programs capability outside of the U.S. and added further skills to the Deckers capability. So again, all these acquisitions are additive, bringing new capabilities and new skills to the group as opposed to duplicating what we already have, are really key points of the acquisition strategy. In 2023 quarter 4, we're hoping that we will be completing the Kentro acquisition. And again, another program business. But again, they provide a whole new set of products and a whole new set of broker relationships to the business we already have in the U.K. In terms of how we think about the business, we've covered that in a little bit. It's very much a replication of the Brown & Brown playbook. It's local sales and service, it's entrepreneurial leaders. It's the same growth drivers. And actually, we organize in exactly the same way as in the U.S. So it's a real replication of what you've seen works incredibly well in the U.S. Chart on the left-hand side, just to clarify what those numbers are. That's different to the previous numbers you've seen in the presentations, that's a trailing 12-month revenue figure, which includes an annualized pro forma for Kentro. So that's more illustrative as opposed to the audited numbers that Andy provided earlier. You can see that $465 million of revenue. A business of scale, we have over 3,000 teammates. We operate out of over 150 locations. So again, we have a business of scale in Europe. And you can see the actual distribution of the revenue across the 3 divisions we've talked about already. The Retail business is the largest. We placed in the U.K. and Ireland, we handle personal lines all the way up to global businesses who need international placements. The balance of the business though is in the regional SME market. Within the U.K. -- over 99% of the companies in the U.K. defined as SMEs, which is less than 250 employees. So we think we're in a really, really good place. It fits our model of small businesses who want advice from an individual who I can and have a relationship with. They don't want to be going onto the web and getting a quote and guessing if it's the right cover. So we think we're in a very good place in terms of our distribution platform there. As we do want to in a real cross-section of regional SME business, we have no gain huge geographic buyers, no private buyers and no trade buyers. So it's a really, really nice balanced portfolio from an underwriter's perspective, which actually ensures in the same way as Chris and Steve and Barrett said, we actually delivered real value to our underwriters, which again is so key to our model in the U.K. So as well as the general capabilities, we also have niches as well. We have businesses that focus on trades or industry sectors. We have farming businesses. We have solicitors. We have motor traders. And from a product perspective, we have professional indemnity, motor trade or gain, cyber. So we have the broad distribution supported and complemented by the local -- some local businesses who are real experts in a certain topic. Steve touched on the wholesale, the components of the wholesale model. When you combine the 3 investments we made in the wholesale with Decus, BdB and Loma, we're actually a top 10 large broker. So real business of scale again, we'll weight in the market. And just to reiterate the part that Steve made, we get our distribution from our business from third-party brokers but the key part of the value proposition of our Lloyd's business is to provide access to that market. So all of the divisions in the U.S. as well as our other businesses around Europe. Steve mentioned a number of the niches earlier. We have bloodstack, fine art, professional lines, marine, U.K. and U.S. property. The list is endless. We really got some, but again, it's all-around good quality people who are experts in those sectors. And National Program the same story. We've grown through acquisition of GRP and Nexus to follow soon. Those businesses are very complementary in terms of how they approach business but it's a totally different product set and totally different areas of distribution. So again, one of our opportunities going forward will be to cross-fertilize and cross-pollinate the relationships we have in the U.K. with some of the products that Nexus and Kentro will bring to the party. The chart on the left shows where we are in terms of presence. You can see very heavily retail-focused or totally retail focus is in the U.K. and Ireland at the moment. Strategy going forward. Clearly, organic growth is a key part of the play but also we will continue to look at potential acquisitions. We permanently evaluate opportunities, and we use the lenses -- the round of own lenses that you know about from a geography perspective, look at countries where there's a rule of law, stable government, stable economy, and if it's how to pass that test, we do look at the business itself, does it have the right cultural fit and does it make financial sense? So we apparently looking at businesses across the platform here, but we have got very, very strict discipline, which Scott will talk about a little bit later on. It's really important because there are other businesses in Europe who adopt a very, very different strategy to our international expansion and that's looking to plug a flag in a map with no real thought or just to sort of show, we're a big global business. That's not what we're about as you know. We also talked earlier about sales [ touch ] and when we do an acquisition. It isn't just about buying revenue or profit, it's about buying new capabilities, new products, new classes of business. So an acquisition as well as working financially also has to bring something new to the party to complement and help expand the whole of the business. And finally, how [indiscernible]. We bought businesses that -- actually invested in businesses which are very complementary. The trick now is to really combine them together as businesses, we're all better together. So it's taking those skills and capabilities and very distribution channels and actually merging those together, aligning capabilities, part of my role [indiscernible] leads in London is to make sure we can join the dots between the experts in London and the people and Steves, Barrett and Chris as well, so we can get real connectivity between the balance we have in London and the huge distribution in the U.S. So really exciting times. We will continue to make investments, as we've said but it's all on collaboration. I think my role is very much as a -- we have some great businesses in the U.K. and Ireland and Europe with great leaders. My role is to work with Steve, Chris and Barrett to navigate how we best collaborate together globally. We just have that extra dimension of time zones and 6 hours travel, et cetera. Now, I got happy to take any questions there, I was a bit quicker because obviously, a lot of the detail have been covered in the previous presentations.

Mike Zaremski from BMO. I believe GRP grew fairly rapidly over the last decade through acquisitions. Do you expect a similar pace of rapid acquisition like growth in the coming years?

We always look at businesses all the time, and we have the same approach as Brown & Brown. We never had targets. It was all about finding the right businesses with the right fit, et cetera. So yes, we talk to businesses all the time. So would expect to be some continued acquisitive growth. But again, as Powell mentioned earlier, we don't have targets, it's all around bringing something new to the party. There's still over 3,000 insurance brokers in the U.K. So there has been a good degree of consolidation but there are still -- there's still more to go a bit like Steve's example of CIB next week when he has thousands of wholesalers there.

It's Greg Peters with Raymond James again. So some of your peers operating in the U.K. market have really -- in the headlines about paying up for some of their competitors. Can you talk about your ability to retain talent and then talk about as you're going out looking at other properties about the pricing of that in the context of what some of your other peers might be offering?

Yes. I think retention is being part of the Brown & Brown team has really held retention. We were previously private equity owned, which was a good journey. Frankly, we did have good investors. But ultimately, we're for sale every 3 or 4 years in that model, and it was fine for me and who's used to that model sitting in London being quite relaxed with that. But we've got 2,500 teammates working in local and provincial offices, worrying what is going to happen to their job in a few years. So that was one of the reasons having got to know Powell, and I was really very keen to become part of the Brown & Brown team because we've built a great -- we bought great businesses in the U.K. We've invested and recruited great people to give them a long-term home where they can find and develop, was really important to me. So I think we're in a really great place now. So it's been -- it's really helped retention. The second question around valuation. Yes, again, the valuation -- a lot of people expected valuations of businesses to go down given sort of the interest rate rises. We haven't seen that yet. I think that's being pushed up in the U.K. because there are some smaller consolidators who are PE backed and they have money burning, a hole in their pocket and probably they need to deploy that capital, which, to some extent, encourages maybe a less disciplined approach to pricing. We've always been really disciplined with our pricing. We've done well over 100 deals. So we do know how to value our business but we also know when to stop. We always say the best deals we do are the ones we walk away from because that proves we have that discipline. So we look at businesses, we know the right value for the business. And if the right business comes up at the right price, subject to agreement with [indiscernible], et cetera, we'll be happy to talk to them but we're not going to pay that prices. We don't need to, we have a long-term business here. We don't have to build EBITDA to flip it in 2 years' time, which some of those competitors have to.

Meyer Shields, KWB. I just want to confirm, is everything outside of either the United States or North America, your remit, so Latin America, Asia, et cetera?

Yes. Well, in terms of geographics, very clearly, we have very well, nothing in Latin America and a very small so nascent presence in Asia, which will come via the Kentro acquisition.

Okay. But that's all under you.

Meyer, just for clarification. So we kind of you look at Europe or international in there, right? So those are all the businesses that report up into Mike. Our Canadian business in Bermuda and Cayman Islands report back into the States here.

Charles Lederer with Citi. I think you've said the organic growth profile in Europe has been similar to the rest of the business at Brown & Brown, I guess, longer term or medium term, just given the lines that you're in and some of the deals you've done recently. How do we think about that growth profile versus the rest of the business?

From the European business, it's very similar, broadly in line with the numbers you've seen from the other divisions. It's a very similar playbook based on the customer base. So it's really pretty much totally in line with the numbers you've seen already.

All right. Thanks, Mike. All right. Perfect. We're going to do this or going to.... Just kind of think we have about 5 minutes before we go to break.

We're going to do this for 5 minutes.

Got it. Okay. Do it.

And I also wanted to answer 1 of the things for Greg's benefit and everybody else's. Number one, as you can see, Mike is like-minded with our team, which we're very, very fortunate to have Mike and the team part of Brown & Brown. We weren't looking to do a large acquisition in England, it presented itself. And so that is -- we had always thought there might be an opportunity but we had not found the right one. The other thing that I think is very important to stress here is that Mike and his team did not run that business like a private equity firm or a private equity backed firm. As you know, I don't usually think that much about how those are put together because of the way they think. Mike and that team, you wouldn't have known they were owned by private equity because Mike and their senior leadership team shielded them from everything. And what that means is they grew the business organically and acquired businesses that grew the business in an acceptable manner. So they got to run it their way. So we got a lot of cool opportunities there, but it starts with him, and you can see why. And so this is 1 of those things where I know Mike's wife, Debbie, like I've met her during the acquisition process, I wanted her to meet me and us. The other thing that I'd like everybody to know is that when we announced this transaction in March of 2022, Scott Penny, Barrett, myself and Mike gotten planes, trains and automobiles and went out and met 1,000 teammates in 8 days. And when you go out and shake hands and meet the people, and talk to and try to gain the hearts and minds of the team. You would be interested in knowing what was the biggest question or 2 biggest questions that they had. It's very simple. Number one, do I still have a job, which is, are you going to consolidate a bunch of the small business into 1 location, Birmingham, Manchester, whatever, and our job and you're going to automate it. I'm out of a job. That's number one. and number two, I want in on the stock plan. I had more people, Greg, I've never seen it like this where we described the stock plan. This is what they'd say. I had 2 or 3 ladies on the team in different offices, who said -- I said, "Yes, ma'am". "When can I get in? I'd like to give the money today". I said, "Well, we haven't even closed yet." "No, no, no, I still want to get in." I said, "I'd like to assure you that you will be able to participate", okay? So here's the thing. This is awesome. in the first year of the equivalent of the employee stock purchase plan is called the Save as you Earn plan over there, 45% of our teammates decided to participate in some capacity. And remember, the economy in England has slowed a little bit. I thought that was unbelievable that 45%. So people want a piece of the rock, which is that ownership thing. I want to briefly touch on Services, and I'll close in 3 minutes or less. What is our Services business. You know that this is a claims paying or advocacy businesses. And if you think about it, we have everything from programs type related claims paying businesses to stand-alone workers' compensation, professional liability, general liability, automobile liability, we do individual claims on homeowners. We do all kinds of things in there. And we have this other business called the advocacy businesses, Social Security disability Advocacy and Medicare Set Aside businesses. What we've found fundamentally in this is we haven't seen the growth like we've seen in our other businesses -- and I think it's -- if I were boiling it down, there's a little bit of variability like this because of claims paying, you have storms, you have things like that, you're going to have up years. When you don't have storms in the affected areas where we adjust claims, you may not have that revenue. And quite honestly, the other thing is a backlog in the United States government paying disability claims and Medicare Set Aside claims. Hard to believe, but true. So I think that when I think about those businesses, I want you to think about our ability to have nationwide claims paying scenarios, but we do specialized claims services in the advocacy businesses. So these are -- the other part of what I call the outsourced insurance company model. So inside of Chris' business, if you were to go into Chris' office in San Diego, if you didn't know better, you would feel as though you're going into an insurance company. Actually, it's even better than going into an insurance company because there's high energy and a bunch of pumped-up people, it's good. And so having said that, this is embedded in some of his business but it's also outsourced services that we provide to our carrier partners. Having said that, before we break, do I have one moment for a question? I'll take one question if anybody has any questions on Services because I'm concerned that you need to break. Okay. Having said that, what is the story and then we're on a break.

We have for everybody online, we're going to be taking a break until the bottom of the hour, so 10:30 for everybody here in the room. Bio, there's also snacks out there for a break, and we'll be back in here and start at 10:30. Thank you. Okay. We'll go ahead and get started. So the next section that we have for the remainder of the morning, we've got Scott Penny, our Chief Acquisition Officer, who's going to lead a discussion around our approach to M&A, and we'll let him go through and do his introductions. And then Julie Turpin, our Chief People Officer, will talk to you about our overall people strategy for all of our teammates. And then Gray Nester, our Chief Information Officer. We'll talk to you about what we're doing on the technology front and our strategy and then I'll go through financial and then Powell will wrap us up for lunch. Okay. Take us away Scott.

Okay. Well, good morning. Actually, some of the stuff that I might say, you've heard it before, and that's because it's tried and true. So bear with us as we continue to go through and reiterate what's important inside of our organization. It's interesting because I've been a salesperson at Brown & Brown for the last 34 years. I started here in Daytona Beach as the assistant to the assistant. So I've done a little bit of everything. We have the opportunity to take on my first leadership role in Jacksonville about 3 or 4 years after we had acquired that office. And then after several years there, I've moved to Indiana, took over an office that we have just acquired 12 months before that had a -- that was our first entree into the Midwest. And then as Powell mentioned, we acquired the Riedman agency, which actually got us into the Midwest in a larger way, including the Northeast. And then, at that point, started operationally to build out -- help build out the Midwest and our Northeast presence. So as you know, today, I'm the Chief Acquisitions Officer, but I became the Chief Acquisitions Officer in 2011. So I've seen a lot, not only since then but prior to that. And actually, prior to 2011, I was thinking about this, I actually have had the opportunity to lead, operate and acquire as an operator in all 4 of our segments. So I think that's one of the reasons why Powell may have asked me to kind of step into this role because I've seen a little bit of everything. And so we use the term Chief Acquisitions Officer. And the best way to describe what I do, I'm going to use a term that we don't actually use internally. And the term is I'm in effect, Brown & Brown's internal investment banker. So you think about, well, what does that really mean? An investment banker, all they're looking to do is do deals. And you've heard us say, we don't have a goal. The goal is to do deals that fit culturally and make sense financially. So the difference between what I do or what we do versus a traditional investment banker, traditional investment banker just wants to do the deal. So as a shareholder myself, along with the 10,000 global teammates shareholders that 63% of the 16,000 that Powell mentioned. So we have over 10,000 teammate shareholders. So between us, when we're actually looking at a transaction, we're not looking to get the transaction done, we're looking at getting -- making the transaction successful long term. That's the name of the game. And so in effect, my responsibility is to help evaluate every acquisition that we do, period. We've got a team of folks around us but we, in effect, are an extension of our 4 segments. We don't do anything by ourselves. They don't do anything by their selves. So think about it as a hand in glove relationship. So what I'm going to actually do is talk a little -- or just mention about why we do acquisitions. I think it's already been said before but just kind of give you a little bit of color today on the day of the life inside an M&A prospecting opportunity. But before I do that, I'd like to maybe just share with you 3 or 4, 5 kind of guiding acquisition tenants that we basically subscribe to. So it's already been said before but the best deal is often the one that you don't do. So the best deal is often the one that you don't do. This has been said, I think by every leader before me that all deals need to make sense or fit culturally and make sense financially. The Next hasn't been said, but I think it's been inferred, and that is that we don't do a deal without a senior leader sponsor. The acquisition team doesn't do the deal and say, "Here it is." We are actually doing it collectively and they're alongside us from the pro forma through the close and through the integration. We have a disciplined process to follow the process. And the last one that I'd just share with you is -- and you've heard everyone up here talk about culture. The right culture creates long-term shareholder value, period. So having said all that, let's just talk about why do we do acquisitions. Powell alluded to this in his opening remarks. We want 1 plus 1 to equal 3, 4, 5 and beyond, what do we call that long-term shareholder value. If 1 plus 1 equals 2, we're not interested. So if you think about -- you can see on the screen there, we talked about talent that fits culturally. There's been a lot of discussion about the other 3 bullet points. And that ultimately drive the success of an acquisition. It also drives the long-term shareholder value, enhancing our capabilities. And I'll talk about that when we get to the last slide there. Barrett talked about enhancing capabilities quite a bit. But we can't overemphasize the fact that, I think Powell mentioned earlier that we're not just Florida owned agency anymore. When I started in 1989, we were Florida-only. We also $25 million revenue. Think about that. And so when we expand geographically that allows us to go across multiple economies. So we can -- we can average out the economy that's hot versus one that's struggling versus middle of the road. When I first started, we couldn't do that. We were Florida, Florida, Florida. We're a different company today. Likewise, when we make acquisitions, we increased our premiums with our insurance company partners. So you heard Chris and Steve talk about CAT, and you guys were asking questions about CAT. How do we get more CAT? Part of the way we get more cat is we diversify our book. How do we diversify our book? We go to Europe, where Mike is. We've got to Europe. And so now we can say, hey, we just added $150 million with you that's non-CAT, give us more CAT. We didn't have that before. So let's now just talk a little bit about why or about the how. And this is where you kind of get into the day of the life of what we do every day. And so we've talked about cultural fit. Everyone talks about culture, but how do you make sure it's a fit. And I would tell you, it's art, it's science, just kind of mushed together. It starts with spending a lot of time with high-quality people, spending a lot of time. It's interesting. You show up at many first meetings, and they say, "Well, how are you going to pay?" And I said, "Well, well, well, wait a minute, who said we were paying anything. I don't know you and you don't know me." So I don't know how many of you got married on the first date but I didn't. And we do actually think about cultural fit and acquisitions as a marriage. It's forever. And so ultimately, we spent a lot of time with candidates. And that's both in the office, that's out of the office. As Powell mentioned, it's with spouses, significant others. And so quietly, we're fortunate that many of the acquisitions candidates that we talk about, someone in our firm already knows them. Whether they know them or not or whether they've come through a third-party source, we go through the same discipline process. And so I'm sitting there quietly having these conversations and thinking to myself, this is my innerself, so be careful, scary here. Would I be willing to invite these folks to my house with their family and with my family to have Thanksgiving dinner. Not talk -- don't talk a lick about business during that event and actually enjoy our time together. So that's what my inner voice is asking the question to myself, the first time or when I'm having spent some quality time with the candidate. And if the answer is yes, then they pass the first test, they didn't even know there was a test. I call that the Thanksgiving test. And then from then on, as you're continuing to have conversations, you're thinking about, are these team players? Could they subscribe to the power we or they're using the vertical pronoun. We don't use the vertical pronoun an "I " here at Brown & Brown. It's all about we. So you're listening, thinking about how are they having that -- how are they thinking about themselves. And then thinking about others. Oftentimes, we're at a restaurant or you're in a you're in a cab with them or a ball game or whatever it might be, and you're thinking to yourself, well, first of all, how -- if there's multiple sellers, how do they treat each other? How does one seller treat the other seller, how do they treat the waitress, the cab driver, how do they treat their team if you get an opportunity to go into their office? How do they treat carrier partners, carrier partners talk about other agents. And in some cases, when you come behind them or you're competing with them, how do they treat their customers? So you continue to go through this process, and Powell alluded to this earlier, you get to the pivotal moment. The pivotal moment is it's like when you thought you're going to propose, right? You've got the science, you got the art, sometimes you just have the emotion. We try to take the emotion out with a disciplined process but that is do they want to be with us. And so we call that capturing the heart and the head of the seller. If you can capture the heart and the head of the seller, that means they want to be with Brown & Brown. Price is always important. Take price off the table. We haven't even talked price yet. And if that's the case. So why is that important? because we're in the people business. And if we have the head and the heart of the sellers, we need them, people work with and for people. We need them to deliver their team. And if we have their head in their heart, they will deliver the team. And I find it interesting that a lot of people talk about integration risk and they attribute integration risk to post close. I don't actually think of it that way. Yes, we have post-close integration, trying to get our -- get the privately held companies books closed faster than they ever closed before because we're publicly traded, get converted to GAAP and all that kind of stuff. But ultimately, I would tell you the difficult -- the most difficult and yet the most important ultimately integration piece is the culture. And we actually take care of that upfront before we even consider writing the cheque. So then how do we figure out what cheque to write? How do we figure out how to structure the transaction. So we apply a disciplined approach over -- on the principal side here. We apply a disciplined approach. So we ultimately -- can you go back to the slide before that, please -- so we ultimately have a standardized process from building the pro forma through integrating on how to do each and every transaction. And so we have a whole array of threshold and metrics that we use, some financial, some nonfinancial. And ultimately, we compile all that in working with the regional leaders, and we come up with a construct. Most of our deals are 100% cash. We are willing from time to time to utilize our stock. And most of -- pretty much all of our deals, we're buying 100% of the business. Most of our deals, there is some opportunity for them to continue to get some more money off the table. We call that an earn-out. In the U.K., they called an earn up. So same thing, just different terms. So if you look at the acquisition overview slide there, I think it says that what it might say to you is that 7 of the last 10 years, we've acquired over $100 million of revenue. Yes. It says something else to me and Barrett touched on this and so did Powell. It says that we actually executed a plan that we laid out in 2010. That was before I became Chief Acquisitions Officer. So I was a Regional President inside of our Retail division at the time. And Powell challenged us that day and basically said, "What do we need to do to double again?" So we set around and one of the things that we concluded was we needed to go up market. You heard that from Barrett. So how are we going to go upmarket? Well, why do we need to go up market? Well, we needed to go up market because a number of our customers that we grew up with basically had grown. And if we didn't keep up with them, they were going to wave us bye, bye. And the other, we were just getting too many new business opportunities, and we needed to cover the gamut. So we decided how are we going to do that? This is 2010. We're going to buy it or build it. Actually, we're going to do both. That's what we said we were going to do. So Powell alluded too in 2013, what did we do? We bought Beecher Carlson. Large account property casualty business. 2014, what do we do? We bought a large account nonmedical ancillary benefits business, only focusing on Fortune 500 customers. 2015, what do we do? We acquired and Powell mentioned this, we acquired a medical -- large medical benefit shop that had tentacles really all over the Northeast, which we've since expanded. And then Powell alluded to this, in 2018, we bought The Hays organization, which I had only been getting to know Jim Hays for 20 years before he ultimately said yes. But they have both large accounts, medical or employee benefits and property casualty. And let's not forget, Mike talked about collaboration. In buying those businesses, they were other than Hays, which was multiline, the other was either ancillary non-medical, medical or property casualty, all in the large account space. So what do we start doing, cross-selling between the 2. So as Barrett talked about today. So that's just 1 example of we do have various initiatives and strategies. We can't really share them with you until kind of after the fact because if we shared some of those things with you today, then everybody would know what we're trying to do, and they try to outrun us. So with that, I'll pause and see if there are any questions.

So given your long career and involvement at Brown & Brown, it's nice to be able to talk to you because you don't answer questions on the conference calls. But one of the things that we all have observed that you guys have had to live with is the rising multiples on M&A. And maybe give us some of your perspective of where the multiples are today, especially with interest rates being higher, and what you're seeing domestically? I know I asked the question before of the international -- on the international side, but talk domestically about the pressures you're seeing on pricing, et cetera.

Yes. Well, I would start by saying, Greg, a multiple of what, right? So until the industry actually comes up with a common metric or let's call it a GAAP metric of a multiple, we don't talk multiples anymore. It's all about return, use of capital. And so I think our logical head and our financial mind would say that interest rates have gone up substantially, and therefore, multiples need to come down. The reality of it is there's too much capital out there. And so while interest rates have gone up, there's still what I'll call too much capital, dumb money, whatever you want to call it. And ultimately, in our industry, we've also had rate -- insurance rates going up too. So I think until insurance rates start to level off or come back down or interest rates start to come back down, and I think I'm not -- I think -- I'm not sure which one is going to come down first. But if we continue to have high insurance rates, ultimately, there'll be enough capital. Yes, I'm sure that their return models have -- they're getting less returns but it's still a good return. It's not like the good old days but it's still good. And so what we have seen is you may have a premium asset that, believe it or not, might actually interview 30 firms, 30 meetings. Can you imagine that? We're not interested in that, by the way. If they're going to go through an auction process, forget it. And our advice to somebody who's going to go through that auction process, why waste your time or if you're going to go through, figure out the 5 you think you want to be with, meet with those 5 and then go get off in a corner and figure out how to do a deal with one of them. So you may have 30 people interviewed, let's say, a year ago. And in this example, you might have 15 or 20 actually offers. Today, you might have 7 to 10 interviews but you'll have 5 offers. Those 5 offices are really -- are all good offers. You'll have 2 offers that are actually low, you'll have 1 that's kind of middle of the road and then you'll have 2 outliers. But as far as multiples, multiples really haven't come down.

Meyer Shields, KBW. I'm not sure if this is just a question for you or for Powell and Andy. But the brokers that are bigger than you also have adjacencies and consulting that goes beyond employee benefits brokerage. And I was wondering how you think about that?

Well, what we know today is our core, and it's worked well for us. So we're going to continue to do the same over and over again. That doesn't mean that it's also what we what we know today and works best for us, we're open for new ideas. But we -- if you're -- I'm not sure exactly what you're referring to but just because someone else is doing it doesn't mean we're going to do it. We like to stay within our core line.

Yes. Meyer, if I could just touch on that real quickly. I think Barrett went over a little to this before. I think when you look at some of the other brokers that are out there, the challenge in all of this is how do you get to an apple to an apple. And in most cases, when analyses are done, it's apples to bananas. And you can kind of see it when you look at our numbers, right, in the way in which we lay things out by segments that's why the discussion earlier about wholesale and programs, if you really want to compare it to others, you almost need to put those 2 of them together. If you start to then say, well, there's consulting businesses and these others, why are you guys not in those, we have health care consulting. We do a lot of the same thing that sits inside of retail. So we don't break it out in that fashion. Now there's other things that we don't do inside of those -- some of the other brokers that do. So just important to maybe ask some of the questions to kind of tease those apart, generally, we probably have that inside of our business already.

Is there a way to think about tuck-in acquisitions in terms of -- it seems like that's more repeatable. Clearly, the big acquisitions are going to be a little more chunky but the smaller acquisitions are tuck-ins, given your size any numbers you can throw out? I mean, should tuck-ins be a couple of points of revenue in a given year, 5 points. Just how do you think, because as I said, it seems like that's more routine and so therefore, what is the expectation in your mind or what should we think about how tuck-ins will contribute aside from the bigger deals?

Yes. I mean, we really don't think in those terms of how we need to do X number of fold-ins or tuck-ins as you refer to it. Just because it's smaller doesn't mean it takes less time or it's less risky. So ultimately, we want to do as many deals that we can that culturally make sense financially. And Powell said the larger deals are always going to be lumpy. What I would say to you is we get to look at a lot of deals around the world. And so just because -- but we don't get to talk about anything except for what we actually do. So we're fairly active, but we're also picky because 21% of the company we own. So we think long term.

Scott, can I add to that? Mark, 2 things. One, we choose not to talk about all the deals we look at, okay? So we don't get -- I don't do anything for us. That's number one. Number two, and Scott has talked about it and Barrett and Chris and Steve and others. But at the end of the day, the first question is what are you getting with an acquisition other than a revenue stream or an EBITDA stream. And so sometimes in smaller acquisitions, there -- you've got to look carefully at the capabilities and the talent and what you're getting. And so I -- Scott and I are very -- we, all of us are very well aligned on this. But the answer is -- we don't want to do tuck-in acquisitions just to do tuck-in acquisitions. I think that's an important distinction. We want to do tuck-in acquisitions that can be one, accretive to our capabilities, not just accretive to our earnings. It's an important distinction. I'm not saying anybody else is doing something different but I'm just saying that's an important deal. Thanks.

Mark, this is why we think this slide is so important because we think it actually represents the rigor and discipline that we think about. If we wanted to just make up a number. If we want to do $75 million or $100 million every year consistently, we can do that. We're probably not going to drive the shareholder value that we do today if we implemented the -- we're going to buy X amount every year, right? So we don't have the PE model where we just -- we absolutely have to grow. Our goal when you look at it, look, in 2017, we did $18 million of revenue. And then we come to next year, and we do over $300 million. They're going to kind of come in waves for us. Why? We got to get that marriage correct. It's super important in our model. And when we do, the deals almost always work out for us. So if we have a year where we don't do a lot, that's okay. We'll probably have another year somewhere after that where we'll catch up in the cycle. And so we don't have this target number every year for the organization. So we'd like for all of our shareholders, think about it this way and why culture is so important to driving shareholder value and the alignment but it won't be consistent over time.

Mike Zaremski from BMO. Just the follow-up to your point about the episodic nature of the deal. Is there any storyline on kind of '15, '16 or maybe '17 of kind of why maybe your hit rate wasn't as high or maybe you weren't looking as hard or anything kind of reflecting back any secular trends that took place during that time frame that, that led to a lower deal volume?

That was a lot of deals ago. There was one thing, and I am -- I don't know like of what it was, but...

I'll tell you what it was.

Yes, go ahead.

We were trying to get our head around the purchase price multiples. And so it's funny, if you look back there in '12, we did the acquisition of Arrowhead and we paid $400 million and we paid 10x earnings. And everybody out there in the investment community said, Powell is changing the company. It's not about me but that's what they said. And by God, he's going to break it. We're going in the wrong direction. Well, we are changing the damn company because we love this place and it's one of the best acquisitions we've ever done. But we saw it in '12, a lot of other people didn't. And so I would tell you that's my impression in that period of time. We did a couple of large acquisitions in '12 and then '13 and then '14. So remember, that would be Arrowhead, Wright -- Beecher Carlson and then Wright, those 3. And so I think it's a combination of purchase price multiples and then figuring out, quite honestly, what we really thought and we wanted to be because there was a lot of evaluation of capabilities there -- out there that maybe we weren't either ready to get into or we weren't ready to pay up for. That's how I would answer it.

Yes. Mike, so look at '17 and '18 for a second. So inside of '18, that's got the acquisition of the Hays Group inside of it. So that was over $200 million of revenue. That deal could have closed in '17, right? So you can move it around between it. But if you come back to Scott's point about the importance of getting to know people, right, we could have somehow figured how to force that deal in '17, maybe if we wanted to. But if we didn't have all the alignment of Jim and all of his leaders, it may not have worked out as well as what it did today. So we're completely comfortable if things move between periods, but we get all the alignment we want, we're all good with that. So we were talking to a tremendous number of companies during '15, '16, '17. It's just -- they kind of come in at the right time. It's kind of like, "Hey, when did you have your best friend. " Well, I don't know, it just takes time. You got to get to know him. So that's why I say, think about that they're going to kind of come in, in those cycles. That doesn't mean that we're not talking to people. We're always talking to people.

Okay. Mike, I have one other comment that I think is important now, and I know you know this but I think, is really important. And Scott alluded to it earlier. There are firms out there that will sit down with a potential acquisition in the first 30 minutes, they'll throw a number on the table. And we don't do that. And quite honestly, we subscribe to the Scott Penny and the Brown & Brown philosophy, which is if somebody asks us, how should we do the process selling our business. It's a pretty simple answer. Go out and meet with a group of people that you think would be a potential fit, assess the cultural fit that you fit best with and then go get in the corner and cut a deal. If you want the absolute categorically highest price, you will probably be at private equity and then let's bring the future to the present, you won't be there in 3 years. So the business that you created and worked so hard and you say that you care all about the people, you won't be part of because you won't like the way it's run. And so some people listen to that and agree and some people don't. But we're not going to go. Scott Penny and I, the bankers, sometimes on these big deals, they say, we want a number. I love this, this is my favorite. We want a number upfront to see if you're serious. You're like, "Well, that doesn't work for us." We got to meet with them first. So Arrowhead is a great example. We said we got to meet with Chris Walker and one other person from there before we ever make an offer. And then the said why you can't do that. I said we're not paying -- we're not playing, and I think it would be a fit. So the point is, people work with and for people. They don't work for companies. And over all the time we spend talking to people, part of it is a learning experience for us. So I could meet with somebody, I'll make this up. I could meet with somebody in Germany. I just pulled that out of the air, and we might not do a deal in Germany anytime in the near future or ever but I take that learning and share it with Scott, and we talk about it and how they think about business there and how does that relate or not relate to England or Ireland or Brussels where we do have an office. So this is a cumulative thing, and that's an important. The idea of long-term corporate knowledge about businesses, there is great value. And what you're seeing up here is we're operators. I'm an insurance salesperson. Everybody else is an insurance salesperson up here, too, Andy, Gray, Julie, Scott, we all sell insurance. So the conversation that we have with people is much different than if you are a financial wizard. Or you -- that doesn't mean you can't be smart but what value do you add in terms of selling and servicing insurance if you don't have never sold an insurance. That's okay. I'm not questioning it. I'm just saying I view that as limited. They may help you control expenses but do they understand how to create long-term, sustainable, meaningful growth, which translates to value.

What we can do, we can take some more questions at the end on other topics, just kind of change. We want to get Gray up to cover technology. So Gray take us away.

Awesome. Good morning, everybody. So my name is Gray Nester. And since it's my first time chatting with you all in this forum, I just want to give you a little bit about my background. So I started in the insurance business writing software in about 1995. And then in 1997, I found my way to my first independent agency in Jackson, Mississippi. And so since 1997, I've been delivering technology solutions to enable businesses to help sell and service insurance-related products and really care a lot about helping people protect the things that are most important to them. But also think a lot about how do I partner with the business leaders and the operators that you saw a few minutes ago to ensure that we're enabling them for success that we're able to level the playing field and what all of our competitors are doing and that we're actually using technology to improve business outcomes instead of investing in things for the sake of investing in things. And so it's a little bit about how we think about it. When we talk about using technology around Brown & Brown, we talk about 3 things very simply. How do we make it work securely? How do we run it like a business? And how do we use it to improve results? And if we can't do those 3 things, then I don't deserve the opportunity to talk to you today. And so all of our people that we have that show up every day and work in our technology solutions organization, while they fit culturally and we have to make the right investments around talent and all the things that you've heard about all the other investments that we're making, we have to ensure that they align to wanting to do those 3 things. And so we've been very fortunate since I joined Brown & Brown in December of 2019, to be able to add some really talented people to this organization that are delivering technology solutions in a different way. And they're able to do that because they have different experiences and they've seen things from outside of the company. That doesn't necessarily mean that the teammates that have been here for a long time are not doing a fantastic job. I think about -- we've talked a lot about the Arrowhead acquisition, all the great talent that we got through that acquisition. I think about Joe Shomphe, one of our divisional CIOs that came through that acquisition that's still today as one of the best business partners that we have in all of our divisional CIOs do an amazing job delivering technology for the businesses they align with. So it's not all about how do we bring talent in from the outside. It's about how do we help people in their talent journey, be successful as we move forward. As we think about how this works inside of the business, one of the things that you might be asking is how are we doing from a technology investment perspective. A few years ago, we talked about the need to make some strategic investments in technology, how are those investments playing out. And so it's important to know that we are doing a really good job as it relates to technology, data, cybersecurity and innovation. You've heard about that from each of the operators this morning, and we're continuing down our journey of consolidating core platforms across the business. Where it makes sense and there's an appropriate return on investment, but if you were to go back 2 slides and you were to look at the investment dollars that we have in acquisitions, each one of those creates a new and interesting opportunity for us to continue down this journey. And so this is a journey, not a destination. There's not a finish line. We continue to invest a healthy amount of capital into technology, data, information, security and innovation around the business. As we think about data, it's really important to understand that we're not trying to do data for the sake of data. We're actually trying to figure out how to deliver actionable insights inside of the system of engagement. So where our teammate is, how do we deliver the information they need to help them have an outsized result? How do we help them have a better business outcome? So it's not about for us, how do we build these huge data warehouses and dashboards that people have to go outside of their normal journey to get to and then find information that they then have to go back and drop into where they were, but how do I deliver that information at the point of engagement so they can have that. Don't get me wrong. We have tons of data. You've heard every operator talk about how important that is to their business. And we have tons of systems that deliver very interesting analytics outside of that system of engagement. But if I think about the normal sales process, how do I enable one of our teammates to have a different conversation than maybe what somebody else is having with them while they're on the phone or in that meeting without having to drop out and find that information somewhere else. How do I enable them to win in the system of engagement. And then as we think about innovation, one of the things that we are very fortunate to do through our decentralized sales and service culture is, we're able to try things. So as Barry talked about the difference in providing insurance in Portland, Oregon and Miami, Florida earlier today, we're able to experiment with things inside of different market segments and inside of different geographies, see how those work, test and learn, fail fast. But when they're successful, we're able to then take them and scale them across the business quickly with the team that we've established at the enterprise to be able to deliver that across all of our teammates where that makes sense. And so I think it's a competitive advantage of ours to be able to test and learn in very different segments and in very different geographies and have that ownership mentality around the investments that our people are making in technology across the business, but also be able to roll those up and say, "Hey, wait, we're winning with this particular technology inside of this particular business does this scale. And so we think that makes it very unique for us. As we go deeper about data and artificial intelligence, I think I've been asked about data a handful of times already this morning. So I'm happy to answer any of those questions. But it is the biggest thing going on and it is one of our most important assets behind our teammates. And so there's a few things that we're doing in the data journey that we think are interesting and that you may want to know about. The first is how do we use our data to enhance the customer experience. And so when you think about how our customers want to engage with us and you think about when we're really successful, we're selling a very complex product across multiple risk bearers that have different delivery methods and different ways of integration into the service profile depending on what size account that is, how do we simplify that for the customer? And that all starts with how we integrate with our carriers, with our risk bearers. And it also starts with what do we know about that customer and how do we help them get to the answer faster. And so everybody in the world is trying to do this right now. It's not an insurance-specific thing, but we're doing this very successfully within our retail business, through a purpose-built business environment. We're doing this within our programs business and how do we build and develop new products to help people cover the things that are most important to them. We're using this in Steve's business, as you heard him talking about our ability to make sure that when somebody comes to us for a solution, we get the right people solving the right problems for that particular customer. And so that's really important. It also is helping us enable innovation. And so behind the enabling innovation point, is quite simply what Chris was talking about earlier, as we start to look inside of our data, we tend to be able to see what risk bearers are interested in and not interested in. And that creates opportunities for us to win and opportunities for us to deliver products to the market that the market is looking for, but nobody else is solving. And so that gives us a unique opportunity with the diversity across the business to really think about how we use our data to innovate in the product development areas of Brown & Brown and deliver unique and interesting solutions potentially proprietary products inside of Barrett's business that help us win more business. We're also using our data to fuel sales and growth. So a customer like you might buy products like this. How do you have that conversation with people? How do you talk about the products they're not buying? And how do you help them understand why other people are buying those products. And so, we're starting to see and have been seeing for many years back to the program slide, real wins within our data. We also have artificial intelligence deeply integrated into our business today. That's been integrated into our business in many different ways across the typical machine learning types of artificial intelligence. And we are beginning to work with new forms of artificial intelligence in different parts of the business to see how they may help us move things forward faster. Wouldn't be a conversation about technology if we didn't talk about cybersecurity. And also, it wouldn't be a conversation at Brown & Brown if we didn't talk about physical security because if the teammates the most important thing, providing them a safe place to come to work is really, really important. We have invested a tremendous amount in cybersecurity and in physical security around Brown & Brown to protect not only our teammates, but the organization, our data assets and the systems that we process on every day. And so there's a couple of things inside of this that I'm really proud of, the first of which is our cybersecurity awareness program. We have tons of money invested in cybersecurity programs, as everybody else does. But at the end of the day, those programs are only as good as the last actor. And all you have to do is pick up The Wall Street Journal and you'll read about the latest breach. And so the last line of defense in protecting an organization is the teammate, that sits in the chair every day and is educated around what a threat may look like. And so our cybersecurity knowledge at the desk level has increased significantly. And the number of phone calls that I get on my cell phone, actually makes me proud of our 16,000 teammates because when we go in and do one of our simulations, it won't be an hour. It will be minutes that my cell phone rings and somebody goes, "Hey, it's something going on because I just got like 30 messages at the same time." And so that's something that we're super proud of. Now we still have more to do, as does everybody else in this world is changing faster than any world you can imagine. And so we continue to invest in this, we continue to do the right things by the organization. And I think that, that is going to continue to be a place where we have to deploy more capital to protect the business and to protect our teammates. As we think about all of that though, it gives us a pretty interesting perspective because one of the things we get to do every day is we get to help people manage risk. And one of the risks that we talk a lot about managing is actually cybersecurity risk through our different cyber programs. And so with the addition of people like Barry Hensley and Rob Burch to our leadership program inside of our security organization that we announced, call it, 90 days ago-ish. We're able to take what we know, take those broad experience that they have before joining Brown & Brown and actually be able to help our customers think differently about how they manage their cybersecurity risk with the deep expertise that we've added into the organization. And we think that's one of the competitive advantages that we have. The last thing that I'll just talk about before we open the floor up for questions is we are trying at every turn to integrate security and the operating model. You cannot successfully go in and bolt on security after the fact to legacy systems and all of these things and expect it to keep up. And so, we have to continue to integrate that into the operating model, ensure that as we're building new systems and that we're thinking about risk that security is engineered in the process and not after the process so that we can appropriately protect those assets. So with that, I'll be happy to take a couple of questions.

Greg Peters with Raymond James. Chat GPT, large language models, generative AI, supposedly or potentially, can be game changing for a lot of different industries. Can you talk about your perspective on those technologies and how you're thinking about it inside both Brown & Brown and for your customers?

We're thinking about it and talking about it a lot. It will be game changing. We think that a significant portion of the workforce will do different things in the future based on the ability to implement platforms like that effectively. We think a lot about how it can help us enhance the business. We also think a lot about responsible AI and how we deploy it effectively. And so we are working right now on implementing a few crucial concepts, proof of technologies within the business that will go live, call it, over the next year. That will allow us to test and learn inside of the business and better understand that. We're also watching the regulatory side of that, Greg, because you've seen some things come out in California across the last 7 days. The U.K. and Mike's area has been very open about what type of licenses you may need to hold to deploy technologies and things of this nature. So I think it's one of these things that -- it definitely is going to change the world we operate in. It definitely is going to impact the workforce and move people into different types of jobs. It's definitely a great opportunity for business, but it's one of those things that while we're moving into it and we're moving at pace, we aren't moving into it blindly because we understand there's some real challenges around it.

Should technology reduce costs for Brown & Brown? Is that part of your charge?

So Mark, that's a great question. I think it depends on what you're talking about. If you're talking about a standard process that we've done for a long period of time, we should be able to get more efficient and effective through many different operating models, technology being one of those. And I think you see our business scale over a long period of time as Powell showed the results earlier. That doesn't mean that there aren't new technologies and investments that need to be made. And so, yes, there are certain things that technology is going to reduce the cost in, but then there's also places where you're investing new dollars that sort of blend out the average, and that's how we think about the margin and how we invest in the technology business.

But net-net, you know how we like numbers.

Yes. So I mean we talk a lot internally about that. We don't come out and say, here's our targets around these things, right? We talk about how do we utilize the technology more efficiently. Net-net, over a long period of time, you should see us be able to deploy technology that would make a process more efficient if that process is highly repeatable. And drive improvement in those areas. But with all the different businesses that you've heard from this morning and all the diversity that we have and the businesses that we're adding through, what Scott does, we always have a new influx coming in. So net-net, over a long period of time if the business was to stay flat, you should be able to use technology to make that more efficient. And we've seen that in many industries over a long period of time, the business isn't static. So it makes it really hard to say this is what you should expect.

I think an important point, too, there is, and Gray alluded to it is the increased cost of cybersecurity. So let's not kid ourselves, whether you work at a bank or a financial institution or a brokerage operation or whatever the case may be, there is an offset. So we're facing increasing costs there, too. So I think that the best way to interpret what -- how I would interpret what he said in a very basic way is, there will be offsets and there will be increases, but until and at which time we give you clear direction, figure is not changing.

Yes. Mark, if I can add to this because I think you get some of the other pieces. And Powell touched on it earlier, this is about how we think about profitable growth for the organization. We've got a tremendous amount of moving parts inside of a $4 billion organization. And everything is not static. That's the challenge. It would be perfect in some asset if it was, but it's not because it's a real business for all of us. And so we're driving a lot of different programs and technology to give us different efficiencies, but that also gives us the capital to reinvest in other areas inside of the business in which we have to, right? So it's hard to say, well, I'm just going to take 1 variable and hold it constant because you're going to have hundreds of other ones moving around all the other time. And what we're trying to do is say, when we put all that together and we can see all the moving parts, how do we get profitable growth over the long term, and that's our balance that we're trying to do. Okay?

Okay. I was hoping you could provide a sort of simple outline for which technologies are uniform across all of the Brown & Brown offices and which ones are not to maximize the benefits of decentralization?

As you think about those platforms that align to delivering business, we try to have the people that are delivering the business systems of engagement as close to the business as possible. And so that looks differently depending on what business you're in. So if you're in Mike Bruce's business and you're in the retail side, that may look like a standard operating platform across all of retail, whereas in Mike Bruce's business where he talked about Loma, Decus and BdB, that looks like 3 different operating platforms because they deliver 3 different solutions to our clients. So if you think about enterprise finance, enterprise collaboration, enterprise security, those types of things are operated at the top of the house. Those types of things are delivered consistently across the business and allow us to not only scale those things at cost but also allow us to meet all the requirements of being a publicly traded company and doing the right thing for our customers, as you start thinking about how we engage with our clients and how we sell and service business, those are delivered more at the local level, bringing them to the highest point that we can in all situations. So inside of Barrett's business, in traditional benefits, right, we have a platform that allows us to look at that similarly, even though there are different requirements in a large account than there is in a small account.

Can we do this just because we're going to be time on time. Can we -- guys, can you hold those and we're going to grab them on the back end. We just want to make sure we get through all the areas. So Charlie and Christian, we'll come back to those. Okay, Julie?

Hello, everyone. It's wonderful to be here with you. I'm Julie Turpin, and I have about 20-plus years in the insurance industry. I was formerly with a competitor, and then I started my own property casualty firm. So I understand how to bind insurance, how to place insurance and how to bill for it. And I happen to be the Chief People Officer here so that, I think, serves me exceptionally well. I joined Brown & Brown 11 years ago. And I was an operator at Brown & Brown. So I operated in a number of profit centers and had the ability to learn how to work with Scott and do acquisitions. I was responsible for a couple of acquisitions within one of our segments of business. So when Powell asked me in 2020, if I would be interested in taking on the Chief People Officer role, that was right before COVID, by the way. I thought that's really interesting. I'm an operator, right? I understand how to operate a business. I understand how to lead teammates. I'm not sure I understand the whole HR function, and we call it TR. And so I take sort of exception when someone says to me, "Oh, TR, you do HR, you do TR. And I say, I'm actually an operator that has the absolute pleasure of serving 16,000 teammates in our organization. And so that's how I view myself. And I think the advantage for us as an organization in that perspective is when we think about rolling out programs from a TR perspective, we think about it from the operator's viewpoint. And that's very different. If you think about that for a moment, I sat at the desk as the Profit Center Leader. So I know what it takes to implement something. I also know what they're struggling with or what they're balancing. So when we're asked by them to roll something out, we do it in a very different way, and we do it from the lens of the operator. That feels different, and we get a different form of compliance, if you will. So today, I have the absolute honor of talking with you about our teammates. I'm not sure how many investment -- Investor Days you've been to where TR gets the opportunity to talk about our teammates. And you've heard consistently here today and this morning about how important teammates are to our organization. So I want to start with sharing with you really our people strategy. And here, I'm going to highlight a couple of things that are very important to us as an organization. I'm not going to talk about all of this, but I will talk about just bringing our people strategy to life for you. So when we think about attracting teammates, we attract the best diverse talent that fits culturally. We know that not everyone is going to fit in our organization. We understand that not everyone is as disciplined. We understand that not everyone wants to work in a decentralized organization where you get to make decisions and the decisions you make you're ultimately responsible for. We understand that, that doesn't work for everyone, and we're okay with that. We're very slow to hire in terms of being deliberate about who we have joining the team. That matters to us tremendously. When we think about on-boarding, I imagine many of you can think about an on-boarding opportunity where it was really good. Some of you can probably think about one that wasn't so good. And on-boarding is a very important in organization. It gives you a sense of who we are, it gives you a sense of what matters to us. It gives you a sense about how much we care. And so we take on-boarding very seriously. Our senior leaders are involved. The local leaders are involved. We ask for feedback along the way. We do check-ins with our individuals, our new teammates who are joining us. They have the ability to build a development plan and partner with their leaders through a 1- to 2-year process. To us, that's critical. And then we come back around and ask them about how that experience was. And we have the ability to allow for decentralized on-boarding. So we have an enterprise program that we help the team make through, and then you can formalize it or you can structure it in a way that's in support of your own culture and your own local office culture and your own demographic culture. So for us, that's a really important piece. That's another piece of our decentralization that we hold very close, if you will. When we think about Engage and Develop, there's a number of programs here that are important to us. So leadership is really critical to us as an organization. And leadership doesn't come naturally. You just don't learn it over time. And so for us, we want to be really deliberate about bringing together and bringing to life programs that allow you to understand, number one, is leadership is something you want to get involved in. So we have a program for that. So it's a program where you identify, do you want to be a leader? Or do you want to continue to be an individual contributor. We think both are excellent, but we want you to have the opportunity to determine that. And so you can do that early on in your career. We also have programs that help you as you become a new leader. When you change from becoming a producer responsible for your book of business and maybe yourself and a small team, it's different when you become a Profit Center Leader, and you start becoming responsible for a number of teammates. We recognize the difference in that, and we want to make sure that we help support teammates in that particular journey. So we have a way to do that. And we also have a way when you get a little longer into your career, maybe you've been leading teams for 5 to 6 years, where we have another program for that, that really helps you step up your game there to teach you how to be more strategic. To teach you about vision, how to capture the hearts and minds of our teammates. So we offer these programs to really help develop our leaders throughout the organization. We also have programs for our producers and our sales team -- our service teammates. Those are just important to us as well. So once you decide really the direction you want to go, we've got a place to really help support you. We also have a lot of training and development opportunities on demand for our teammates. So teammates have the opportunity to create their program, but they also have on-demand opportunities. We also offer internship programs that are really an opportunity to invite younger teammates into the organization to truly understand what insurance is all about and what that looks like from an opportunity to grow and develop and build a career. When we think about Perform and Progress, we have a couple of things here that I think really make us very different from a culture perspective. Number one, we have a set of competencies. So how we think about how you perform at Brown & Brown? How we connect you to the business, how we connect your growth and development? We have a common language for that. So how you show up in the organization has a common language so that we can speak to that. We can measure that. It flows through our engagement programs. It flows through our performance management. We expect our leaders to provide feedback to our teammates, and they can do that through our set of competencies that creates a consistency and an opportunity to understand how you can grow in our organization. The other thing we do there is we give teammates an opportunity to connect with each other. To connect across the organization, to build their networks, to understand why collaboration is so important, to understand other businesses, to understand other opportunities within our organization. Those are elements that are deeply important to us. And we really want our teammates to understand that there are a number of opportunities across the organization. When I started, we were about 8,000 teammates, and now we're 16,000. That means there's a number of roles that weren't available 8, 9, 12 years ago that are available now. And so continuing to help our teammates understand that as we grow as an organization, that creates opportunity for our teammates as well. And those opportunities create growth, they create the opportunity for retention. They create the opportunities for thinking differently. And so we want our teammates to really understand that you can build a long-term career here. We talked about earlier about the importance of long-term investments. We feel that way with our teammates, too. And we want to make sure that they have opportunities to experience different things, learning and place opportunities, some career pathing, succession planning. Those are all pieces to us from a performance perspective that are deeply important. And when we think about retention, which is critical to us, we think about listening to our teammates, we do surveys every year. And what we do with those surveys is we read all of those comments. We categorize them and we build a plan of action so that we're certain to address our teammates concerns and that we develop programs to help them to respond to those, to show them that we're listening, to show them that their feedback matters. The other pieces here that we've developed is really our TRGs, our teammate resource groups. So in other organizations, they're called employee resource groups, but here we call them TRGs. And those TRGs create a sense of community. Teammates come together either want to learn about each other or they want to learn about other ways in the organization to connect. We also do -- when we do our BE Our Best survey, we actually ask our leaders in the local offices to build a development plan themselves to sit with their teams, to share those results and to come up with a solution on how to implement one thing in their office that will improve their culture. That will improve the teammate experience. We think that capturing the hearts and minds of our teammates is one of the most important things that we do as leaders. We want our teammates to stay. We want them to recognize how valued they are and we want them to recognize that the opportunities they have across our community. Next, I want to share with you our leaders talked a lot today about the power of our culture and how connected we are and how collaborative we are. And I feel like some of these numbers really demonstrate that. When you look at we've got 16,000 teammates, Powell mentioned this, Scott mentioned it, we have 60% of our teammates, our shareholders. That creates a different mindset in the organization. How you make decisions is different if you look at that as your money, how you lead is different when you think that the investment you're making matters? Our teammates think about our business, they care, they ask the questions. Powell talked about when he comes in or when teammates ask about our ESPP plan, that's meaningful. Teammates really care about that. They want to know how they can participate. They want to know how we're doing. They make decisions based on that. We also have a culture of caring. We truly believe that teammates want to work for a company that demonstrates they care. We care a lot. We have 90% of our offices really support local nonprofits. We also have a disaster relief fund where we help provide support to our teammates and others across the communities who are in need of that help. We fund that ourselves. I fund that personally. We have other teammates who fund that. We fund that across the organization. So we can take pride in how we share those and distribute those funds to teammates and others in the community. 93% of our teammates say we're a great place to work. That's a tremendous recognition. We believe that, that says a lot in terms of how our teammates feel about being here about our leadership, about how much they trust our organization, about their intention to stay, about wanting to be here and about growing in our organization. You can see our workplace awards there. We've got a number of them. But I want to just wrap up and spending some time on our teammate resource groups. These are resource groups that we've put together over the past couple of years. They are sponsored by our senior leadership team, but their teammate run. So our teammates get together, they create a sense of community. They work together. They share stories together. They celebrate on a monthly basis, they get out into the communities. They create educational programs. They help us recruit talent that thinks about things differently. So we spend time with these teams. We also have them operate like one of our businesses. We have an accountability process for them. So on a quarterly basis, they come back and share really how they've spent their time, how they're meeting their goals and how they spend their budget. It's really important for us to really hold them in the same sort of standard, if you will, same level of discipline as we hold our businesses. So with that, I will open it up to some questions.

Mike Zaremski from BMO. Curious if you have -- Brown & Brown has a teammate hiring goals annually. And if there are other incentives for the offices to meet those goals?

Well, the way I'd answer that is we're always in the market to onboard talent. I think Powell mentioned that this morning, even if we don't have quite the right seat, we're going to put them on the team because that's really critical for us. So I think for us, it's we're always recruiting. We're always wanting to bring on teammates and then we'll find the roles for them. And we'll put them in roles that they can demonstrate their talent, and then we can ship them. So we're always in the recruiting business.

So are there specific like 5% to 7% and 7% to 10% in terms of recruiting?

No. Mike, I think what Julie tried to do with all of the leaders is trying to work with them to actually put together a strategic plan for their teammates, right? So some people might need to hire 10, some might need to hire 3, some might need to hire 30. That's all about having a specific plan tied to that business and then making sure that you're hiring the right talent to feed into it, right? Because all of our businesses are at different growth cycles inside of them. And that's really what Julie's tried to kind of implement across all of the teams. We don't have everything all perfectly figured out, but that's really what every business has a people plan inside of it.

Greg Peters from Raymond James. Julie, maybe you could step back because I know it was mentioned in -- maybe Powell mentioned it earlier, but Brown & Brown University is a pretty unique creature inside the industry, and there's some cost sharing going on between bringing in new talent. So maybe you could step back and talk to us about Brown & Brown University, what it does, how it works out with inside the organization, et cetera.

Yes. Thank you for the question. So the way it works is that we've got some schools of service in there. So we've got a producer school. We've got a service school. We've got a finance school, and we've got a couple of others in there. So teammates are in that program for about 2 years, I would say. And that they work through that program, they're producers, I'll just use the example of producers, and they learn the business from a technical perspective. So they spend the time in there, they work directly with the leaders in that BBU and they actually help guide them. They help teach them how to look at the risk, they teach them how to sell it. They teach them how to consult, they teach them every element of the business, and then they graduate from there. I don't know if you guys would add anything else to that.

I'll add something. It's also, as Barrett said, Greg, it's not just for the entry-level person. We are starting to stack on top of it. So it's in the sales roles, which we're all in sales, but I'm talking about producer broker roles, it's technical and sales training. But you could be 3, 5, 7, 10 years in and then come back to, let's say, advanced training, and we continue to build out those capabilities. But if you're in service or you're in marketing, then there's specific things geared towards service and marketing and how to handle new business and things like that. But we're really pleased with the way the Brown & Brown University has evolved and will continue to evolve like anything else.

I was just going to add that we have leadership programs wrapped around that as well. So we've got one leadership program where we have the opportunity to teach our teammate, number one, we collect feedback about their performance. We do a 360 and then we help them build their strategic plan, their vision and help them really understand how to sort of move their, particularly, a profit center forward. This is after they're in the role for about 5 or 6 years. And that really gives them the ability to see that business slightly differently strategically move it forward.

Okay. Before we get into the financial piece, like for all of you to envision something for me. Let reenvision a little small boat out in the middle of the ocean, okay? And what happens when storms come up, that boat rocks really hard, okay? Now I want you to think about a really large barge, right, real wide in nature. It's in the same seas. Does it rock as much? It sure doesn't. So what did you hear this morning from Powell? What did you hear from Steve, Mike, Chris, Barrett and all the other leaders, is we have -- with purpose, we have built our business to be a really large barge. Why? We want stability inside of it. You've heard us talk about diversification and the power of diversification in every one of our segments. Why? It's because sometimes things are going up really well. And then there's other times they're going down. Not all businesses perform the same way. It sure would be great if they did. The problem is if they all perform really well at the same time, high likelihood they're all going to probably perform really bad at sometimes, okay? That's not what we want inside of our organization, is we want stability and consistency in how we deliver our financial results. And hopefully, what you've heard today and what I'll go through today is really the culmination of what comes out, okay? Because we don't get our financial performance if we don't get all of our teammates to be able to pull on the ore to push the boat forward all the time. We don't get it to work if technology doesn't function for us each and every day. We don't get it if we don't have all of our carrier partners. All of that comes together to then deliver the financial performance that we do each in every year. We've been able to grow our organization, total revenues double digit. We did it last year. We did it 5 years ago. We also did it 10 years on an average. And that's really the combination of leveraging the acquisition strategy that Scott talked about earlier. So that's fueled inside of there. Then we couple that with the organic growth of our organization. And we believe that is one of the cores to how we grow this company is organic. We've got to link those 2 together. Right? We can grow the heck out of the organization if we want to from an acquisition standpoint. We won't create the same amount of shareholder value if we don't fuel the organic growth inside of there. So when you look at these numbers, we outpace the S&P 500, and we outpace all the other large public brokers, it doesn't matter if it was last year, if it's this year, if it's on the 5-year average or 10-year average. We always end up outpacing everybody, maybe not on an individual quarter because things go up and down, back and forth. But you heard from Powell earlier, we don't get overly worked up about the 90-day sprint. What we're thinking about is how do we grow our organization, how do we grow shareholder value over a 12, 24, 36, 54-month period. So we're very, very pleased with what we're able to do organically as an organization. If you look back to our organic, we're almost always right at the top. Maybe not #1, but we're always right there at the top. Now it might not be that retail is all the way at the top or the programs at the top, it might be the wholesale at the top. It's the culmination of that combination of our business is what drives our organic each and every year. So if we can grow the top line, the question is, what do we do with our margins? Well, over the last 10 years, we've been able to average margins in that kind of that 32% range. So we've heard from a lot of people said, yes, as Brown & Brown gets bigger, what's going to happen? Well, your margins are going to go down like everybody else because you're going to revert to the mean. And we would say we build an organization that has the ballast inside of it the discipline and the rigor to deliver consistently strong industry-leading margins, right? So we've seen some progress in the others, but think about our organization, in the last 10 years, we've doubled it. The margins are still in the same range. Now we've made some investments during that time period back to Gray's earlier comment about technology. So we, with purpose, took the margins down during the 2017, '18 and '19 period. But we knew that we would get the returns back to markets a little bit to your question. We will do that inside the business. We've had very strong margin expansion over the last 3 years, and we're having a great 2023. We think all that sounds really good. But the question is, how much cash can you generate as an organization? And we're really proud of the fact that about $0.25 of every dollar of revenue that we generate as an organization is available cash for us to invest back into the organization. That can be in the acquisitions, that can be in dividends, share repurchases or capital expenditures. But look at the gap that we've had over time, right? We run anywhere from 35% to 70% better than the average of all the other public peers. It's not by mishap that we're able to do that, right? It's because we have a really disciplined organization. We have a decentralized sales and service organization. We can see everything in there. We have an ownership culture. We spend the money like it's our own. Because 21%, 22% of it is our money. So we're not going to do anything unusual. We're not going to waste money inside the organization, we can do that. We focus on how we collect our cash. We talk about it all the time. It's really important. We want to collect our money as quickly as possible and pay it out at the last possible time that we can as an organization. There's nobody in the industry. Nobody that has been able to consistently deliver that cash conversion over decades. We could back this up over 20 years and 30 years, and it's actually going to look very, very similar. So as you think about Brown & Brown and how we've been able to grow the organization, look at the consistency that we've been able to deliver. So what does that mean in cash flow from operations? So earlier, I talked about the fact of we've been able to grow our revenues double digit, a little over 12% on the 10-year average. What have we been able to do with cash flow from operations, while we grew it faster. So that's over 13% on a compounded basis. Last year, we delivered over $880 million. This year, we're on the trajectory to probably deliver somewhere around $1 billion of cash flow from operations. Should be another outstanding year for the organization. Then when we look at our earnings per share. So this is on an adjusted basis. So we account for foreign exchange inside of here. Any unusual items in -- nonrecurring in nature that's out there, integration costs, trying to get it fairly close on apples-to-apples. Well, we've grown our earnings per share also almost 14% on a compounded basis. So even with all the acquisitions that we do and the amortization of the intangibles, we've also been able to grow the bottom line even faster than revenues, right? We can do that because we're very strategic about our tax footprint, how we think about where we operate as an organization and try and optimize that the best that we can. So let's shift gears a little bit and talk about the capital we generate and how do we deploy it? Well, over the last 10 years, we've generated almost $6 billion of cash flow from operations. We are a net deployer of debt of capital, excuse me, right, which means we're also a net issuer of debt. So we've deployed almost $8 billion of cash over the last 10 years. Most of that has went to fuel the acquisition strategy that we talked about earlier. We've also bought back shares over time. Some of those opportunistic when our share price, we believe, is below intrinsic. We will buy some of those back, and we'll also buy back at times in order to manage the creep. With 29 years of dividend increases. There's not many companies that have increase their dividends for 29 years in a row. It's only 70 basis points of return, but we're really proud of the fact that we're 29 years, and we've been recognized as a dividend aristocrat. And then share repurchases and CapEx, 2 items inside there. If you look at how we think about our capital deployment, it looks really similar to the acquisition slide earlier, right? When we have time periods where we have opportunities to have great companies join the Brown & Brown team, you're going to see we're going to deploy capital, okay? And then on those other years, we'll have excess capital, we'll build that up and then we'll redeploy that that's out there. We think that the most efficient use of our capital is to pay in cash. That is the best way for us to get returns. We do not want to use a tremendous amount of stock, it's way, way too expensive. Let's talk about our financial policy, liquidity profile. So a few things on here. As an organization, we're generally pretty conservative in how we think about our balance sheet. Why? Because we own over 20% of this organization. We never want to be in a position where we're highly levered, the economy takes some sort of a blip and a big chunk of our cash flow gets consumed through higher interest, right? And we're not able to invest back into our business. Some people have asked us what's been the impact on your cash flow of higher interest rates? We would tell you, it's about 3%. We have done an outstanding job of managing the combination of fixed and floating to make sure that we can dip into the market at the right time and take advantage of it and has been great over the last 7 to 8 years to have a portion of our debt floating and have a portion of it fixed. And I'll talk about that in a little bit more. From a leverage standpoint, we have a pretty wide range on this. So 0 to 2.5 on a net basis and 0 to 3 on a gross basis. The reason why we have that is we don't set a lower tier. If there's times where we'll drop down below 1.5 on a net basis, which we have over time. We will not go reissue stock -- debt, just to put ourselves back in the range. Why would we do that if we're trying to drive shareholder value? The same thing applies in your house. Why would you go take out a line of credit and then park the money right back in the bank and pay the spread on it. We have as much access to capital as we need as an organization. So we're a debt minimalization model. We'll go get it when we need it. Otherwise, we're going to pay it down over time. We finished last year with over $880 million of cash that I mentioned, over $650 million of Brown & Brown cash. And the important thing here is we have a revolver of $800 million as well as we have access on our bank facilities to increase that by another $900 million. We've got plenty of flexibility. If we find the right companies between the cash that we generate, so think about the $1 million -- or the $1 billion I talked about earlier, and what that will look like in the future and the access here, we can lean in for great companies at the right time. So what have we been able to do over the last 10 years? We have a proven track record that when there's acquisition opportunities, we're going to take our debt up a little bit. Now for us, we look at 3, in like, oh, that's pretty aggressive for us. Others might say, well, that's not very aggressive at all, right? So if you go into the private equity world, they're going to be running at 6%, 7%, 8% of some sort of an adjusted number, so they feel good about it that's out there. That's not the real number, right? We'd like to be able to come back down. So if you look at that in 2014, those are the acquisitions we talked about earlier. We did it in 2018, 2020 and 2021. We have a track record. We go up and we delever the organization right on the back end. Through the combination of growth of the business, so the EBITDA I mentioned earlier, and our natural maturities, we will delever somewhere around a quarter to half of a turn each year. So think about the capital capacity that creates for an organization of our size. So as we come back down, it put us in a position last year that we could deploy $2.5 billion of capital. Issue $2 billion of new debt, and we took our leverage up to 3x on a gross basis. We're on a trajectory to come back down by -- probably by the end of this year, we'll be somewhere in a 2.7 to 2.9 on a gross basis. We're just repeating this again over time. It puts us in a great position as an organization so that we can capitalize on opportunities to grow our business. To create shareholder value if we don't have our organization overly levered at different times. On the bottom is our debt maturity ladder. You see the blue bars there represent our bank facility, so that's all the floating rate debt. And all the red is all of our public debt that we've placed. Strategically, we have spent a lot of time trying to think about building a ladder that's very level in nature. We did not want to have any year where there was a tremendous amount of debt that would come up for maturity in any one period. And you can see it's pretty level in nature. We did that for a few reasons. We never want to get ourselves in a position that if the debt markets were not receptive, that we still had to go. We would never want to put ourselves in that type of position. So if you look in 2020 -- '23, we have about $250 million of debt that was coming up for maturity this year. At the end of June, we already paid off about $150 million of that. We will more than likely take out the remainder of that in the back end of this year. That still gives us the capacity to pay for the Kentro acquisition, that was mentioned earlier that we'll be closing in the fourth quarter as well as closing other transactions that are out there. So then what are we going to do when it gets to 2024, but we have a lot of options. So if the markets are receptive, well, we may just take that $500 million and we'll stretch it back out another 10 years or we'll look at the 30-year curve. If the market doesn't look good at that stage, well, we've got other options. We could just pay off half of it if we wanted to. And we'll put the other half on our revolver, and we'll just wait it out for a little bit for the rates to go back down. Or if we wanted to, we'll just stroke a check and we'll take the whole thing out. So we got plenty of options as an organization to manage our debt footprint and the overall capacity inside of the organization. So we feel really good where we are on that front. Well, what does all of this mean? Hopefully, what you heard today is that we've built an organization, highly diversified, great talent, we've got a lot of depth and out of that comes industry-leading financial results. We grow the top line generally double-digit. If you just look at it over time, no guarantees, we can do that again. We have industry-leading margins. They continue to remain up there in that -- kind of that 31% to 32% range. We have said publicly anywhere 31% to 35% on our EBITDA margins. We feel really good in that range. It can move up and down based upon the companies that we acquire and their margin profile, how we're growing organically, and any changes in our contingent commissions. We think anywhere in that range, we're investing the right amount inside of the business. Some people have asked us, well, why don't you run it up to 40%. Well, we can run it up to 40%. If you're a long-term shareholder, that would be a terrible, terrible outcome. That would mean we're not investing enough back into the organization through innovation, through talent, through technology. So we feel really good with where we are. Cash flow conversion was down a little bit last year. It's coming back up as we continue to pay down our debt, we'll get back to our normal kind of 25% conversion ratio that's out there. Feel great about our free cash flow growth that we've grown that also double digit over the last 5-year average in 10-year. And then with what we've done on diluted net income per share. We feel great about our organization. We feel great about our capabilities, about the talent that we have and the outlook that we have going into 2024. And with that, I'm going to turn it over to Powell for closing comments.

Thanks, Andy. I appreciate it. First, I'd like to say thank you to everybody for coming today or listening in on web land. We appreciate you coming to beautiful Daytona Beach. And I hope that you've heard some things that maybe you didn't know about our organization that sheds a little light on why we're so excited about the future and why the business is performing the way it's performing. I'd like to just make a couple of comments not on this slide, but kind of things that you heard today that I think are really important. Number one, you heard that we are different, and one of those things is based upon the fact that we have an ownership culture. That ownership culture is based on accountability and responsibility also driven by customer-centric obsession by our teammates, but it all starts with teammates. As an investor or an analyst, as you know, the publicly traded peer group, the insider ownership is roughly or generally less than 2%. So if you invest in Brown & Brown today or in the future, you're investing alongside of us, because collectively, we are the largest shareholder at 21%. We believe that in and of itself presents a different investment profile and a different attraction to certain long-term investors. We have a fundamental core philosophy, which is based on wealth creation for all teammates. Let me please say that again, our employee stock purchase plan or save as you earn plan, fundamentally is directed to enable all teammates to create wealth. So you can be the director of first impressions, a very successful producer, marketer or service teammate or a leader or a senior leader in our organization, and you get to participate in those plans. There are other plans that also allow people to gain ownership, meaning equity ownership through grants across the organization. One of the things that we talk about that I think really summarizes what we're all about is if you work at Brown & Brown, you've heard me say this a lots of times. But the most important thing for you as a teammate is your health and your family. That's your health and your family. Second is Brown & Brown. And in Brown & Brown, we define health in 4 ways. We define it physically, mentally, spiritually and financially. Physically, I ride a bicycle, Barrett rides a bicycle. I'm going to talk about that in a moment. But you don't have to ride a bicycle, but the question is, what is it that you do to take care yourself? Are you a runner? Are you swimmer? Do you play pickleball? do you play paddle tennis? Do you swim? I don't care what it is, what do you do to take care of yourself. I'm going to come back to mental health or brain health, as we call it. Spiritual health, far be it from us to say to anybody what do you believe in. But what we do say is we know there are studies out there that say people with purpose actually have more contentment, which actually leads to happiness. Financial well-being or health, that's why we provide 401(k) plans, employee stock purchase plans, other savings mechanisms and actually financial advice to our teammates so they can build wealth over a long period of time. So I want to come back to brain health, and we have implemented in our organization, certain tools and resources for teammates to use to ensure that they and their family members are healthy because if you're not healthy, you can't take care of the ones you love, your family and your friends and therefore, you can't be as good of a teammate. So we want people to feel good. And if you don't, then we ask them to talk to somebody. That could be somebody internally, that could be a coach, that could be a professional, that could be a leader or a senior leader in the organization. And if they don't feel talking to any of those people, I give my phone number out and people call me, and we want to get them to the help that they need. And so I'd like to ask each of you a personal ask and something to consider. I have 2 brothers. Barrett works here in the organization and another brother Kellim, who is not in the organization but he's a huge fan of Brown & Brown, obviously. And we did a ride last month in France called the Haute Route. The Haute Route is allegedly the hardest amateur bike race in the world. It was a 7-day adventure that started in Megève, France, which is about 1.5 hours outside of Geneva. And we rode down the spine of the French Alps to Nice, that's 470 miles over 7 days. That's not really the challenge. The challenge is the 66,000 feet of vertical climbing that we did in aggregate. So why did we do that? Because we're cyclists and we love to ride and be in the outside. A lot of people might say, you got to be wired differently to do that. And the answer is, you do. It's a different kind of deal. It's not for many people, 404 started and only 298 finished. But the answer is we also align that with something called on a goal -- on shifting gears on brain health. And so we actually set out on a goal to raise $6 million for nonprofit organizations in the United States and England and Ireland. $4 million is the goal in the United States, $2 million in England and Ireland, and that money will be given by advisory groups in both areas to nonprofits that sit and operate in 3 areas. One is research; two, is education and prevention; and 3 is treatment. And so what I would ask of each of you is if you would consider going to the website, which is shiftinggears.world. And for those of you that are large investors out there, I would ask you to consider to give till it hurts because we would really appreciate it. Because you would say, well, why are you doing this? And the answer is, in 2019, I stood in front of 2,000 teammates for the sales convention. And I said in the prior 12 months, we had 3 teammates to take their own lives. And I knew 2 of them. And that's 3 too many. So we were talking about mental health before or brain health before the pandemic. And then we started talking about it through the pandemic. And for anybody that has any children in this room, you know that there's an epidemic not only in adolescent mental health, but just in mental health in America today. And so it's a little bit bigger deal and it might not have affected you directly, but it either will or has affected someone close to you. You may not know that. So we're about $4 million into our adventure. So we need about $2 million more. And I think that we're very capable of raising that money, but we would sure love for you to consider it. That's the -- we talk about wealth creation, but we talk about health and family first and then Brown & Brown. We talk about the best athlete routine, and you saw it today. So everybody that's up here on this stage, I feel honored to work with and for. But I want to just highlight a couple of people that they may not have said what will define them a little more. Steve Boyd has been in the insurance business since 1995, Steve Boyd. He joined Arrowhead as the Head of Technology. And he did that for a couple of years, and then he was promoted into underwriting. And he learned to become an underwriter and then became the COO and ran about $250 million of that business. Our business is based all on respect. Respect is earned. It is not granted. Steve Boyd was and continues to be an extremely respected leader in our company. And we had a problem before our friend Gray Nester joined with our technology, and I asked him to step out of a $250 million operating role to become our CIO. I said, I need 3 years of your life. He said, "I want to be an operator." I said, I do, too. But I need you to be -- help us get this thing going in the right direction. And he said, "Put me in, coach." And so he did it for, I believe, it was 13 months. And then this opportunity came up, and we put them back in the game. And so he runs a $500 million business today. So he went from national programs to IT to wholesale in his journey at Brown & Brown. And I would tell you he's better at leading wholesale because he worked at national programs and in IT. Let's talk about Julie. So Julie, what she didn't say is when she came into the business, the business was, what, $25 million of revenue. And she grew the business. She ran in the Northeast to $40 million organically and by acquisition and then took on another $40 million. So she was running a $80 million of business -- 2 businesses, $80 million of revenue, both in that Services segment, the advocacy businesses. And I went and sat down and talked to her and I said, "I don't want you to give me an answer today." but I knew she was good at recruiting and developing people. I knew she had something special about and a passion around that. And what we said several of us that is valuable as she is, as an operator, we thought she'd be more valuable touching at the time we had fewer people, but all of our teammates across the organization. So Julie said it, she's an operator first. Scott Penny, what he didn't tell you is he was a corner back at Vanderbilt in college. He and I happen to be the same age. He went at Vanderbilt from 1985 to 1989. And so he had some wheels back then. And so -- but you got to be tough to play in the SEC. And actually, at Vanderbilt, you get a good education. And so -- but remember, Scott Penny, he's an operator. And what he didn't say is, oh, by the way, not only is the Chief Acquisitions Officer, but he works with our automotive business, Brown & Brown Dealer Services. So he's never too far away from being a -- he's an operator now. And then Gray. And when I think of Gray, I think of business partner, he happens to be -- he does IT, but I don't think of him as the IT guy. And what I want you to know is this, I don't know about any other public companies, and I'm not really worried about how they do it. But what I would tell you is he and I have a personal and professional relationship as I do with everybody that I work directly with. But we meet every week. So my point is, I'm here to help him be better and be successful, and he's helping me be better and help lead the organization. So the point is, technology is like never more than a step away from my agenda. And so part of that is because we got the right guy in the spot. And oh, by the way, I just wanted to let you know that he's already generated several hundred thousand dollars of revenue this year because he asked people we do business with and people knows if we can work on their insurance. And if we don't handle your insurance yet, we'd like to talk to you about your insurance, too. You've heard about our capability to offer differentiated solutions and maybe you understand, hopefully a little bit more how broad that capability is. One of the things that we talk a lot about in our organization when we create businesses or a program or a capability is, 3 things. Is it lasting? Is it meaningful? And is it relevant? So we don't like flashes in the pan. That's not the way we think about it. If it's going to grow real rapidly for 2 or 3 years and then fizzle out, we'd rather grow something that's got a sustainable growth curve and adds value over a long period of time. In our acquisitions process, Scott talked a lot about the kind of accountability and responsibility, and I call it the senior leader sponsorship model. Let me tell you how that really works. The answer is, if a senior leader is interested in doing a transaction, she or he has to be the sponsor. And at the end of the process, before we announce a deal or sign anything, yours truly will ask that individual, are you willing to bet your backside? And if the answer to that is no, we're not doing the deal. And if the answer is no, unless something has come to bear in the last 24, 48 hours, I ask why have we been wasting this time on this deal, which rarely happens. But Scott said some of the best deals you ever do actually are the deals you didn't do. And so we've been down into the opportunity where they want to do a deal with us, and we actually get into due diligence, and we find something that changes it irreparably and we back away. Now there are other buyers out there of short-term nature that actually they will give someone an offer in 30 minutes or less. And then when they get into due diligence, it's actually a license to renegotiate the contract on them. So we're going to retrade. And then they jam them. We don't retrade. In our acquisitions thing, whether you're talking about Scott Penny, Brown & Brown, anybody else, Vaughn Stoll, anybody on the team. There's 3 things that are real clear about our team and our style, we do what we say and we say what we do. We pay with cash. And when we decide to get on it or do it, we get it up and go, okay? Now not everybody's got to like all that, but the answer is that is categorically the case. And so we aren't trying just to accumulate businesses. That's not the way we're doing it. We're thinking about capabilities and talented teammates who could work with us for extended periods of time and bring solutions to our customers. I would actually be remiss if I didn't say something about our carrier partners. Chris talked about this. Barrett and Steve alluded to it, Andy talks about it. We all talk about it, but we actually view it as a partnership with our carrier partners. We understand that they have to make money over a long period of time, and that will enable us to be compensated fairly over a long period of time. But we like to think that they would like to do business with us because of the way we trade and the long-term nature of our organization, we are a survivor, we are forever. A lot of the firms that you hear by name are not forever. That doesn't mean you don't want to trade with them. It just means how much time and energy and money do you want to invest in trying to develop a relationship when you know that in 3 to 5 years, they're going to be sold to somebody else. And I asked the final question is, do you fundamentally like the core values of the company? And do you think they're insurance people. If they're insurance people, they may not be exactly the way you do insurance, but that's different than if they're just financial people or something else. The final thing, and it always comes back to people is this. Julie talked a lot about our talent and our teammates. And we believe, as I started with, the most important thing at Brown & Brown is our teammates. And so ultimately, how we recruit -- how we identify, recruit, reward, develop, launch and ultimately, scale our talent is very important. And so we ask a great deal of our teammates. I believe that we work really hard and we play hard, and that's the way we like it. And we don't think of ourselves as a large organization. We think of ourselves as a bunch of very highly competitive teams that operate under this umbrella called Brown & Brown, which creates a nimble fast-moving organization. So our -- my parting thought before we open up to questions is this. Everybody in every organization has a lid, and that is as far up as that individual or individuals are capable of leading teams. And so when we talk about culture, we talk about doing the right thing by the customer, and we talk about working with carrier partners, not only domestically but globally. We're actually looking at the people on our team and the people we trade with in terms of their capability to be able to think beyond their current role. How do they add additional value to our organization and our customers or to Brown & Brown through trading relationship. So you got to see Mike Bruce for the first time as the leader of Brown & Brown of Europe. And the answer is, I still remember the first day we met, that November morning. And I couldn't believe it because at the end of the conversation, I would say something and he was like finishing my sentence and vice versa. And so the thing is, is that just doesn't happen randomly, I don't think. That's not -- I think things happen for a reason, and you got to be out there meeting the people, and we do all that stuff. But the answer is, remember, he didn't know he was going to be running a $460 million business 2 years ago, but he was running a damn good business already, and we're growing a lot organically and through acquisition. We just accelerated it. So I would like to just say thank you for, one, your interest, trust and investments in our organization. Number two, I'd like to actually say if I were in your shoes, I think that I would like the fact that we have an ownership culture and the 21% of our company is owned by teammates because we get to sit aside each other or next to each other on the investment horizon, and we're not doing something short term. And finally, and I know all of you have thought about this, but the average tenure of public company CEO in the United States is, I believe, 5 years. Isn't that right, Hyatt?

I think that's right.

Okay. So fortunately, knock on wood, I've done it for a little longer than that. And I'm not trying to make -- hit some thing in 5 years or less. So God-willing and health permitting. I'm only 55 years old. I'm going to do this a long time. So we can get a lot done. And a lot of the folks in the room right here probably retired, and I won't be retired. Now, Hyatt is only 86 and he said he's going to live to 100. So he got a lot done. He brought it the first and the toughest part. He brought it to $1 billion. So the question ultimately is how far will we carry it. And I will tell you this, the management and leadership team that you saw today is very capable of doubling or more the company that you know today as Brown & Brown. Thank you very much for your time. We'll take questions now on anything we've said or more importantly, anything that we haven't said.

Questions. We got Meyer, then [ Christian ].

So Meyer Shields KBW. Two questions from the early slides. The first is you talked about the ambition to be the leading broker. Do you define it by size?

No. We'd like to be bigger and better. But no, that doesn't mean that if you're -- we're not -- we don't want you to walk out and say, we're chasing Marsh or Aon -- that's not the way we think about it. But we believe that we will get bigger and better as we continue to grow and add capabilities.

Okay. That's helpful. Second, you've got the customer segment slide that shows roughly equivalent shares for small to medium -- middle market, large accounts. Is that to scale for revenue...

Not to scale. What I would say is the biggest segment is that the red one in the top, which is middle market. We don't talk about the breakout of exactly how much as a percentage. But I would rather have you think about this. We have historically said, and this is a retail statement. We have said in retail, is -- that's not just a retail slide, though, that we have, let's say, $60 million of revenue under $2,500.

$60 million under $2,500 in retail.

We've said that before. So I'm not stating a new fact. We're not going to give you any more data, but look at small commercial and wholesale as an example, under a couple of thousand of commission or in programs or whatever the case may be. It's very interesting because everybody goes back to Barrett or Andy or Scott's comments about how do you define segments. You know what I mean. And what we would say is this, Meyer, I don't think there's one common industry segment. But the way I'd like you to think about it is smaller accounts are maybe 50 or let's say, 50 or fewer teammates and less, all right? They're more smaller -- some of them are more main street type businesses. Middle market could be anything from 50 to 2,500 lives and in many cases, large accounts might be 2,500 and up, but you could have a 1,000 life group that acts and looks like a large account and buys insurance like a large account with very large deductibles or different kinds of -- so there's not a hard and fast rule there.

We got [ Christian ] over here.

[indiscernible] of Wells Fargo. One of your competitors yesterday mentioned that they are not seeing any signs of an economic slowdown at this point in time. And they're actually expecting brokerage organic to be similar in 2024 as 2023? Any similar color you could provide?

Do you believe that? No, I'm just asking you, do you believe that what they just said about the economy? I'm asking you personally.

Yes. From what I see, I feel like it's starting to emerge like around now. So maybe it hasn't fully shown up, but I think it is starting to show in pockets.

It's starting to slow down in pockets. Okay, so I just wanted to know, you live in Boston, right?

New York.

New York, sorry. Okay. So the short answer is, if you go out in the towns that we work in and go to dinner in a restaurant, every single restaurant seems to be full, all right? So we haven't seen that. But you want to talk to customers and you start to see what is the inventory in -- at a contractor 12 months out if they'll tell you. 18 months out. How do people think, which I think is the most important thing about investing in their business. . So I believe, and it's very customer specific, and I'm not talking about just industries, I'm talking to customers. Some people look at it very opportunistically today and they're full steam ahead. They're going gang busters. And then there's other people saying, look, I need to put $10 million in our plant and equipment. And I think we're going to hold tight for the next year or 2 because interest rates are up, and I don't know if the economy is going to slow down. So we don't like to make broad generalizations like never or always. So we don't like to make broad generalizations about the economy that say everything is going to be fine 12 months from now. if we had that kind of foresight or insight, it would be -- that would be very interesting, but we're not going to speculate on that. We feel great about our business though, and our capability to continue to grow. Remember, our business is driven primarily by exposure unit growth. So we are a proxy for the true middle market economy.

And now for my second question, would you guys consider switching to cash EPS similar like the majority of your peers?

Again, I think it's interesting that we talk about this. Because, the short answer is the last time I checked, you could do the quick conversion. I know you can, but I think everybody -- so I kind of get a kick out of it. And I don't really need to tell you the truth. The short answer is, I don't know, okay? And Andy is going to say no, which is fine. But let me tell you the way I think about it, it goes back to the first point that I said, which was cash conversion and free cash from operations. So if I'm in your shoes, you asked the question, so I'll tell you. Really, if you're -- if we -- the way we think about it, it's really simple. We're converting $0.24 to $0.25 of every dollar and everybody else is converting $0.12. Not bad. They got something figured out. And two, we have $1 billion of free cash this year, Andy said. I'm not going to -- I'm not speculating, I'm going to quote Andy. And the short answer is that's going to grow next year. So quite honestly, I think I just look at cash anyway because in our organization, we don't spend premium. We don't -- that doesn't do anything for us. We trade with carrier partners who actually finance our inventory in premium dollars. We actually invest in commissions and fees. So no. But I think we see the cash pretty well and Andy can help you if you'd like to see how the cash works better. And you guys do the quick -- and maybe you would find that maybe your valuation metric is different. Maybe you think we're undervalued. Never can tell.

Can I have a little -- I'm going to add a little color.

You want to jump in on that, do you? Not an opportunity.

I'm going to jump in on this one. So if you saw the earlier slides, there were a couple of things inside of those when it looked at the margins and cash flow conversion. So one of the phenomenons going on in this space today, adjustments. Everybody likes to adjust everything. And so we say, if you adjust all the bad news out, of course, it looks good. If you look to Brown & Brown, the numbers that we report for GAAP are really, really close to any adjustments. We don't make much. The only real adjustments that we make are for change in acquisition earn-outs. If you saw on the previous slides that I put up there, the others have all their margins going up. Have you seen their cash flow conversion go up though? No. Because you can adjust around with your earnings per share and you can make it cash this and you can adjust your margins and all the other stuff. But you can't create cash unless you can grow the business, right? So we don't see that there's a lot of value in there because just take cash flow from operation is pretty simple, just run that thing out. You can do that off of anybody that will tell you how organizations grow. So the other is just moving it around back and forth. And the cash that everyone talks about today, that's an adjusted number. It's not apples to apples.

You can see we don't feel very strongly about it either, right? All right...

We're probably down to...

We can do one more, right?

Yes, we'll do one more.

What else? Who else has got a question? There's a question right over here.

[ Moss Bolan ] from [indiscernible] Investments. I was just curious like to what extent maybe there are advantages like between cross-selling on the retail side, like to what extent the individual profit centers work together whether the profit centers kind of leverage their collective scale with the carriers, like the procurement scale with the carriers. And then also if there's -- I know not to use the word synergies, but like I've never understood if there's any synergies, kind of vertically in the way that you guys have it all under one roof.

All right. Before you hand that back, I want to just ask on the synergies part of the question. When you say that, meaning, you're talking about not expense synergies, but success synergies and the capabilities vertically? Is that what you're talking about?

Yes. Like, for instance, I'm thinking if one -- if a customer, one profit center, could use a why, that's sold by another profit center or something like that?

Got it. Okay. So thank you for the question. Let's go back and say, let's just say, 10 years ago, we were truly a very decentralized organization, whereby the individual offices thought about building capabilities in those offices and then being able to serve that client base but we didn't do as good a job -- as good a job as we do now as leveraging capabilities outside the 4 walls, okay? So having said that, today, because we've won, invested and grown both organically and through acquisition, the capabilities. And there's -- fundamentally, it's all about trust. So if I'm in an office and you're in an office and if I don't trust you, why would I want to jeopardize my relationship even to write another piece of business, if I think you might drop the ball. In our organization, there's a lot of trust across the system now. And so what's happened is you could have a person, let's just say for the sake of this, where do you live, just so I know?

Omaha, Nebraska.

Omaha, Nebraska. That's right, the center of cultural enlightenment right behind Daytona Beach. So let's say that you went to high school with somebody and you grew up there. Did you grow up there?

No, we're up in California.

California. All right. So -- but you're in Omaha and somebody you play golf with or you work out with or a friend of your wife's, if you're married or whatever, somebody, they have a big business. because you've got some big businesses there, right? And let's say we have a small office in Omaha, Nebraska, we'll get -- which we don't. But let's just say, we might be coming to a town near you soon. But the point is you have that relationship, and it turns out your friend is the CFO of this company, which is a multibillion dollar company. Well, guess what, if you can marshal the resources. They're not going to do business with you just because you're best buds. It's too competitive in the marketplace today. But what they do, would do is they will give you an audience. And so it's like a warm introduction. So we might bring somebody from Atlanta and somebody from Chicago and somebody from Texas all up to that meeting and basically say, these are the capabilities that we have. And this is how we would then service your -- but you would be involved, okay? So I view that as a great win, and we have success stories like that across the organization. It's amazing. So particularly during COVID, where we were -- we did a lot of business and sold new business over the Internet, which I still can't believe, big, big accounts. we wrote really big accounts via video during -- where we didn't even get to go and see them. And we were linking people up and being able to deliver them better solutions, better delivery than it ever has. So again, it's about trust, it's about capability, which you got to have the capability first and the trust. And the knowledge and -- Barrett and the senior leadership team have done a great job of broadening, and we're still working on this, the knowledge of our capabilities that anybody on the team can access, whether you're in Omaha or you're Syracuse, New York or you're in Sarasota, Florida. So we're really excited about it. The whole thing. Really good. You could have -- there's a gentleman there that's in the investment business that owns the second largest car dealership in the United States, Warren Buffett. And I believe it's the second largest. We could help them with that. If you knew the person that ran that business, then -- and by the way, if you do know them anyway, we can still help them. But that's the way we think about it. It's good. What other questions?

Do we have any other questions? We'll do a final question, and then I've just got a couple of ramp-up comments.

I'm sure you'll love this one. Mike Zaremski from BMO. Curious if the Federal Trade Commission disallows non-competes next year in the float. What do you think that would have an impact on the industry?

Yes. So let's just start with the fact that when somebody sells a business, it's customary, not just Brown & Brown, but it's customary for that person to sign a non-compete in the business that she or he is selling to the buyer. And in doing so, if, in fact, there are not non-competes, in that case, the value of the asset will go down. So that's the first thing. The second thing is, remember, in our industry, it's customary to have a non-piracy non-solicitation. So the way our contracts have worked and continue to work is there's three parts. Number one, if we have a teammate, that decides to leave for any reason, we don't prohibit that person from working in the industry, making a living, the whole thing. We just say, Mike, you can't touch our customers for 2 years. That's the first thing. The second thing is you can't solicit our teammates for 2 years. And then number three, you can't take any of our proprietary information data or solutions. That's it. And so we don't believe that, that's, in any way, shape or form prohibiting commerce from occurring. Where I believe it is actually very much focused is on people that are providing services to customers, this is where the FTC has ramped up in service and marketing roles and those people might be making less than x, whatever x is. And by the way, if you -- I don't see a reason they would have a non-compete to begin with, but apparently, some people do. And so the answer is if she or he can't go down the street and get another job and they're making whatever they're making, that is tough. So I think there's a big distinction. We watch with great interest. But our industry, and you know this, but we believe in the contracts, we actually expect people to honor the contracts when they have a contract in place because we honor contracts. Now not everybody subscribes to that rule, there are firms that are out there that do the smash and grab or the steal method. I don't think fundamentally core values, that's not good, but everybody is different. Did you have another question? Nope. Thank you. Andy?

Okay. All right. Well, we'll go to close here because we're about 15 minutes over. For everybody that came down to Daytona Beach, thank you very much. We appreciate everyone coming for today. For everybody that joined us virtually, thank you again. I think we had 70 or 80 people online. Hopefully, you got a lot out of today and you've got real visibility across all of our businesses, but also into all of our leaders that are out there. I want to thank everybody that is a shareholder for entrusting your capital in Brown & Brown. We know that you've got other places that you can put it. And we really do appreciate all of the trust and investing alongside all of us. I want to thank all of the Brown & Brown team. So we've got a number of teammates here in the room and some of them are not. They help make all this happen today. So for all the Brown & Brown team, the events team, thank you very much for everything that you all did for us. We truly appreciate all of it. We have a number of our Board members that are still here. Thank you for making the travel down. For everybody that has questions on the back end, or anybody that was on virtually, just either reach out to myself or reach out to my wonderful assistant Alicia. We will figure out a time to set up for any additional questions that are out there. And then for everybody, then online, we'll go ahead and we're going to call this. And then for everybody here in the room, we have lunch outside. And then for anybody would like, we have tours around the building afterwards. Thank you very much.