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

Hello, everyone, and welcome to the 2024 Annual Meeting of Shareholders for Brown & Brown Inc. Before we get started, I would like to go over a few items so you know how to participate in today's meeting. By default, you have joined the annual meeting using your computer speaker system. If you prefer to join over the telephone, select phone call in the audio pane and the dial-in information will be displayed. [Operator Instructions] You may also send in your questions at any time during the meeting, and we will collect these and address them during the Q&A session at the end of today's shareholder meeting. Today's meeting is being recorded. A replay of the webcast of this meeting will be available in the Investor Relations section of our website at www.bbinsurance.com. Beginning this afternoon and continuing for 30 days thereafter. I would now like to introduce Mr. J. Hyatt Brown, Chairman of Brown & Brown Inc. Go ahead.

Thank you, Clara. It's flatter to open the meeting, and I would like to start by introducing all the members of the Board who are attending. First of all, I'm Hyatt Brown, Chairman of the Board; Powell Brown, President and CEO; Larry Gellerstedt, Partner of Sweetwater Holdings Company and former Chairman of the Board and CEO of Cousins Properties Incorporated; Ted Hoepner, retired, former Vice Chairman SunTrust Bank Holding Company; Jim Hunt, former, Executive Vice President and Chief Financial Officer of Walt Disney Parks and Resorts Worldwide; Toni Jennings, Chairman, Jack Jennings & Sons, commercial construction firm and Jennings & Jennings, Inc., an architectural millwork firm; Paul Krump, retired, former Vice Chairman, Chubb Limited; Timothy Main, Head of Investment Banking, U.K., Europe, Middle East and Africa, at Barclays Plc; Bronek Masojada, retired, former Chief Executive Officer of Hiscox Group; Jaymin Patel, Executive Chairman, Perennial Climate Inc.; Palmer Proctor, Chief Executive Officer and Director of Ameris Bancorp and Chief Executive Officer, Ameris Bank; Wendell Reilly, Managing Partner of Grapevine Partners, LLC, private equity investment firm focused on media and communications; Kathleen Savio, retired, former Chief Transformation Officer, Zurich Insurance Group; Chilton D. Varner, Senior Counsel with the law firm King & Spalding; and Hugh Brown, Director of Emeritus. Now I would like to introduce the Section 16 officers, some of which are attending virtually. Myself, Chairman of the Board; Powell, President and Chief Executive Officer, Steve Boyd, Executive Vice President and President, Wholesale Brokerage Segment; Barrett Brown, Executive Vice President and President, Retail Segment; Gray Nester, Executive Vice President and Chief Information Officer; Scott Penny, Executive Vice and the Chief Acquisition Officer; Julie Turpin, Executive Vice President and Chief People Officer; Chris Walker, Executive Vice President and President, Program Segment; and Andy Watts, Executive Vice President, Chief Financial Officer and Treasurer. Now officers not subject to Section 16. Mike Bruce, John Esposito, Mike Keeby, Richard Knudson, Don McGowan, Mary Raveling, Paul Rogers, each of whom is the Senior Vice President with oversight responsibilities for our Retail segment. Anurag Batta, Kathy Colangelo and Joe Failla, each of whom is the Senior Vice president with oversight responsibilities for our wholesale brokerage segment. Tom Kussurelis, David Watts, [ Kansanback ] each of whom is a Senior Vice President with oversight responsibilities for our program segment. David V. Lotz, Vice President and Chief Corporate Counsel; C. Robert Mathis, Senior Vice President and Chief Legal Officer, Pattysue Rauh, Senior Vice President; and Chief Audit Officer; Anthony Robinson, Secretary; and Vaughn Stoll, Senior Vice President and Director of acquisitions. Also with us today in the room is Kara Klinger, who is the representative. She's the Audit Partner and Lead Client Service Partner of Deloitte & Touche for Brown & Brown. I ask now that Anthony Robinson act as the secretary of the meeting and [ Lynette Romero ] act as the inspector of elections. The inspector of elections has recently filed her oath of office with the secretary. The inspector of election has a mailing affidavit certifying that beginning on March 25, 2024, mailing of the proxy statement and all related materials was commenced to owners of outstanding capital stock of the company as of the close of business on March 4, 2024, the record day. The inspection of election also has a certified list of all common shareholders of Brown & Brown, Inc. as of the close of the business on the record date, which has been certified as true and correct by a Equiniti Trust Company in its capacity as transfer agent of the company. The list has been available for inspection for the past 10 days to the meaning of our principal office and is available during the meeting by sending request to [email protected]. Most of you have already submitted by mail or electronically. If you have not turned in your proxy or you wish to change your vote, please refer to the voting link on your screen. I have been informed by the inspector of elections that we have a quorum. The meeting is now lawfully convened, and we're ready to transact business. In the interest of saving time, I would like to suggest that we dispense with the meeting of the minutes of the last Annual Meeting of Shareholders which was held on May 3, 2023, and approve the minutes as set forth in the meeting book. Is there a motion?

So moved.

Is there a second?

Second.

Without objection shows adoption. We will now turn to the vote on the proposals for shareholders for voting set forth in the notice of annual meeting of the agenda -- and the agenda of the proxy statement. Number one, to elect 14 nominees of the company's Board of Directors as set forth -- and set forth in the proxy statement to ratify the appointment of Deloitte & Touche LLP as our independent registered public accountants for the fiscal year ending December 31, 2024, and to approve on an advisory basis the compensation of the named executive officer. This concludes the presentation of the proposals. The polls are now open to vote at www.AALvote.com/BRO for those shareholders who have followed the instructions in the proxy statement to vote their shares electronically at this meeting. Most of you have already submitted proxies by mail or telephone or electronically. If you have not voted or turned in your proxy or if you wish to change your vote, you must follow the instructions contained in your proxy material. We'll now hesitate for any who wish to change votes or vote at this time. The polls are now closed. The inspector of election has provided a preliminary report of the vote. Each of the 14 nominees for the Board of Directors has received sufficient votes in each case for election. Additionally, the ratification of Deloitte & Touche as the company's independent registered public accountants for the fiscal year ending December 31, 2024, has received sufficient votes for approval. And the approval on an advisory basis of the compensation of the named executive officers that succeed sufficient votes for approval. This concludes the scheduled meeting of business for this meeting. There will be no further business meetings adjourned. Now if there are any questions, I will remain open on the line, along with Powell Brown, our President and Chief Executive Officer; and Andy Watts, our Executive Vice President, Chief Financial Officer and Treasurer, to answer them. Thank you for being with us. Are there any questions? I hear no questions. Okay Clara, it's up to you hereon.

This concludes the shareholder meeting. Thank you to all shareholders for attending today's meeting. Enjoy the rest of your day.