Latest news with #TrevorBaldwin
Yahoo
13-06-2025
- Business
- Yahoo
Baldwin subsidiary to buy Hippo's homebuilder distribution network
Westwood Insurance Agency, an indirect subsidiary of the Baldwin Group, has agreed to acquire Hippo Holdings' homebuilder distribution network. This network generated revenues of approximately $29.2m in the most recent trailing 12-month period. The deal is contingent upon certain closing conditions, with an expected completion date of 1 July 2025. Additionally, Millennial Specialty Insurance (MSI), the managing general agency (MGA) of the Baldwin Group, has signed programme administrator and claims administration agreements with an affiliate of Hippo to establish a new homebuilder programme. This move is aimed at providing proprietary capacity for Westwood's builder partners. Baldwin Group CEO Trevor Baldwin said: 'As we continue to grow and innovate across the insurance value chain, we remain focused on maintaining and building strong relationships with our capacity partners, powering our continued insurance product innovation to support our clients amidst a rapidly evolving risk landscape. 'We look forward to our deepening relationship with the Hippo team and are excited about the opportunity to continue our growth trajectory via tech-enabled innovation.' Moreover, Hippo and its affiliates, including Spinnaker Insurance Company, will provide capacity and reinsurance support for existing and future programmes under MSI. Hippo president and CEO Rick McCathron stated: 'This long-term agreement with the Baldwin Group allows us to focus on what we do best – risk identification and selection, while providing an opportunity to accelerate the growth of our New Home business through Westwood's industry-leading homebuilder network. 'We [Spinnaker] are also excited to build on our decade-long support of Baldwin's MSI Renters and MSI Homeowners programmes, as we provide capacity to a broader range of Baldwin's MGA programmes.' In March, the Baldwin Group signed a note purchase agreement to raise $110m through surplus debentures to finance the launch of its reciprocal insurance exchange. "Baldwin subsidiary to buy Hippo's homebuilder distribution network " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Wire
12-06-2025
- Business
- Business Wire
The Baldwin Group Enters Into Agreement to Acquire Homebuilder Distribution Network From Hippo; Baldwin's Westwood and MSI Businesses Enter Into Various Commercial Agreements With Hippo and Its Affiliates to Support Ongoing Growth
TAMPA, Fla.--(BUSINESS WIRE)--The Baldwin Group announced today that, Westwood Insurance Agency LLC ('Westwood'), an indirect subsidiary of The Baldwin Group, has entered into an agreement to acquire from Hippo Holdings, Inc. ('Hippo') (NYSE:HIPO) and its affiliates all the outstanding equity interests of the various entities comprising Hippo's homebuilder distribution network. The Partnership, The Baldwin Group's nomenclature for a strategic acquisition, further solidifies Westwood's position as the preeminent insurance agency for the homebuilding industry. Hippo's homebuilder distribution network generated revenues of approximately $29.2 million in the most recent trailing 12-month period 1 and is expected to deliver approximately $7 million of adjusted EBITDA over the 12 months following the closing of the Partnership, which is currently anticipated to occur on or around July 1, 2025, subject to certain closing conditions. The Partnership is expected to be neutral to Net Leverage (as defined below) and accretive to 2026 pro forma adjusted Diluted EPS. 'We look forward to our deepening relationship with the Hippo team and are excited about the opportunity to continue our growth trajectory via tech-enabled innovation,' said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. Share Separate from the purchase of Hippo's homebuilder distribution network, Millennial Specialty Insurance, LLC ('MSI'), The Baldwin Group's managing general agency (MGA), has entered into a Program Administrator Agreement and a Claims Administration Agreement with an affiliate of Hippo on a new homebuilder program aimed at providing additional proprietary capacity for Westwood's builder partners. Additionally, Hippo and its affiliates, including Spinnaker Insurance Company, have committed to provide capacity and reinsurance support for existing and potential future MSI programs. 'Through the acquisition of Hippo's homebuilder distribution network, Westwood now provides an embedded insurance solution to 20 of the top 25 homebuilders 2 across the country,' said Jim Roche, President, The Baldwin Group and CEO, Underwriting Capacity and Technology Operations. 'The addition of Hippo's builder product, along with MSI's own product for new construction homes, gives Westwood even more capacity to support its builder clients in an otherwise challenging insurance market. This collaboration aligns with Westwood's goal to ensure that obtaining insurance is the easiest part of buying a home.' 'As we continue to grow and innovate across the insurance value chain, we remain focused on maintaining and building strong relationships with our capacity partners, powering our continued insurance product innovation to support our clients amidst a rapidly evolving risk landscape,' said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. 'We look forward to our deepening relationship with the Hippo team and are excited about the opportunity to continue our growth trajectory via tech-enabled innovation.' Rick McCathron, President and Chief Executive Officer of Hippo, remarked, 'This long-term agreement with The Baldwin Group allows us to focus on what we do best—risk identification and selection, while providing an opportunity to accelerate the growth of our New Home business through Westwood's industry-leading homebuilder network. We [Spinnaker] are also excited to build on our decade-long support of Baldwin's MSI Renters and MSI Homeowners programs, as we provide capacity to a broader range of Baldwin's MGA programs.' 1 Calculated as revenue attributable to acquired business for the most recent trailing twelve-month period prior to acquisition by The Baldwin Group at the time the due diligence was concluded based on a quality of earnings review and not an audit. 2 Builder Magazine's 2025 'Top 100' ABOUT THE BALDWIN GROUP The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. (NASDAQ: BWIN) ('Baldwin') and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion, and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit ABOUT WESTWOOD INSURANCE AGENCY Established in 1952, Westwood Insurance Agency LLC is a leading, full-service personal lines agency specializing in builder-sourced homeowners insurance and an indirect subsidiary of The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. (NASDAQ: BWIN) and its affiliates. Licensed in all 50 states, Westwood has served more than one million homeowners through relationships with leading U.S. homebuilders and top insurance companies. Westwood's unique platform facilitates seamless home closings by connecting builders, carriers, lenders and homebuyers with click-to-bind technology. For more information, please visit ABOUT MSI MSI, the brand name for Millennial Specialty Insurance, LLC, is one of the largest independent managing general agencies (MGAs) in the United States and an indirect subsidiary of The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. (NASDAQ: BWIN) and its affiliates. Offering more than 20 insurance products and solutions across personal, commercial, and professional lines, MSI thrives on solving challenges, delivering responsive service, and providing an easy insurance experience to its distribution partners and more than 1.5 million customers. Combining deep underwriting expertise with (re)insurer risk capacity, MSI creates specialized insurance solutions that empower our distribution partners to meet customers' unique needs. MSI is committed to delivering exceptional service and rapid resolutions to customers throughout the policy lifecycle and to building insurance better. Founded in 2015, MSI joined The Baldwin Group in 2019. For more information, please visit ABOUT HIPPO Hippo is a technology-enabled insurance group that leverages Spinnaker, its hybrid fronting carrier, to diversify risk across both personal and commercial lines. Through the Hippo Homeowners Insurance Program, the company applies deep industry expertise and strong underwriting capabilities to deliver tailored, proactive coverage for homeowners. With a flexible portfolio and a disciplined risk management approach, Hippo is well-positioned to adapt to changing market conditions and capitalize on market cycles. Hippo Holdings Inc. subsidiaries include Hippo Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Wingsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, please visit NON-GAAP FINANCIAL MEASURES AND NET LEVERAGE Adjusted EBITDA, adjusted diluted EPS and adjusted net income are not measures of financial performance under GAAP and should not be considered substitutes for GAAP measures, including net income (loss), diluted earnings (loss) per share or net income (loss) attributable to Baldwin, which we consider to be the most directly comparable GAAP measures. These Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for net income (loss), diluted earnings (loss) per share, or net income (loss) attributable to Baldwin or any other performance measures derived in accordance with GAAP. Other companies in our industry may define or calculate these non-GAAP financial measures differently than we do, and accordingly, these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of guidance regarding adjusted EBITDA and pro forma adjusted diluted EPS to the most directly comparable GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the consolidated income statement data prepared in accordance with GAAP. The Baldwin Group is currently unable to predict with a reasonable degree of certainty the type and extent of items that would be expected to impact these GAAP financial measures for these periods. The unavailable information could have a significant impact on the non-GAAP measures. We define adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, severance, and certain non-recurring items, including those related to raising capital. We believe that adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor's understanding of our financial performance. We define adjusted net income as net income (loss) attributable to Baldwin adjusted for depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, severance, and certain non-recurring costs that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. We believe that adjusted net income is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance. Pro forma adjusted diluted EPS measures our per share earnings excluding certain expenses as discussed above for adjusted net income and assuming all shares of Class B common stock were exchanged for Class A common stock on a one-for-one basis. Pro forma adjusted diluted EPS is calculated as adjusted net income plus adjusted net income from Partnerships in the unowned period divided by adjusted diluted weighted-average shares outstanding. We believe adjusted diluted EPS is useful to investors because it enables them to better evaluate per share operating performance across reporting periods. Net Leverage is defined as 'Consolidated First Lien Debt to Consolidated EBITDA Ratio' in our Amended and Restated Credit Agreement, dated as of May 24, 2024 (as amended). ADDITIONAL INFORMATION For more information about The Baldwin Group and the expected pro forma impact of the Partnership discussed in this press release, investors and interested parties can access the presentation titled, The Baldwin Group Presentation - June 12, 2025, available at NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain various 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, which represent The Baldwin Group's expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address The Baldwin Group's future operating, financial or business performance or The Baldwin Group's strategies or expectations, including those about the Partnership and other transactions described above. In some cases, you can identify these statements by forward-looking words such as 'may,' 'might,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' 'projects,' 'potential,' 'outlook' or 'continue,' or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption 'Risk Factors' in The Baldwin Group's Annual Report on Form 10-K for the year ended December 31, 2024 and in The Baldwin Group's other filings with the U.S. Securities and Exchange Commission (the 'SEC'), which are available free of charge on the SEC's website at: including those risks and other factors relevant to The Baldwin Group's completion and integration of the Partnership and other transactions described above, matters assessed in The Baldwin Group's due diligence, the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreements, the risk that necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated, the risk that the Partnership and other transactions described above will not be consummated in a timely manner, risks related to the disruption of management time from ongoing business operations due to the Partnership and other transactions described above, and The Baldwin Group's business, financial condition and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to The Baldwin Group or to persons acting on The Baldwin Group's behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and The Baldwin Group does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.
Yahoo
27-05-2025
- Business
- Yahoo
The Baldwin Group to Participate in the William Blair Growth Stock Conference
TAMPA, Fla., May 27, 2025--(BUSINESS WIRE)--The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Company") (NASDAQ: BWIN) and its affiliates, today announced that Trevor Baldwin, Chief Executive Officer, and Brad Hale, Chief Financial Officer, will be presenting at the William Blair Growth Stock Conference on Tuesday, June 3, 2025 at 9:40 am Eastern Time. A live webcast of the presentation can be accessed from the investor relations section on the Company's website at Following the conference, a replay will be made available at the same location. ABOUT THE BALDWIN GROUP The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. (NASDAQ: BWIN) and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit View source version on Contacts INVESTOR RELATIONS Bonnie Bishop, Executive Director, Investor RelationsThe Baldwin Group813.259.8032 | IR@ MEDIA RELATIONS Anna Rozenich, Senior Director, Enterprise CommunicationsThe Baldwin Group630.561.5907 | Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
The Baldwin Group Announces First Quarter 2025 Results
A webcast replay of the call will be available at for one year following the call. Baldwin will host a webcast and conference call to discuss first quarter 2025 results today at 5:00 PM ET. A live webcast and a slide presentation of the conference call will be available on Baldwin's investor relations website at . The dial-in number for the conference call is (877) 451-6152 (toll-free) or (201) 389-0879 (international). Please dial the number 10 minutes prior to the scheduled start time. As of March 31, 2025, cash and cash equivalents were $81.8 million and the Company had $586 million of borrowing capacity under its revolving credit facility. "The resilience and durability of our business and operating model was demonstrated in the first quarter as we continued to achieve double-digit organic revenue growth while increasing adjusted EBITDA by 12% and adjusted diluted EPS by 16%," said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. "As we have reached a significant inflection point with the vast majority of our earnout obligations behind us, our growing financial flexibility leaves us well positioned to accelerate momentum across our strategic priorities." Adjusted EBITDA margin of 27.5%, expansion of 80 basis points compared to 26.7% in the prior-year period TAMPA, Fla., May 06, 2025 --( BUSINESS WIRE )--The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin" or the "Company") (NASDAQ: BWIN), an independent insurance distribution firm delivering tailored insurance solutions to a wide range of personal and commercial clients, today announced its results for the first quarter ended March 31, 2025. — Adjusted EBITDA (3) Growth of 12% Year-Over-Year to $113.8 Million and Adjusted EBITDA Margin (3) of 28%; 80 Basis Point Expansion Compared to the Prior-Year Period — — Net Income of $24.9 Million and Diluted Earnings Per Share of $0.20; Adjusted Diluted EPS (2) Growth of 16% to $0.65 — Story Continues ABOUT THE BALDWIN GROUP The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin") (NASDAQ: BWIN) and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit FOOTNOTES (1) Organic revenue for the three months ended March 31, 2024 used to calculate organic revenue growth for the three months ended March 31, 2025 was $372.3 million, which is adjusted to exclude commissions and fees from divestitures that occurred during 2024 and 2025. Organic revenue and organic revenue growth are non-GAAP measures. Reconciliation of organic revenue and organic revenue growth to commissions and fees, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release. (2) Adjusted net income and adjusted diluted EPS are non-GAAP measures. Reconciliation of adjusted net income to net income attributable to Baldwin and reconciliation of adjusted diluted EPS to diluted earnings per share, the most directly comparable GAAP financial measures, is set forth in the reconciliation table accompanying this release. (3) Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. Reconciliation of adjusted EBITDA and adjusted EBITDA margin to net income, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release. (4) Adjusted free cash flow is a non-GAAP measure. Reconciliation of adjusted free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release. NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Baldwin's expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address Baldwin's future operating, financial or business performance or Baldwin's strategies or expectations. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "projects," "potential," "outlook" or "continue," or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption "Risk Factors" in Baldwin's Annual Report on Form 10-K for the year ended December 31, 2024 and in Baldwin's other filings with the SEC, which are available free of charge on the SEC's website at: including those risks and other factors relevant to Baldwin's business, financial condition and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Baldwin or to persons acting on Baldwin's behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Baldwin does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law. THE BALDWIN INSURANCE GROUP, INC. Condensed Consolidated Statements of Comprehensive Income (Unaudited) For the Three Months Ended March 31, (in thousands, except share and per share data) 2025 2024 Revenues: Commissions and fees $ 410,531 $ 378,096 Investment income 2,874 2,271 Total revenues 413,405 380,367 Operating expenses: Colleague compensation and benefits 198,020 201,055 Outside commissions 65,823 61,037 Other operating expenses 58,019 45,795 Amortization expense 25,882 24,041 Change in fair value of contingent consideration 8,061 12,676 Depreciation expense 1,583 1,505 Total operating expenses 357,388 346,109 Operating income 56,017 34,258 Other income (expense): Interest expense, net (29,976 ) (31,545 ) Gain on divestitures 1,401 36,516 Loss on extinguishment and modification of debt (2,394 ) — Other income (expense), net (150 ) 538 Total other income (expense), net (31,119 ) 5,509 Income before income taxes 24,898 39,767 Income tax expense — 667 Net income 24,898 39,100 Less: net income attributable to noncontrolling interests 10,959 17,522 Net income attributable to Baldwin $ 13,939 $ 21,578 Comprehensive income $ 24,898 $ 39,100 Comprehensive income attributable to noncontrolling interests 10,959 17,522 Comprehensive income attributable to Baldwin 13,939 21,578 Basic earnings per share $ 0.21 $ 0.35 Diluted earnings per share $ 0.20 $ 0.33 Weighted-average shares of Class A common stock outstanding - basic 66,067,143 61,856,147 Weighted-average shares of Class A common stock outstanding - diluted 69,327,694 65,314,248 THE BALDWIN INSURANCE GROUP, INC. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 81,781 $ 90,045 Fiduciary cash 217,280 222,724 Assumed premiums, commissions and fees receivable, net 331,342 283,553 Fiduciary receivables 408,000 418,543 Prepaid expenses and other current assets 17,417 11,625 Total current assets 1,055,820 1,026,490 Property and equipment, net 22,332 21,972 Right-of-use assets 71,357 72,367 Other assets 49,217 48,041 Intangible assets, net 937,612 953,492 Goodwill 1,412,369 1,412,369 Total assets $ 3,548,707 $ 3,534,731 Liabilities, Mezzanine Equity and Stockholders' Equity Current liabilities: Fiduciary liabilities $ 625,280 $ 641,267 Commissions payable 87,463 73,126 Accrued expenses and other current liabilities 157,245 160,631 Related party notes payable — 5,635 Colleague earnout incentives 17,959 32,826 Current portion of contingent earnout liabilities 45,473 142,949 Total current liabilities 933,420 1,056,434 Long-term debt, less current portion 1,495,908 1,398,054 Contingent earnout liabilities, less current portion 2,761 2,610 Operating lease liabilities, less current portion 68,162 68,775 Other liabilities 61 61 Total liabilities 2,500,312 2,525,934 Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest 371 453 Stockholders' equity: Class A common stock, par value $0.01 per share, 300,000,000 shares authorized; 69,852,390 and 67,979,419 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 699 680 Class B common stock, par value $0.0001 per share, 100,000,000 shares authorized; 48,292,594 and 49,552,686 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 5 5 Additional paid-in capital 816,418 793,954 Accumulated deficit (197,484 ) (211,423 ) Total stockholders' equity attributable to Baldwin 619,638 583,216 Noncontrolling interest 428,386 425,128 Total stockholders' equity 1,048,024 1,008,344 Total liabilities, mezzanine equity and stockholders' equity $ 3,548,707 $ 3,534,731 THE BALDWIN INSURANCE GROUP, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended March 31, (in thousands) 2025 2024 Cash flows from operating activities: Net income $ 24,898 $ 39,100 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 27,465 25,546 Change in fair value of contingent consideration 8,061 12,676 Share-based compensation expense 12,803 14,094 Payment of contingent earnout consideration in excess of purchase price accrual (78,193 ) (16,318 ) Gain on divestitures (1,401 ) (36,516 ) Amortization of deferred financing costs 1,422 1,552 Loss on interest rate caps 18 26 Other (gain) loss 708 (4 ) Changes in operating assets and liabilities: Assumed premiums, commissions and fees receivable, net (47,789 ) (32,835 ) Prepaid expenses and other current assets (6,708 ) (4,629 ) Right-of-use assets 3,775 4,186 Accounts payable, accrued expenses and other current liabilities 9,892 232 Colleague earnout incentives (14,854 ) (1,391 ) Operating lease liabilities (4,080 ) (2,712 ) Net cash provided by (used in) operating activities (63,983 ) 3,007 Cash flows from investing activities: Capital expenditures (8,933 ) (8,146 ) Proceeds from divestitures, net of cash transferred 1,401 54,448 Investments in and loans for business ventures (620 ) (3,189 ) Cash consideration paid for asset acquisitions (460 ) — Proceeds from repayment of related party loans — 1,500 Net cash provided by (used in) investing activities (8,612 ) 44,613 Cash flows from financing activities: Change in fiduciary receivables and liabilities, net (5,444 ) (113 ) Payment of contingent earnout consideration up to amount of purchase price accrual (32,841 ) (32,794 ) Proceeds from revolving line of credit 9,000 70,000 Payments on revolving line of credit (9,000 ) (77,000 ) Proceeds from refinancing of long-term debt 935,800 — Payments relating to extinguishment and modification of long-term debt (835,800 ) — Payments on long-term debt (2,340 ) (2,561 ) Proceeds from the settlement of interest rate caps — 2,300 Other financing activity (488 ) (98 ) Net cash provided by (used in) financing activities 58,887 (40,266 ) Net increase (decrease) in cash and cash equivalents and fiduciary cash (13,708 ) 7,354 Cash and cash equivalents and fiduciary cash at beginning of period 312,769 226,963 Cash and cash equivalents and fiduciary cash at end of period $ 299,061 $ 234,317 NON-GAAP FINANCIAL MEASURES Adjusted EBITDA, adjusted EBITDA margin, organic revenue, organic revenue growth, adjusted net income, adjusted diluted earnings per share ("EPS") and adjusted net cash provided by operating activities ("adjusted free cash flow") are not measures of financial performance under GAAP and should not be considered substitutes for GAAP measures, including commissions and fees (for organic revenue and organic revenue growth), net income (loss) (for adjusted EBITDA and adjusted EBITDA margin), net income (loss) attributable to Baldwin (for adjusted net income), diluted earnings (loss) per share (for adjusted diluted EPS) or net cash provided by (used in) operating activities (for adjusted free cash flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for commissions and fees, net income (loss), net income (loss) attributable to Baldwin, diluted earnings (loss) per share, net cash provided by (used in) operating activities or other consolidated income statement data prepared in accordance with GAAP. Other companies in our industry may define or calculate these non-GAAP financial measures differently than we do, and accordingly, these measures may not be comparable to similarly titled measures used by other companies. We define adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, severance, and certain non-recurring items, including those related to raising capital. We believe that adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor's understanding of our financial performance. Adjusted EBITDA margin is adjusted EBITDA divided by total revenue. Adjusted EBITDA margin is a key metric used by management and our board of directors to assess our financial performance. We believe that adjusted EBITDA margin is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance, and that the presentation of this measure enhances an investor's understanding of our financial performance. We believe that adjusted EBITDA margin is helpful in measuring profitability of operations on a consolidated level. Adjusted EBITDA and adjusted EBITDA margin have important limitations as analytical tools. For example, adjusted EBITDA and adjusted EBITDA margin: do not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future; do not reflect changes in, or cash requirements for, our working capital needs; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt; do not reflect share-based compensation expense and other non-cash charges; and exclude certain tax payments that may represent a reduction in cash available to us. We calculate organic revenue based on commissions and fees for the relevant period by excluding (i) the first twelve months of commissions and fees generated from new partners and (ii) commissions and fees from divestitures. Organic revenue growth is the change in organic revenue period-to-period, with prior period results adjusted to (i) include commissions and fees that were excluded from organic revenue in the prior period because the relevant partners had not yet reached the twelve-month owned mark, but which have reached the twelve-month owned mark in the current period, and (ii) exclude commissions and fees related to divestitures from organic revenue. For example, commissions and fees from a partner acquired on June 1, 2024 are excluded from organic revenue for 2024. However, after June 1, 2025, results from June 1, 2024 to December 31, 2024 for such partners are compared to results from June 1, 2025 to December 31, 2025 for purposes of calculating organic revenue growth in 2025. Organic revenue growth is a key metric used by management and our board of directors to assess our financial performance. We believe that organic revenue and organic revenue growth are appropriate measures of operating performance as they allow investors to measure, analyze and compare growth in a meaningful and consistent manner. We define adjusted net income as net income (loss) attributable to Baldwin adjusted for depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related partnership and integration expenses, severance, and certain non-recurring costs that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. We believe that adjusted net income is an appropriate measure of operating performance because it eliminates the impact of income and expenses that do not relate to business performance. Adjusted diluted EPS measures our per share earnings excluding certain expenses as discussed above for adjusted net income and assuming all shares of Class B common stock were exchanged for Class A common stock on a one-for-one basis. Adjusted diluted EPS is calculated as adjusted net income divided by adjusted diluted weighted-average shares outstanding. We believe adjusted diluted EPS is useful to investors because it enables them to better evaluate per share operating performance across reporting periods. We calculate adjusted free cash flow because we incur substantial earnout liabilities in conjunction with our partnership strategy. Adjusted free cash flow is calculated as net cash provided by (used in) operating activities excluding the impact of: (i) the payment of contingent earnout consideration in excess of purchase price accrual, and (ii) the payment of colleague earnout incentives. We believe that adjusted free cash flow is an important measure of our ability to generate cash from our business operations. Beginning January 1, 2025, the Company is presenting its fiduciary assets and liabilities separately on the consolidated balance sheets. Previously, these assets and liabilities were comingled on the consolidated balance sheets and the net change in cash balances held to remit to insurance carriers was presented as cash flows from operating activities. The net change in fiduciary cash is now presented as cash flows from financing activities in the consolidated statements of cash flows. As a result, the change in premiums, commissions and fees receivable, net and the change in accounts payable, accrued expenses and other current liabilities are no longer excluded from net cash provided by (used in) operating activities in calculating adjusted free cash flow for the 2025 reporting period and comparable prior periods. However, because the change in fiduciary receivables and fiduciary liabilities previously was combined with the change in premiums, commissions and fees receivable, net and the change in accounts payable, accrued expenses and other current liabilities in the consolidated statements of cash flows, this change in presentation has resulted in a change in our previously reported adjusted free cash flow for previous periods. Reconciliation of guidance regarding adjusted EBITDA, organic revenue growth and adjusted diluted EPS to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to commissions and fees, net income (loss), diluted earnings (loss) per share or other consolidated income statement data prepared in accordance with GAAP. The Company is currently unable to predict with a reasonable degree of certainty the type and extent of items that would be expected to impact these GAAP financial measures for these periods. The unavailable information could have a significant impact on the non-GAAP measures. Adjusted EBITDA and Adjusted EBITDA Margin The following table reconciles adjusted EBITDA and adjusted EBITDA margin to net income, which we consider to be the most directly comparable GAAP financial measure: For the Three Months Ended March 31, (in thousands, except percentages) 2025 2024 Revenues $ 413,405 $ 380,367 Net income $ 24,898 $ 39,100 Adjustments to net income: Interest expense, net 29,976 31,545 Amortization expense 25,882 24,041 Share-based compensation 12,803 14,094 Change in fair value of contingent consideration 8,061 12,676 Colleague earnout incentives (3,269 ) 3,583 Loss on extinguishment and modification of debt 2,394 — Depreciation expense 1,583 1,505 Transaction-related partnership and integration expenses 1,533 4,904 Income and other taxes(1) 1,471 1,501 Gain on divestitures (1,401 ) (36,516 ) Severance 1,207 1,689 Loss on interest rate caps 18 26 Other(2) 8,639 3,538 Adjusted EBITDA $ 113,795 $ 101,686 Net income margin 6 % 10 % Adjusted EBITDA margin 27.5 % 26.7 % __________ (1) Income and other taxes include the Tax Receivable Agreement expense and other operating tax expense, such as state taxes, under GAAP. (2) Other addbacks to adjusted EBITDA include certain income and expenses that are considered to be non-recurring or non-operational, including certain recruiting costs, professional fees, litigation costs and bonuses. Organic Revenue and Organic Revenue Growth The following table reconciles organic revenue and organic revenue growth to commissions and fees, which we consider to be the most directly comparable GAAP financial measure: For the Three Months Ended March 31, (in thousands, except percentages) 2025 2024 Commissions and fees $ 410,531 $ 378,096 Partnership commissions and fees(1) — — Organic revenue $ 410,531 $ 378,096 Organic revenue growth(2) $ 38,219 $ 51,051 Organic revenue growth %(2) 10 % 16 % __________ (1) Includes the first twelve months of such commissions and fees generated from newly acquired partners. (2) Organic revenue for the three months ended March 31, 2024 used to calculate organic revenue growth for the three months ended March 31, 2025 was $372.3 million, which is adjusted to exclude commissions and fees from divestitures that occurred during 2024 and 2025. Adjusted Net Income and Adjusted Diluted EPS The following table reconciles adjusted net income to net income attributable to Baldwin and reconciles adjusted diluted EPS to diluted earnings per share, which we consider to be the most directly comparable GAAP financial measures: For the Three Months Ended March 31, (in thousands, except per share data) 2025 2024 Net income attributable to Baldwin $ 13,939 $ 21,578 Net income attributable to noncontrolling interests 10,959 17,522 Amortization expense 25,882 24,041 Share-based compensation 12,803 14,094 Change in fair value of contingent consideration 8,061 12,676 Colleague earnout incentives (3,269 ) 3,583 Loss on extinguishment and modification of debt 2,394 — Depreciation 1,583 1,505 Transaction-related partnership and integration expenses 1,533 4,904 Amortization of deferred financing costs 1,422 1,552 Gain on divestitures (1,401 ) (36,516 ) Severance 1,207 1,689 Income tax expense(1) 1,200 — Loss on interest rate caps, net of cash settlements 18 2,326 Other(2) 8,639 3,538 Adjusted pre-tax income 84,970 72,492 Adjusted income taxes(3) 8,412 7,177 Adjusted net income $ 76,558 $ 65,315 Weighted-average shares of Class A common stock outstanding - diluted 69,328 65,314 Exchange of Class B common stock(4) 49,045 51,994 Adjusted diluted weighted-average shares outstanding 118,373 117,308 Diluted earnings per share $ 0.20 $ 0.33 Effect of exchange of Class B common stock and net income attributable to noncontrolling interests per share 0.01 — Other adjustments to income per share 0.51 0.29 Adjusted income taxes per share (0.07 ) (0.06 ) Adjusted diluted EPS $ 0.65 $ 0.56 ___________ (1) Income tax expense includes the Tax Receivable Agreement expense. (2) Other addbacks to adjusted net income include certain income and expenses that are considered to be non-recurring or non-operational, including certain recruiting costs, professional fees, litigation costs and bonuses. (3) Represents corporate income taxes at an assumed effective tax rate of 9.9% applied to adjusted pre-tax income. (4) Assumes the full exchange of Class B common stock for Class A common stock pursuant to the Amended LLC Agreement. Adjusted Net Cash Provided by Operating Activities ("Adjusted Free Cash Flow") The following table reconciles adjusted free cash flow to net cash provided by (used in) operating activities, which we consider to be the most directly comparable GAAP financial measure: For the Three Months Ended March 31, (in thousands) 2025 2024 Net cash provided by (used in) operating activities $ (63,983 ) $ 3,007 Adjustments to net cash provided by (used in) operating activities: Payment of contingent earnout consideration in excess of purchase price accrual 78,193 16,318 Payment of colleague earnout incentives 11,599 4,974 Adjusted free cash flow $ 25,809 $ 24,299 COMMONLY USED DEFINED TERMS The following terms have the following meanings throughout this press release unless the context indicates or requires otherwise: Amended LLC Agreement Third Amended and Restated Limited Liability Company Agreement of The Baldwin Insurance Group Holdings, LLC (formerly Baldwin Risk Partners, LLC), as amended clients Our insureds colleagues Our employees GAAP Accounting principles generally accepted in the United States of America insurance company partners Insurance companies with which we have a contractual relationship partners Companies that we have acquired, or in the case of asset acquisitions, the producers partnerships Strategic acquisitions made by the Company SEC U.S. Securities and Exchange Commission View source version on Contacts MEDIA RELATIONS Anna Rozenich, Senior Director, Enterprise Communications The Baldwin Group 630.561.5907 | INVESTOR RELATIONS Bonnie Bishop, Executive Director, Investor Relations The Baldwin Group 813.259.8032 | IR@
Yahoo
01-05-2025
- Business
- Yahoo
New Survey: Commercial Insurance Market Holds Steady in Q1, but The Baldwin Group Advises Preparedness as Conditions Evolve
Cyber, Management Liability, and Workers' Compensation Pricing Remain Stable, While Momentum Behind Pricing Declines in Property Builds; Commercial Auto and Umbrella Lines Face Continued Pressures TAMPA, Fla., May 01, 2025--(BUSINESS WIRE)--The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin") (NASDAQ: BWIN) and its affiliates, issued its Q1 2025 Market Pulse Report showing signs of continued resilience across much of the commercial insurance landscape, although underlying pressures could test market stability later this year. Across The Baldwin Group's book of business, cyber, management liability, and workers' compensation lines maintained relative stability through the first quarter of 2025. Innovations in underwriting, sustained carrier capacity, and moderating loss trends contributed to a favorable environment for insureds in these segments. In contrast, commercial auto and umbrella lines continue to show signs of loss cost pressure with pricing continuing its upward trend. Both saw over 10% year-over-year increases, driven by entrenched loss trends, rising repair costs, and social inflation. The property insurance market is showcasing the resilience of the commercial insurance marketplace broadly with a year-over-year deceleration in rate increases (from +13.2% in Q1 2024 to +3.0% in Q1 2025), despite ongoing climate-driven loss activity. Clients with exposure to peak catastrophe zones should remain vigilant to account-specific reversal of these trends after a series of early-year natural disasters, including California's January wildfires that significantly impacted catastrophe budgets. "The market is stable in many areas but is not without its challenges," said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. "Our focus remains on helping clients stay ahead of shifting conditions—whether by reassessing coverage structures, finding opportunities to mitigate cost pressures, or strengthening overall resilience strategies for growth." Favorable reinsurance renewals, broader market competition, and expanded capacity from MGAs and the London market contributed to recent softening trends, particularly in property. However, Baldwin notes that continued climate volatility, inflation, and evolving regulatory factors could influence the market trajectory over the remainder of 2025. The Baldwin Group's latest State of the Market report also highlights forward-looking concerns such as supply chain disruption, third-party litigation funding trends, and the potential impact of new tariffs on insurance claims costs. "Clients have an important window right now to optimize their programs and prepare for potential shifts ahead," Trevor Baldwin added. "Strategic adjustments today can help protect against volatility that may emerge later in the year." For more details, access the full Q1 2025 Market Pulse Report and the State of the Market report at ABOUT THE Q1 2025 MARKET PULSE REPORT The Baldwin Group's Market Pulse report offers a detailed overview of high-level pricing trends within The Baldwin Group's book of business by quarter since 2021. It serves as an invaluable tool for stakeholders to glean insight into insurance price movement and the dynamics affecting premium costs. Please note that this report should be used as a guide and does not constitute individualized financial advice. ABOUT THE BALDWIN GROUP The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin") (NASDAQ: BWIN) and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion, and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Baldwin's expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address Baldwin's future operating, financial or business performance or Baldwin's strategies or expectations. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "projects," "potential," "outlook" or "continue," or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption "Risk Factors" in Baldwin's Annual Report on Form 10-K for the year ended December 31, 2024 and in Baldwin's other filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available free of charge on the SEC's website at: including those risks and other factors relevant to Baldwin's business, financial condition and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Baldwin or to persons acting on Baldwin's behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Baldwin does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law. View source version on Contacts MEDIA RELATIONS Anna Rozenich, Senior Director, Enterprise Communications, The Baldwin Group630.561.5907 | INVESTOR RELATIONS Bonnie Bishop, Executive Director, Investor Relations, The Baldwin Group813.259.8032 | IR@ Sign in to access your portfolio
