Public Broker Performance July 2022

MarshBerry’s Broker’s Index.

The latest performance and insights on the public broker composite.

Public Brokers Continue to Showcase Higher Return

Year–to–date through June 30, 2022, MarshBerry’s Broker Index, comprised of six publicly traded insurance brokers (Arthur J. Gallagher & Co. (AJG), Aon plc. (AON), Brown & Brown, Inc. (BRO), Marsh & McLennan Companies, Inc. (MMC), Willis Towers Watson Public Limited Company (WTW), and BRP Group, Inc. (BRP), once again had a higher return vs. the S&P 500 and Dow Jones Industrial Average (DJIA) indices.

Shares of companies in the insurance brokerage industry can be a more stable area of investment during market volatility, rising inflation, tightening monetary policy, a potential recession, and continued geopolitical conflicts. The insurance industry has historically shown resiliency in bear markets. Furthermore, in the current inflationary environment, insurance brokerage companies’ results are benefiting from both exposure base and insurance rate increases.

As we enter the second quarter earnings period for insurance brokerages in July, MarshBerry will monitor whether management teams continue to have confidence that their firms will meet their goals for 2022, as they did when they reported first quarter results. July quarterly earnings reports will provide color on whether the demand at public brokers is being impacted by growing concerns around slowing economic growth. MarshBerry will also look for commentary around the continued moderation of insurance rate increases and the impact of rising inflation on loss costs and exposure growth.

This earnings summary has been prepared by Marsh, Berry & Co., LLC. and is not intended to provide investment recommendations on any company. It is not a research report, as such term is defined by applicable laws and regulations, and it does not contain sufficient information upon which to make an investment decision. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy. These materials are based solely on information contained in publicly available documents and Marsh, Berry & Co., LLC has not independently attempted to investigate or to verify such information.

Source: S&P Global Market Intelligence, Company Reports, FactSet 7/22/22. EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization. AON = Aon plc; AJG = Arthur J. Gallagher & Co.; BRO = Brown & Brown, Inc.; BRP = Baldwin Risk Partners; MMC = Marsh & McLennan Companies, Inc.; WTW = Willis Towers Watson Public Limited Company.