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Public Broker Performance Vol II, Issue 2

MarshBerry Broker Index

Get the latest performance and insights on the public broker composite.

Marshberry Broker Composite Index And Earnings Update

Amidst the current market volatility, six public brokers, as measured by MarshBerry’s Broker Index, saw a slightly better return vs. the Dow Jones Industrial Average (DJIA) during the period from January 1, 2023 through February 28, 2023.

The following publicly traded insurance brokers are included in the Broker Index: 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). 

While these public brokers, as well as the DJIA, ended the January 1, 2023 through February 28, 2023 period in negative territory, the public broker composite declined by a slightly smaller percentage than the DJIA. However, the S&P 500 index saw a higher return at 3.4%, coming off a full year return in 2022 in which it was down -19.4%. By comparison, the DJIA was down -8.8% in 2022; and the public broker composite decreased by only -1.5% in 2022.

Illustration generated by MarshBerry with data sourced from Yahoo Finance. Data through 2/28/23.

Public brokers’ quarterly results are steady in a rocky environment

Insurance brokers once again reported overall positive results for Q4 2022 and the full year, which were attributed to a combination of improving new business, strong retention, and continued insurance rate increases.

These companies were also optimistic around 2023 growth targets. Organic growth figures reported in Q4 2022 were comparable to slightly higher than those seen in the prior Q3 2022. Most brokers reported organic growth rates in a wider range of 5%-12% in Q4 2022 vs. 6%-8% in Q3 2022.

  • MMC: Reported organic revenue growth of 9% for full year 2022, vs. 10% in full year 2021. MMC noted this continues its “best period of growth in more than two decades.” On a quarterly basis, the company reported 7% organic growth in Q4 2022, compared to 8% organic growth in Q3 2022 and 10% organic growth in Q2 2022.
  • BRO: Reported organic growth of 7.8% in Q4 2022, vs. 6.7% in Q3 2022. For the full year 2022, BRO had 8.1% organic growth, vs. 10.4% in 2021.
  • AJG:   11.7% organic growth in Q4 2022, vs. 8.4% in Q3 2022. AJG’s all-in organic growth for full year 2022 was 10%, vs. 8% for full year 2021.
  • WTW: Published consistent organic growth rates for Q4 2022 of 5%, coming in just below the previous quarter’s 6% and bringing the total year organic growth to 4%.
  • AON: Released a steady organic revenue growth of 5% in Q4 2022, matching that of Q3 2022, bringing their total 2022 organic growth rate to 6%.
  • BRP: Once again reported organic growth that was far above the public broker group average, with full year 2022 organic growth of 23% (vs. 2021’s 22%); and Q4 2022 organic growth of 26% (vs. Q3 2022’s 28%). BRP sees their differentiated operating model and significant recent investments resulting in outsized growth. While BRP expects global economic conditions to continue to be a challenge, the company sees its business as very resilient and well positioned. 

Brokers noted ongoing macroeconomic challenges 

While management at many brokers noted uncertainty about the macroeconomic environment, many also see their companies as being well positioned for continued growth.

For example, AJG Corporate VP & CFO Douglas K. Howell said on the firm’s Q4 2022 earnings conference call: “Looking forward to ’23, we’re currently not seeing a slowdown in our clients’ business activity.”  

President and CEO of MMC, Daniel Glaser, noted that the macro backdrop continues to be uncertain, MMC has a record of being resilient through economic cycles. 

AON Executive VP & CFO Christa Davies said on AON’s Q4 2022 earnings call: “While we’re seeing signs of economic uncertainty, we remain confident in the strength of our firm and our financial guidance for 2023. Overall, our business is resilient and our Aon United strategy gives us confidence in our ability to deliver results in any economic scenario.” For full year 2023, AON continues to project mid-single-digit or greater organic revenue growth, margin improvement and double-digit free cash flow growth. 

Public Broker Comps


*Results as of 2022

The MarshBerry Broker Index is a composite of market data on the following companies, sourced from Yahoo Finance: BRP, BRO, AON, AJG, MMC, WTW. It is prepared for analytical purposes only. This information 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.  

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. 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.  

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