v3.21.2
Segment Reporting (Notes)
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Information
BRP Group’s business is divided into four Operating Groups: Middle Market, Specialty, MainStreet, and Medicare.
•Middle Market provides private risk management, commercial risk management and employee benefits solutions for mid-to-large size businesses and high net worth individuals and families.
•Specialty represents a wholesale co-brokerage platform that delivers specialty insurers, professionals, individuals and niche industry businesses expanded access to exclusive specialty markets, capabilities and programs requiring complex underwriting and placement. Specialty also represents a leading technology platform, MGA of the Future, which is a national renter’s insurance product distributed via sub-agent partners and property management software providers, which has expanded distribution capabilities for new products through our wholesale and retail networks.
•MainStreet offers personal insurance, commercial insurance and life and health solutions to individuals and businesses in their communities.
•Medicare offers consultation for government assistance programs and solutions, including traditional Medicare and Medicare Advantage, to seniors and Medicare-eligible individuals through a network of agents.
In the Middle Market, MainStreet, and Specialty Operating Groups, the Company generates commissions and fees from insurance placement under both agency bill and direct bill arrangements. In addition, the Company generates profit sharing income in each of those segments based on either the underlying book of business or performance, such as loss ratios. In the Middle Market Operating Group only, the Company generates fees from service fee and consulting arrangements. Service fee arrangements are in place with certain customers in lieu of commission arrangements.
In the Medicare Operating Group, the Company generates commissions and fees in the form of direct bill insurance placement and marketing income. Marketing income is earned through co-branded marketing campaigns with the Company’s Insurance Company Partners.
The Company’s chief operating decision maker, the chief executive officer, uses net income before interest, taxes, depreciation, amortization, and one-time transactional-related expenses or non-recurring items to manage resources and make decisions about the business.
Summarized financial information concerning the Company’s Operating Groups is shown in the following tables. The Corporate and Other non-reportable segment includes any expenses not allocated to the Operating Groups and corporate-related items, including related party and third-party interest expense. Intersegment revenue and expenses are eliminated through the Corporate and Other column. Service center expenses and other overhead are allocated to the Company’s Operating Groups based on either revenue or headcount as applicable to each expense.
For the Three Months Ended September 30, 2021
(in thousands)Middle MarketSpecialtyMainStreetMedicare Corporate and Other Total
Commissions and fees (1)
$80,087 $41,986 $8,760 $5,665 $(942)$135,556 
Net income (loss)
(7,154)962 1,233 61 (19,324)(24,222)
__________
(1)    During the three months ended September 30, 2021, the Middle Market Operating Group recorded intercompany commissions and fees revenue from activity with the Specialty Operating Group of $604,000; the Specialty Operating Group recorded intercompany commissions and fees revenue from activity with itself of $41,000; the MainStreet Operating Group recorded intercompany commissions and fees revenue from activity with the Middle Market Operating Group of $121,000; and the Medicare Operating Group recorded intercompany commissions and fees revenue from activity with itself of $176,000. These intercompany commissions and fees are eliminated through Corporate and Other.
For the Three Months Ended September 30, 2020
(in thousands)Middle MarketSpecialtyMainStreetMedicare Corporate and Other Total
Commissions and fees
$26,561 $27,486 $7,905 $4,101 $(210)$65,843 
Net income (loss)
1,175 (1,278)1,197 214 (8,923)(7,615)
For the Nine Months Ended September 30, 2021
(in thousands)Middle MarketSpecialtyMainStreetMedicare Corporate and Other Total
Commissions and fees (1)
$266,751 $97,173 $25,558 $20,269 $(1,661)$408,090 
Net income (loss)
28,601 4,435 3,505 2,811 (53,064)(13,712)
__________
(1)    During the nine months ended September 30, 2021, the Middle Market Operating Group recorded intercompany commissions and fees revenue from activity with the Specialty Operating Group of $1.1 million; the Specialty Operating Group recorded intercompany commissions and fees revenue from activity with itself of $41,000; the MainStreet Operating Group recorded intercompany commissions and fees revenue from activity with the Middle Market Operating Group of $212,000; and the Medicare Operating Group recorded intercompany commissions and fees revenue from activity with itself of $336,000. These intercompany commissions and fees are eliminated through Corporate and Other.
For the Nine Months Ended September 30, 2020
(in thousands)Middle MarketSpecialtyMainStreetMedicare Corporate and Other Total
Commissions and fees
$69,311 $64,358 $23,917 $13,894 $(210)$171,270 
Net income (loss)
11,789 (6,190)3,397 2,661 (22,424)(10,767)
(in thousands)Middle MarketSpecialtyMainStreetMedicare Corporate and Other Total
Total assets at September 30, 2021$1,495,044 $328,005 $60,896 $56,609 $292,555 $2,233,109 
Total assets at December 31, 20201,194,185 188,360 58,957 43,675 44,737 1,529,914