The Baldwin Insurance Group, Inc. Q2 FY2025 earnings call

• Generated strong overall results with organic revenue growth of 11%, adjusted EBITDA growth of 14%, etc. - Fully extinguished all earnout liabilities associated with partnerships completed during the first 5 years as a public company. - IAS had 10% organic revenue growth, sales velocity increased to 22% in Q2 with top decile new business performance. - UCTS had 21% organic revenue growth driven by multifamily portfolio, builder and real estate investor products, Juniper RE growth, offsetting E&S homeowners headwinds. - MIS had flat organic revenue growth due to QBE builder commission reduction and Medicare renewal headwinds, but momentum in mortgage/real estate embedded partners and Hippo acquisition benefits. - Completed acquisition of Hippo's homebuilder distribution network, adding 8 new partners, collaborating on new program, and incremental capacity.

In the second quarter, organic revenue growth was 11% overall. At Insurance Advisory Solutions (IAS), organic revenue growth was 10%. Underwriting, Capacity & Technology Solutions (UCTS) had organic revenue growth of 21%. Mainstreet Insurance Solutions (MIS) had flat organic revenue growth for the quarter. Total revenue for the second quarter was $378.8 million.

• Full year revenue forecast $1.5 billion to $1.52 billion, adjusted EBITDA range $345 million, organic growth in high single digits with various headwinds. - Third quarter revenue $355M to $365M, organic growth mid-single digits, adjusted EBITDA $70M to $75M, adjusted diluted EPS $0.28 to $0.31. - Confidence in 3B30 plan of $3 billion revenue and 30% adjusted EBITDA margin by 2029.

• Insurance market dynamics impacting rate and exposure, muted renewal premium change. - Renewal headwinds in Medicare business. - E&S homeowners book facing pricing pressure and competition.

Q: Tommy McJoynt on IAS organic growth drivers A: Trevor Baldwin on new business and rate/exposure factors Q: Greg Peters on adjusted free cash flow A: Brad Hale on working capital timing Q: Greg Peters on debt interest rate caps A: Brad Hale on no financial consequence Q: Greg Peters on MIS organic growth A: Trevor Baldwin on QBE commission and Medicare churn Q: Andrew Andersen on IAS adviser hiring A: Trevor Baldwin on headcount and productivity Q: Hristian Getsov on M&A multiples A: Trevor Baldwin on M&A pricing divergence Q: Josh Shanker on earnout payments A: Bradford Hale on remaining earnout Q: Pablo Singzon on employee benefits and IAS rate/exposure A: Trevor Baldwin on employee benefits and IAS rate normalization Q: Charlie Lederer on 2026 rate/exposure and E&S home pressure A: Trevor Baldwin on rate stabilization and E&S home market competition