On average Nasdaq-listed public companies saw
their primary D&O insurance premiums drop by 20 percent in
2022, with recent IPOs seeing even greater decreases
BRP Group, Inc. (NASDAQ: BRP) (“BRP Group”), an independent
insurance distribution firm delivering tailored insurance solutions
to a wide range of personal and commercial clients, today announced
its second annual Directors and Officers (D&O) Benchmarking
Report, revealing a steep decline in D&O insurance premiums in
2022, after several years of rate increases.
More than 350 public companies participated in this year’s
survey, conducted in collaboration with Nasdaq, Inc. (“Nasdaq”).
Participating companies provided key policy information regarding
their D&O insurance coverage. One of the top findings reveals
that after several years of significant increases in D&O
insurance costs, businesses are now seeing a significant reduction
in the premium and retention of their D&O coverage.
In fact, the Nasdaq-listed public companies that were surveyed,
on average, saw their primary D&O insurance layer decrease by
20 percent in 2022. Recent IPOs or DeSPACs saw an average 28
percent rate decrease for their primary layer. Of all companies
surveyed, recent Healthcare and Technology IPOs saw the largest
decreases at over 30 percent.
One finding of note was that even in this environment of rate
decreases, companies are opting for lower coverage amounts. The
report found that 25 percent of companies decreased their overall
limits, an increase from 2021 in which only 10 percent of companies
decreased their overall limits.
“Benchmarking your limits and premium against your peers is very
valuable information, especially in a time of significant rate
changes,” said Mike Tomasulo, Senior Managing Partner and National
Management Liability Practice Leader at BRP Group. “D&O
insurance is a major budget item for public companies, especially
during initial public offerings and DeSPAC transactions. As such,
companies need independent limits, pricings and claims data along
with a trusted advisor to help them manage these significant costs
while also securing best-in-class coverage and protecting corporate
directors and officers.”
Additional key findings from the report includes:
- The top three industries that continue to
see the most securities claims and pay the highest rates were
Healthcare, Technology and Consumer Discretionary
- On average, companies saw their total
D&O insurance program costs decrease by 35 percent, driven by
lower excess and A-Side rate
- Recent IPOs and DeSPACs saw their
retentions drop by 40 percent
- More than 75 percent of companies surveyed
saw their premiums remain flat or decrease
The report fully breaks down limits and purchasing data by
industry, market capitalization and whether the company is a recent
IPO or tenured public company. Additional data is also provided on
the changes in rates since last year on excess and A-Side layers
and identifies the most used primary carriers.
For a copy of the executive summary and information about
obtaining the full report, please click here.
ABOUT BRP GROUP
BRP Group, Inc. (NASDAQ: BRP) is an independent insurance
distribution firm delivering tailored insurance and risk management
insights and solutions that give our Clients the peace of mind to
pursue their purpose, passion and dreams. We are innovating the
industry by taking a holistic and tailored approach to risk
management, insurance and employee benefits, and support our
Clients, Colleagues, Insurance Company Partners and communities
through the deployment of vanguard resources and capital to drive
our growth. BRP Group represents over 1.2 million clients across
the United States and internationally. For more information, please
visit www.baldwinriskpartners.com.
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 BRP Group’s expectations or
beliefs concerning future events. Forward-looking statements are
statements other than historical facts and may include statements
that address future operating, financial or business performance or
BRP Group’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 BRP Group’s Annual Report on Form
10-K for the year ended December 31, 2022, and in BRP Group’s other
filings with the SEC, which are available free of charge on the
SEC's website at: www.sec.gov, including those risks and other
factors relevant to the business, financial condition and results
of operations of BRP Group. 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 BRP Group or to persons
acting on behalf of BRP Group 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 BRP 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.
Insurance products offered through one or more licensed
insurance agency affiliates of BRP Group.
METHODOLOGY
The BRP Group Management Liability Practice and Nasdaq worked
together for the second year in the row, to produce the D&O
Benchmarking Report. Our process involved crafting a survey that
was distributed to Nasdaq listed companies, which was designed to
gather crucial information on their director’s and officer's
insurance. After receiving more than 350 completed responses, we
thoroughly analyzed the data and utilized it to produce a
comprehensive final report.
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version on businesswire.com: https://www.businesswire.com/news/home/20230419005243/en/
PRESS Anna Rozenich, Sr. Director of Enterprise
Communications Baldwin Risk Partners
anna.rozenich@baldwinriskpartners.com INVESTOR RELATIONS
Bonnie Bishop, Executive Director, Investor Relations Baldwin Risk
Partners 813.259.8032 | IR@baldwinriskpartners.com
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