The Baldwin Insurance Group, Inc.

What they do

Baldwin distributes commercial property and casualty insurance, employee benefits, personal lines, wealth management and retirement services, and Medicare through approximately 5,000 colleagues, including about 900 risk advisors. It is a holding company whose sole material asset is its ownership interest in Baldwin Holdings, through which all business is conducted. Commissions are generally based on a percentage of premiums paid by insureds, so revenue follows premium levels, and the firm also builds out MSI, a technology-enabled platform serving internal advisors and external distribution partners.

Revenue drivers

• Core commissions — Commissions and fees revenue excluding profit-sharing and other income; directly tied to premiums and commission rates set by insurance company partners.
• Commercial property and casualty — Core product line alongside employee benefits and personal lines; sells on reputation, client service and industry expertise rather than price.
• Employee benefits, wealth and Medicare — Diversified product offerings distributed through roughly 125 offices in 24 states to more than three million clients.
• MSI / technology-enabled solutions — Proprietary insurance solutions delivered to internal risk advisors and a growing channel of external distribution partners; includes the Hippo homebuilder network partnership effective July 1, 2025.

Recent performance

Second quarter 2026 total revenue rose 30% year-over-year to $492.9 million, with organic revenue growth of 2% and CAC Group total revenue growth of 23%. GAAP net loss was $56.0 million, or $0.42 diluted loss per share, while adjusted EBITDA grew 37% to $116.7 million and adjusted diluted EPS rose 14% to $0.48. Net loss margin was 11% and adjusted EBITDA margin was 23.7%, a 110 basis point expansion from 22.6%. Six-month 2026 revenue increased 29% to $1.0 billion, with a $57.9 million net loss, adjusted EBITDA of $254.0 million and adjusted free cash flow up 34% to $46.2 million.

Strategy

Baldwin's stated growth plan is to continue recruiting, training and developing risk advisor talent, add geographic and product expertise through its partnership (acquisition) strategy, and build out MSI. It completed the CAC Group partnership on January 1, 2026 and added the Hippo homebuilder distribution network effective July 1, 2025. In January 2026 it entered additional financing for $600 million of incremental term loans, raising aggregate Term Loans to approximately $1.6 billion, and it hedges floating-rate exposure with a $500 million floating-to-fixed interest rate swap.

Risks

• Premium and commission rate pressure — Commissions and fees are based on premiums and rates set by insurance company partners, so decreases or partner repayment demands would reduce revenue or create expenses.
• Debt and financial flexibility — The company states it may incur significant additional indebtedness and that existing debt subjects it to restrictions that could limit how it operates the business.
• Integration of partnerships — Baldwin acknowledges it may fail to integrate acquired businesses or achieve expected benefits, and may inherit liabilities of those businesses that were unknown to it.
• Operating cash flow shortfall — The company warns it may not have sufficient cash flow from operations, cash on hand and available capital to service indebtedness, pay contingent earnout liabilities or fund working capital.

Outlook

Management said it has largely lapped the idiosyncratic, one-time headwinds and expects them to transition into tailwinds in the back half of 2026. It cited sales velocity of 30% in its combined IAS business and normalized organic growth of 8%. CEO Trevor Baldwin said the company remains excited about opportunities for shareholders, clients and colleagues in the coming year.