The news follows on from Chubb’s recent financial data release that also showed a significant increase in revenue across a number of sectors for 2023.
Goosehead’s net income also exhibited remarkable growth, reaching $11.3 million, a notable increase from the $3 million reported a year ago.
This notable improvement in net income is attributed to robust revenue expansion and effective cost management, reflecting Goosehead’s commitment to financial discipline. The firm’s Core Revenues, a non-GAAP measure excluding contingent commissions, initial franchise fees, interest income, and other income, reached $63.1 million for Q3, marking a substantial 22% rise from $51.9 million in the corresponding period last year.
Goosehead attributes this Core Revenue growth to enhanced productivity, a robust client retention rate of 87%, and an upward trend in premium rates. The company also witnessed a significant increase in total written premiums for Q3, a leading indicator for future revenue growth, surging by 30% to reach $802.9 million. Concurrently, policies in force grew by 18% from the previous year to approximately 1,456,000.
Speaking about the report, Mark E. Jones, Chairman and CEO, said: “We had excellent third quarter results which further demonstrate the consistency and resilience of our business in the face of substantial macro challenges. For the quarter, premiums increased 30%, revenues were up 23%, core revenues grew 22%, net income grew 271%, and our adjusted EBITDA grew 104% with adjusted EBITDA margin expanding 13 percentage points.
“Our results this year are unfolding as we had planned as we have successfully implemented strategic changes to improve producer productivity and increase earnings power.
The next phase of our execution will be driving accelerating new business production growth in 2024, which we expect to spring load into accelerating revenue and earnings growth in 2025. And we will be driving this improved growth on a significantly higher and further expanding profitability base.
He added: “We have made tremendous progress this year investing in the quality of our people, process and technology. Our improved foundation further enhances our competitive moat and positions us well to execute on our long-term objective of personal lines industry leadership.”
Author: Joanna England
