What is BRP Group Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, BRP Group's Probability of Financial Distress (%) is 0.07%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of BRP Group's Probability of Financial Distress (%)
For the Insurance Brokers subindustry, BRP Group's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
BRP Group's Probability of Financial Distress (%) Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, BRP Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where BRP Group's Probability of Financial Distress (%) falls into.
BRP Group Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.30 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
BRP Group (BRP Group) Business Description
Traded in Other Exchanges
N/A
Address
4211 W. Boy Scout Boulevard, Suite 200, Tampa, FL, USA, 33607
BRP Group Inc is a United States-based insurance distribution firm. Its products include commercial property and casualty, or P&C, insurance, employee benefits insurance and personal lines insurance. The company operates its business through four segments including Middle Market, Specialty, Mainstreet, and Medicare. It generates maximum revenue from the Middle Market segment.
Executives
| Bradford Hale |
officer: Chief Accounting Officer |
4010 W BOY SCOUT BLVD, SUITE 200, TAMPA FL 33607 |
| John A. Valentine |
officer: Chief Partnership Officer |
4010 W. BOY SCOUT BLVD. SUITE 200, TAMPA FL 33607 |
| Laura Sherman |
10 percent owner, other: Member of 10% owner group |
4010 W BOY SCOUT BLVD, SUITE 200, TAMPA FL 33607 |
| Lowry Baldwin |
director, officer: Chairman |
4010 W. BOY SCOUT BLVD. SUITE 200, TAMPA FL 33607 |
| Daniel Galbraith |
officer: Chief Operating Officer |
4010 W. BOY SCOUT BLVD. SUITE 200, TAMPA FL 33607 |
| Trevor Baldwin |
director, officer: Chief Executive Officer |
4010 W. BOY SCOUT BLVD. SUITE 200, TAMPA FL 33607 |
| Kristopher Aaron Wiebeck |
officer: Chief Financial Officer |
4010 W. BOY SCOUT BLVD. SUITE 200, TAMPA FL 33607 |
| Seth Bala Cohen |
officer: General Counsel |
C/O BRP GROUP, INC., 4211 W. BOY SCOUT BLVD., SUITE 800, TAMPA FL 33607 |
| Sathish Muthukrishnan |
director |
601 S. TRYON STREET, CHARLOTTE NC 28202 |
| Baldwin Insurance Group Holdings, Llc |
10 percent owner, other: Member of 10% owner group |
4010 W. BOY SCOUT BLVD. SUITE 200, TAMPA FL 33607 |
| Ellyn Shook |
director |
C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601 |
| Myron K Williams |
director |
C/O BRP GROUP, INC., 4211 W. BOY SCOUT BLVD., SUITE 800, TAMPA FL 33607 |
| Sunita Parasuraman |
director |
C/O BRP GROUP, INC., 4211 W. BOY SCOUT BLVD., SUITE 800, TAMPA FL 33607 |
| Jay A Cohen |
director |
C/O BRP GROUP, INC., 4211 W. BOY SCOUT BLVD., SUITE 800, TAMPA FL 33607 |
| Galloway Corbyn N. |
officer: Chief Accounting Officer |
C/O BRP GROUP, INC., 4211 W. BOY SCOUT BLVD., SUITE 800, TAMPA FL 33607 |
BRP Group (BRP Group) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BRP has been successfully added to your