Baldwin Insurance Group Inc
For the period ended Dec 31, 2024. Filed Feb 25, 2025.
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FY2024 · Filed Feb 25, 2025
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9. Intangible Assets, Net and Goodwill
- Intangible Assets, Net and Goodwill
Intangible assets consist of the following:
| December 31, 2024 | December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| (in thousands) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value |
| Acquired relationships(1) | $1,136,326 | $(259,125) | $877,201 | $1,135,834 | $(186,487) | $949,347 |
| Software(2) | 138,119 | (65,190) | 72,929 | 99,733 | (46,543) | 53,190 |
| Trade names | 27,924 | (24,562) | 3,362 | 27,924 | (13,118) | 14,806 |
| Total intangible assets | $1,302,369 | $(348,877) | $953,492 | $1,263,491 | $(246,148) | $1,017,343 |
(1)Acquired relationships exclude $20.7 million of gross carrying value and $9.4 million of accumulated amortization classified as held for sale at December 31, 2023
(2)At December 31, 2024 and 2023, capitalized software had a gross carrying value of $66.9 million and $28.5 million, respectively, and accumulated amortization of $10.3 million and $1.4 million, respectively.
The Company had asset acquisitions during each of the years ended December 31, 2024 and 2023, which resulted in the addition of acquired relationships of $0.5 million and $3.5 million, respectively, each with estimated weighted-average useful lives of 15 years.
Amortization expense recorded for intangible assets was $102.7 million, $92.7 million and $81.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense recorded for capitalized software, which is included as a component of intangible assets amortization, was $8.9 million and $1.4 million for the years ended December 31, 2024 and 2023, respectively.
Future annual estimated amortization expense over the next five years for intangible assets is as follows (in thousands):
| For the Years Ending December 31, | Amortization |
|---|---|
| 2025 | $99,475 |
| 2026 | 96,372 |
| 2027 | 81,834 |
| 2028 | 70,613 |
| 2029 | 65,711 |
The changes in carrying value of goodwill by operating group are as follows:
| (in thousands) | Insurance Advisory Solutions | Underwriting, Capacity & Technology Solutions | Mainstreet Insurance Solutions | Total |
|---|---|---|---|---|
| Balance at December 31, 2022(1) | $932,487 | $245,069 | $244,504 | $1,422,060 |
| Goodwill classified as held for sale(2) | — | (9,480) | — | (9,480) |
| Measurement period adjustments(3) | — | — | (211) | (211) |
| Balance at December 31, 2024 and 2023 | $932,487 | $235,589 | $244,293 | $1,412,369 |
(1) Beginning balances were recast to account for goodwill related to the Company’s FounderShield Partner, which moved from the Underwriting, Capacity & Technology Solutions operating group to the Insurance Advisory Solutions operating group. Refer to Note 1 for additional information.
(2) Refer to Note 3 for additional information regarding goodwill classified as held for sale.
(3) Measurement period adjustments recorded during 2023 relating to businesses acquired in 2022 decreased current liabilities by $0.2 million.
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