Macroeconomic ChallengesManagement highlighted tougher macro and pricing environment in the middle market brokerage segment, with pricing being a real headwind in property-heavy sectors.
Revenue Growth ChallengesThe company’s near-term challenge of switching to the reciprocal exchange should continue to be a drag on consolidated organic growth and adjusted EPS through the first half of 2026 before potentially becoming a tailwind in the second half.
Revenue HeadwindsSeveral factors—including deteriorating property rate/exposure trends, a procedural change in the timing of IAS revenue recognition, elevated churn for Medicare renewals, and competitive pressure for E&S homeowners—are expected to create a roughly 6% organic headwind in the second half.