Intangible Assets, Net and Goodwill
Intangible assets consist of the following:
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| | December 31, 2025 | | December 31, 2024 |
| (in thousands) | | Gross Carrying Value | | Accumulated Amortization | | Net Carrying Value | | Gross Carrying Value | | Accumulated Amortization | | Net Carrying Value |
| Acquired relationships | | $ | 1,253,396 | | | $ | (344,992) | | | $ | 908,404 | | | $ | 1,136,326 | | | $ | (259,125) | | | $ | 877,201 | |
| Software | | 163,514 | | | (95,547) | | | 67,967 | | | 138,119 | | | (65,190) | | | 72,929 | |
| Trade names | | 28,474 | | | (26,411) | | | 2,063 | | | 27,924 | | | (24,562) | | | 3,362 | |
| Total intangible assets | | $ | 1,445,384 | | | $ | (466,950) | | | $ | 978,434 | | | $ | 1,302,369 | | | $ | (348,877) | | | $ | 953,492 | |
Amortization expense recorded for intangible assets was $121.3 million, $102.7 million and $92.7 million for the years ended December 31, 2025, 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 |
| 2026 | | $ | 126,061 | |
| 2027 | | 108,232 | |
| 2028 | | 90,334 | |
| 2029 | | 79,422 | |
| 2030 | | 72,271 | |
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, 2023 and 2024 | | $ | 932,487 | | | $ | 235,589 | | | $ | 244,293 | | | $ | 1,412,369 | |
| Goodwill of acquired businesses | | — | | | 6,316 | | | 98,486 | | | 104,802 | |
| Balance at December 31, 2025 | | $ | 932,487 | | | $ | 241,905 | | | $ | 342,779 | | | $ | 1,517,171 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.