Fresh off its subsidiary’s purchase of a builder-linked homeowners’ insurance program, the Tampa-based Baldwin Group took another hit to its bottom line in the third quarter this year. But the brokerage and advisory group expects the loss to turn into a tailwind as it expands its embedded HO business.

“We are now live and facilitating the home insurance process for 20 of the top 25 homebuilders across the country,” CEO Trevor Baldwin said in an earnings call this week. “Our builder partners account for 57% of all new homes built in the U.S. and 93% of the homes built by the top 25 builders in the U.S.”

The Baldwin Group (BWIN on the Nasdaq exchange) posted a $30 million net loss for the third quarter, an improvement over this time last year. Some $18 million of that was attributable to Baldwin and almost $12 million to “noncontrolling interests” from acquisitions of subsidiaries.

It’s the fifth quarterly net loss in the last seven quarterly reports. An analyst with JPMorganChase said the Q3 earnings were below estimates but better than analysts’ consensus had expected.

“Overall, we think BWIN’s guide to high-single-organic growth in 2026 is reasonable, but we are concerned about certain headwinds persisting into 2026, such as softer P&C and employee benefit market conditions,” wrote analyst Pablo Singzon, who listened in to the earnings call, and other JPMorgan analysts. “…We think that there is more risk to the company’s fundamental outlook than previously, given the current macro and P&C backdrop.”

Baldwin in Q3 closed on a deal for its subsidiary, Westwood Insurance Agency, to purchase Hippo Holdings’ homebuilder distribution network. Baldwin purchased Westwood from QBE Insurance Holdings in 2022.

“The reduced commission from QBE that went effective on May 1 on the builder-sourced homeowners book of business we are rolling into our recently formed reciprocal exchange,” known as Builder Reciprocal Insurance Exchange, or BRIE, has had a short-term impact on Baldwin’s financial picture, the CEO said in the earnings call.

“These are temporary headwinds persisting through the first half of 2026, which then reverse into tailwinds as these are not revenues that are lost, just deferred relative to when they will be recognized in our P&L,” Baldwin said.

Lowered premiums for policyholders in some areas also contributed to reduced gains.

“The impact of rate and exposure, or renewal premium change, was a meaningful headwind at minus 5.7%, reflective of the continued client caution tied to macro uncertainty and reduction in large CAT-exposed coastal property pricing, partially offset by ongoing rate action in certain litigation exposed casualty lines of business,” the CEO said.

Baldwin, formerly known as Baldwin Risk Partners, has some 4,200 full-time employees and continues to be one of the largest insurance brokerages, advisory and distribution platforms in the country. Leadership expects the embedded builder insurance business to fuel more growth in the coming months.

“I want to take a minute to talk about the exciting momentum we are seeing across our embedded home insurance businesses,” Baldwin said. “As I mentioned last quarter, in December we launched our new technology platform and digital experience to support the seamless sale of home insurance at point of mortgage origination and home sale.”

He noted that when new homeowners sign up with Baldwin’s “seamless” digital method, the firm binds policies at a rate 3.5 times that seen with a non-digital channels.

The group’s quarterly filing with the U.S. Securities and Exchange Commission can be seen here.

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