Net income for the first quarter of 2014 dipped 12.8% from the prior-year period to $52.4 million despite growth in overall revenue, insurance brokerage Brown & Brown Inc. reported Tuesday.
Revenue grew 8.5% to $363.6 million for the three months ended March 31, Brown & Brown said in a statement. Commissions and fees increased 8.4% to $362.0 million.
Retail revenue jumped 16.0% to $202.8 million, national programs revenue was up 7.7% to $74.2 million and wholesale brokerage revenue grew 12.9% to $55.0 million; however, services revenue dropped 25.8% to $31.6 million, the broker said in the statement.
The company's bottom line took a hit as total expenses grew 17.5% to $276.8 million, with the company saying “such increase primarily related to acquisitions and disposition.” Investment income, at $100,000, was just half that of the year-ago quarter.
“We have started the year with good organic revenue growth and adjusted margin expansion in each of our four divisions, while still operating in a challenging market,” J. Powell Brown, Brown & Brown's president and CEO, said in the statement.