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Member, Beacon International Group, Ltd.
DAYTONA BEACH, Fla.—Brown & Brown Inc. said heavy property/ casualty losses among insurers eroded its commissions in the second quarter, resulting in a 10% drop in the broker’s profit compared with a year ago.
Brown & Brown’s net income in the second quarter was $37 million, a decrease of 10.1% from the Daytona Beach, Fla.-based broker’s second-quarter 2010 income of $41.2 million.
Total revenue for the second quarter, which ended June 30, was $246.8 million, a 1.3% increase from its second-quarter revenue a year earlier.
Commissions
In a statement Monday, Brown & Brown President and CEO J. Powell Brown said the brokerage had shed approximately $4.2 million in profit-sharing contingency commissions.
“This is largely a reflection of rising loss ratios of property and casualty insurance carriers across the U.S.,” Mr. Brown said in the statement. However, he said he was pleased with the performance of other segments of the company’s business, “most notably the second consecutive quarter of positive internal revenue growth in our wholesale brokerage division.”
After the announcement, Brown & Brown’s stock opened Tuesday down 58 cents, or 2.4%, from the previous day’s close.
Brown & Brown of New York Inc., a unit of Daytona Beach, Fla.-based Brown & Brown Inc., announced Thursday that had acquired substantially all of the assets of Farmington, N.Y.-based Fitzharris Agency, Inc., Fitzharris & Co. Inc., and Fitzharris Administrators, Inc., which collectively do business as Fitzharris Insurance.