Brown & Brown reports 11% revenue growth
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Brown & Brown Inc. reported first-quarter revenue of $404.3 million, up 11.2% over the first quarter of 2014 amid a 3.8% organic growth rate.
The brokerage’s commissions and fees grew 11.5% to $403.8 million as investment income doubled to $200,000.
Net income increased 7.9% to $56.9 million while total expenses rose 12.2% to $310.6 million for the quarter.
The brokerage’s retail segment grew 6.2% to $218.3 million with 1.6% organic growth, Chief Financial Officer R. Andrew Watts said Tuesday during the company’s earnings call.
Coastal property insurance rates, Mr. Watts said, remain under pressure and are off 10% to 20% or more.
Pressed by analysts for a future growth estimate, Mr. Watts declined, but did say, “We have said that the retail business is a low- to mid-single-digit growth business.”
Brown & Brown’s wholesale brokerage business saw revenue increase 3.6% with 7.3% organic growth, with the differential due to the sale of the
Axiomreinsurance business.
In response to analysts’ questions about acquisitions, President and CEO J. Powell Brown said while there continue to be opportunities, pricing currently is “aggressive.”
“While there are a lot of potential transactions, some are willing to pay amounts we won’t,” Mr. Brown said in referring to traditional brokerages as well as private equity players.
Brown & Brown is the world’s sixth-largest insurance broker, according to Business Insurance’s latest ranking.
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