BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Brown & Brown reports revenue growth


Brown & Brown Inc. reported second-quarter revenue of $446.5 million, up 6.5%, from the year-ago period, despite continued pressure on rates.

Net income increased 8.5% to $66.2 million, the Daytona Beach, Florida-based brokerage said in its earnings report, released Monday.

“We would characterize the second quarter as another quarter that is moderating upward, but inconsistency in the middle market does remain,” President and CEO J. Powell Brown said in prepared remarks during a conference call Tuesday. “These inconsistencies can be seen in certain geographies or industries or a combination of both. During the quarter, our customers continued with modest hiring and exposure units are increasing.”

Mr. Brown also said rates for the admitted market remain under pressure and generally flat or down 5%. Property rates remain under most pressure with coastal properties placed in the excess and surplus market continuing to see steepest declines at 10% to 25% down.

“We have a number of programs performing well,” he said. “We have a number of programs that continue to face material headwinds, such as property and auto programs that are being impacted by either declines in pricing or changes in risk bearer appetites or a combination of both.”

During the quarter, Brown & Brown said it grew its retail revenue by 6.3% to $230.5 million, its national programs by 2.7% to $104.2 million, and its wholesale brokerage 9.7% to $59.1 million. Services revenue increased 13.6% to $41.7 million.

Mr. Brown said the broker had acquired two companies, adding that “we remain vigilant in finding organizations that fit culturally and transactions that make sense financially.” He said the acquisition of Morstan General Agency Inc. in Manhasset, New York, “positions Brown & Brown as one of the leading wholesale brokers in the tri-state area” of New York, New Jersey and Connecticut.

Organic revenue increased 2.6% to $10.6 million in the quarter.

“Similar to previous quarters,” Mr. Brown said in his remarks, “management of health care costs remains front and center for our customers. As small employers are generally experiencing rate increases of 8% to 12%, while larger employers are seeing rates that are generally flat to up slightly. While these rate increases in small employer groups do not have a direct impact on revenues, as many of those carriers have moved to a per-employee, per-month compensation model, it does drive plan design.”

Revenues for the six months ended June 30 totaled $870.7 million, up 5.7%, compared with the same period of 2015, with organic revenue increasing by 2%. Net income was $128.3 million, up 8.7%.

Read Next