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Brown & Brown Inc. posted first-quarter revenue of $904.7 million, up 11% year over year, with organic revenue growth of 7.8%, the broker reported late Monday after the markets closed.
First-quarter net income rose 10.3% to $220.3 million, and commissions and fees rose 11% to $904.3 million.
The retail segment had organic growth of 8.9%; the national programs segment grew 6.1% organically, and the wholesale segment saw organic growth of 11.3%. The brokers services segment had negative organic revenue growth of 6.2% on fewer weather-related claims.
Brown & Brown completed two acquisitions in the quarter, with combined annual revenue of $165 million, J. Powell Brown, president and CEO, said during the broker’s Tuesday morning earnings call.
The segment increases were driven by new business, good retention and rate increases, he said.
Admitted market rate increases were “similar” to prior quarters and averaged 3% to 7% across most lines, while excess and surplus markets saw increases of 10% to 20% on average, Mr. Brown said on the call.
Customers “continue to modify deductibles and limits to best manage premium rate increases,” he said, adding that inflation has also made insurable values a concern for clients as prices and replacement costs have increased “materially.”
Amid the rate increases, clients must also cope with “increased underwriting rigor” for both cyber liability coverage and customers with high losses, Mr. Brown said.
Looking forward, Mr. Brown said the broker anticipates “rate increases will remain relatively constant for the next few quarters,” and that excess and surplus markets should be consistent with the first quarter.
General economic conditions are expected to moderate going forward, Mr. Brown said. “We believe economic growth will continue to return to more normal levels,” he said.