Brown & Brown Inc. reported fourth-quarter revenue of $1.03 billion, a 13.8% increase compared with the year-earlier period, while net income soared 85% to $268.6 million.

Commissions and fees increased by 12.4%, and investment income more than tripled to $18.5 million. Organic revenue growth was 7.7% for the quarter.

For the full year, Brown & Brown reported record revenue of $4.26 billion, up 19.1% from 2022. Organic growth for 2023 was 10.2%, while commissions and fees increased 17.9%.

Brown & Brown had “an outstanding quarter, capping an incredible year,” J. Powell Brown, chairman, president and CEO of the Daytona Beach, Florida-based brokerage, said on an earnings call with analysts Tuesday. The brokerage posted its quarterly results late Monday after markets closed.

After crossing its intermediate annual revenue goal of $4 billion, the company is targeting its next goal of $8 billion, Mr. Brown said.

Results were boosted by meaningful new business, strong retention and rate increases, Mr. Brown said.

Brown & Brown continued to grow through acquisitions, completing 13 deals in the fourth quarter, adding total annual revenue of $109 million, Mr. Brown said.

Brown & Brown said it has reorganized its business to operate under three main segments of retail, national programs and wholesale going forward.

Retail grew organically by 8.2% in the fourth quarter, national programs by 5.4% and wholesale by 14.5%.

The brokerage recorded a one-time $19 million charge in the quarter related to a changing reinsurance policy for one of its captives, which decreased its organic growth by approximately nine percentage points in programs, Mr. Brown said.

The change is expected to drive incremental organic growth in 2024, Chief Financial Officer Andrew Watts said during the call.

The services segment saw organic revenue decline by 5.9% and will no longer operate as a standalone business following the sale of various companies in the quarter.

The brokerage completed the sale of four third-party administrator companies to London-based claims management company Davies Group Ltd. in the quarter. It recorded a gain on disposal of approximately $135 million related to the sale, Mr. Watts said.

Rate increases in the insurance market were similar to the third quarter, with mid-market rates up 5% to 10% for most lines and rate decreases in workers compensation in most states, Mr. Brown said.

“Placement for cat property and excess liability continue to be difficult with rates for property up 10% to 30% and liability flat to up 10%,” Mr. Brown said, adding that there was “some moderation” in the rate of increase in cat property, mainly in London markets.

In addition to rate increases, it's also challenging to find desired limits, Mr. Brown said.

“Buyers are exhausted with the level of premium increases. Customers continued to either reduce limits or participate in certain layers in order to manage their premium increases in December,” Mr. Brown said.

Professional liability and cyber coverage continue to soften compared with last year, with rates for professional liability up 5% to down 20%, he said.

The overall economic sentiment of customers is “cautiously optimistic,” Mr. Brown said. “Our customers continue to invest in their businesses and hire employees, although the level of investment is not as high as a year ago,” he said.

For the full year the retail segment grew 7.9% organically; national programs 17.2% and wholesale brokerage 12.2%.

Brown & Brown completed 33 acquisitions in 2023, representing combined annual revenue of $162 million, expanding its footprint in North America and Europe. The acquisition of London-based brokerage and managing general agent Kentro Capital Ltd. was the largest, Mr. Brown said.