Brown & Brown reports higher first-quarter revenue, profit
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Brown & Brown Inc. reported first-quarter revenue rose 12.7% to $1.258 billion as the broker saw 8.6% organic growth during the period.
Net income rose 20.2% to $327 million as investment income more than doubled to $18 million, from $7 million in the year-earlier period, according to the broker’s earnings report, released after markets closed Monday.
Retail segment revenue rose 10% to $806 million, with 7.2% organic growth. Programs segment revenue increased 16.9% to $298 million, with 11.8% organic growth.
Wholesale brokerage revenue rose 15.4% to $142 million, with 10.8% organic growth.
The broker completed six acquisitions in the first quarter, with estimated annual revenue of $16 million, J. Powell Brown, chairman, president and CEO of the Daytona Beach, Florida-based brokerage, told analysts on an earnings call Tuesday morning.
Mr. Brown said that “overall changes in rates for most lines were relatively consistent with the fourth quarter of last year.”
Primary and excess casualty markets are both beginning to see upward rate pressure that could accelerate “due to ongoing levels of inflation” in legal judgments, he said.
Catastrophe-exposed property rates are seeing downward pressure and were off as much as 10% in the first quarter, Mr. Brown said, while pricing for workers compensation in most states was down 5% to 10%.
