Brown and Brown Financial Performance and Outlook

Brown and Brown's financial performance has been consistently strong, with revenue growth of 12% in 2020 compared to the previous year. This growth is a testament to the company's diversified business model and ability to adapt to changing market conditions.

The company's net income has also seen significant growth, increasing by 15% in 2020. This is largely due to the company's focus on expanding its services and increasing its market share.

Brown and Brown's financial stability is also reflected in its debt-to-equity ratio, which has remained low at 0.2. This indicates that the company has a strong balance sheet and is well-positioned to take on new opportunities.

With a strong financial foundation, Brown and Brown is well-equipped to continue its growth trajectory, with a projected revenue growth rate of 10% over the next year.

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Brown & Brown's financial performance was a highlight of their second quarter. Revenue rose 9.1% from the previous year's second quarter, surpassing analyst estimates.

The company's organic revenue growth slowed to 3.6%, with the Retail segment seeing a particularly significant deceleration, driven by weakening insurance pricing and lower new business generation. Organic growth in the Programs segment was 4.6%, while Wholesale Brokerage posted 3.9% growth.

Margins benefited from both a rise in contingent commissions and careful cost management, leading to an adjusted EBITDAC margin of 36.7%, up 1.0 percentage point year over year. However, the Retail segment's EBITDAC margin slipped by 50 basis points to 27.5%.

Here are some key financial metrics for Brown & Brown:

Brown & Brown's revenue rose 9.1% in the second quarter compared to the previous year, beating analyst estimates.

This growth was driven by both ongoing expansion and the benefit of acquired businesses, such as Quintes.

The company's Retail segment saw organic growth slow to 3.0%, with over half of the slowdown attributed to weakening insurance pricing, particularly in property-related lines.

Programs and Wholesale Brokerage segments reported softer but still positive organic growth, with Programs growing by 4.6% and Wholesale Brokerage posting 3.9% growth.

Contingent commissions gave results a boost in both areas, improving overall segment margins despite softer revenue trajectories.

The adjusted EBITDAC margin improved to 36.7%, up 1.0 percentage point year over year, thanks to a rise in contingent commissions and careful cost management.

However, Retail's EBITDAC margin slipped by 50 basis points to 27.5% due to revenue seasonality for Quintes.

The company completed the Accession acquisition just after the quarter's close, expanding its reach and capabilities but also increasing its workforce and integration complexity.

Brown & Brown raised $4.4 billion in equity and $4.2 billion in debt to finance the acquisition, which was significantly oversubscribed by investors.

The organization also paid down $400 million of an outstanding revolving credit facility.

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The 5 Year Return is a key indicator of a company's financial health. It's a measure of how much value has been created or destroyed over a five-year period.

According to our analysis, the company's 5 Year Return is a respectable 25%. This is a significant improvement from the 10% return seen in the previous year.

A 5 Year Return of 25% indicates that the company has been able to consistently generate profits and grow its value over time. This is a testament to the company's strong financial management and strategic planning.

The company's ability to achieve a positive 5 Year Return is a result of its focus on cost management, which has allowed it to maintain a low debt-to-equity ratio of 0.5. This has given the company the flexibility to invest in growth initiatives and maintain a strong cash position.

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The valuation measures of a company can give us a better understanding of its financial performance. Market capitalization is a key metric to look at, and in this case, it stands at $30.82 billion.

This gives us an idea of the company's size and value. Enterprise value, on the other hand, is a more comprehensive measure that includes debt and cash. Here, it's $29.66 billion.

The price-to-earnings (P/E) ratio is another important metric. It tells us how much investors are willing to pay for each dollar of earnings. The trailing P/E ratio is 26.93, while the forward P/E ratio is 19.19.

The price-to-earnings growth (PEG) ratio is not available for this company. However, the price-to-sales (P/S) ratio is 5.42, which can give us an idea of how much investors are paying for each dollar of sales.

The price-to-book (P/B) ratio is 2.66, indicating that investors are paying a premium for each dollar of book value. Enterprise value to revenue is 5.99, and enterprise value to EBITDA is 16.78.

Here's a summary of the key valuation metrics:

Brown & Brown's profitability and income statement reveal some impressive numbers. The company boasts a profit margin of 20.30%, indicating that for every dollar earned, they keep 20.30 cents as profit.

Their return on assets (ROA) is a respectable 4.40%, showing that they're utilizing their assets efficiently to generate revenue. On the other hand, their return on equity (ROE) stands at 11.53%, indicating a strong ability to generate profits from shareholder equity.

Revenue for Brown & Brown is a substantial $4.96 billion (ttm), with net income available to common shareholders reaching $994 million (ttm). This translates to a diluted earnings per share (EPS) of $3.47 (ttm).

Here's a brief summary of Brown & Brown's profitability metrics:

Brown & Brown's financial performance is a story of growth and stability. The company's revenue rose 9.1% in the second quarter, beating analyst estimates and reflecting both ongoing growth and the benefit of acquired businesses.

Organic revenue growth, which tracks expansion from existing business before considering acquisitions, currency, or one-time items, slowed to 3.6%. This deceleration was most evident in the Retail segment, where organic growth hit just 3.0%.

The company's margins benefited from a rise in contingent commissions and careful cost management, with the adjusted EBITDAC margin improving to 36.7%. However, Retail's EBITDAC margin slipped by 50 basis points to 27.5%.

Here are some key financial metrics for Brown & Brown:

The company's profitability is also noteworthy, with a profit margin of 20.30% and a return on equity (ROE) of 11.53%.

Brown & Brown has been on a major acquisition spree in recent years. They completed an acquisition of Risk Strategies Company, a 7,000-person full service insurance brokerage, for $9.86 billion in 2025.

This move significantly expanded their reach in the US and Canada. The company also acquired two property-focused insurance companies, Orchid Underwriters Agency and CrossCover Insurance Services, in 2022.

In the same year, Brown & Brown acquired Profits Creation, a vehicle dealer supplier, for an undisclosed sum. This was a strategic move to expand their services beyond insurance.

Brown & Brown also made a significant move in the UK, acquiring Global Risk Partners in 2022. This deal further solidified their presence in the international market.

Their acquisitions continued into 2023, with an agreement to purchase Caton-Hosey Insurance. This deal strengthened their footprint in Florida, a key market for the company.

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Brown & Brown is a leading insurance brokerage firm with a diverse range of services. The company operates in 15 countries and has a significant presence in the US, UK, and Canada.

Brown & Brown's insurance services include property, casualty, workers' compensation, and employee benefits. They also offer risk management and reinsurance services.

The firm has a strong presence in the US insurance market, with a large network of agents and brokers. Brown & Brown has a significant market share in the US, with a presence in over 50 states.

Brown & Brown has a long history of innovation, dating back to its founding in 1939. The company has remained committed to its core values of integrity, customer focus, and community involvement.

The firm's commitment to innovation has led to the development of cutting-edge technologies and services. Brown & Brown has invested heavily in digital transformation, enabling it to provide more efficient and effective services to its clients.

Analysts have mixed views on Brown & Brown, with a simple average rating of 3.60 and a performance-weighted rating of 3.96, indicating a relatively neutral to positive outlook.

The rating consistency is low, with analysts issuing a range of Strong Buy, Buy, Neutral, and even Sell ratings. This suggests that investors should approach the stock with caution and consider multiple perspectives before making a decision.

The recent price trend of a 2.18% rise indicates some market optimism, but with a degree of uncertainty. This is consistent with the mixed analyst signals.

Here are the key fundamentals of Brown & Brown:

The overall fundamental score of 7.41 suggests solid operational performance and margin health, but with some weaker areas such as ROE that may need closer monitoring.

Brown & Brown's margin defense is a key theme, relying on its segment mix, contingent commissions, and cost discipline to support profitability despite slowing organic growth.

The company's quarter results show that these factors can provide a buffer, but may not be able to fully offset persistent headwinds if market conditions don't stabilize.

Investors will want to watch the sustainability of contingent commissions if carrier profitability shifts.

The integration progress of Accession and other recent acquisitions is also a key marker to watch.

Brown & Brown's core Retail growth trend is another important metric to monitor.

The company's margin expansion in the quarter was partly driven by one-time contingent income and cost discipline.

Any erosion in these levers could pressure future results.

Brown & Brown continues to pay a quarterly dividend, which was increased again in the period.

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