Key Takeaways Brown & Brown has completed 702 acquisitions since 1993.The company exited Q2 2025 with $8.9B in cash, over 13 times higher than 2024-end.ROE of 15.1% and ROIC of 7.2% trail peers, signaling weaker use of shareholder funds.Brown & Brown, Inc. (BRO) has been trading below its 50-day simple moving average (SMA), signaling a short-term bearish trend.  The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as th ...

Core Insights - Brown & Brown, Inc. has appointed Joia M. Johnson to its board of directors, bringing extensive experience from her previous roles at Hanesbrands Inc. and RARE Hospitality International, Inc. [1][2] Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm established in 1939, with over 700 locations and a workforce of more than 23,000 professionals [4]. Leadership and Governance - H. Palmer Proctor, Jr., lead independent director, highlighted Johnson's ability to navigate complexity and her experience on various publicly traded boards [2]. - J. Powell Brown, CEO, emphasized that Johnson's unique experience will significantly impact the board and support the company's growth strategy [2]. Joia M. Johnson's Background - Johnson served as Hanes' chief administrative officer from 2016 to 2021 and held multiple leadership roles from 2007 to 2021 [2]. - Prior to her tenure at Hanes, she was executive vice president and general counsel at RARE Hospitality International, Inc. from 2001 to 2007 [2]. Board Memberships - Johnson currently serves on the boards of Global Payments Inc., Sylvamo Corporation, and Regions Financial Corp., holding various committee memberships [3].

DAYTONA BEACH, Fla., Aug. 12, 2025 (GLOBE NEWSWIRE) -- J. Scott Penny, chief acquisitions officer of Brown & Brown, Inc. (NYSE:BRO), and Mark N. Otto, the owner of Tire Shield, Inc. (“Tire Shield”), today announced that Brown & Brown Dealer Services (“BBDS”) has acquired the assets of Tire Shield. Founded in 1997, Tire Shield offers administrative services for dealers and agents providing tire and wheel road hazard products and GAP waiver products for the RV, Automotive and Power Sports Industries. The Tire ...

DAYTONA BEACH, Fla., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE:BRO) today announced the completion of the previously announced acquisition of RSC Topco, Inc. (“RSC” or “Accession”), the holding company for Accession Risk Management Group, Inc. Brown & Brown, Inc. is a leading insurance brokerage firm delivering comprehensive and customized insurance solutions and specialization since 1939. With a global presence spanning 700+ locations and a team of more than 23,000 professionals, followin ...

Brown & Brown (BRO) has been beaten down lately with too much selling pressure. While the stock has lost 15.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of pr ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Key Takeaways BRO posted Q2 adjusted EPS of $1.03, beating estimates and rising 10.8% year over year.Revenue rose 9.1% to $1.3B, led by 7.7% commission and fees growth and 3.6% organic revenue gain.Adjusted EBITDAC rose 12.1% to $471M with margin up 100 bps, despite a 17.1% rise in expenses.Brown & Brown, Inc.’s (BRO) second-quarter 2025 adjusted earnings of 1.03 per share beat the Zacks Consensus Estimate by 4%. The bottom line increased 10.8% year over year.The quarterly results reflected improved organic ...

Financial Data and Key Metrics Changes - The company reported total revenues of $1.3 billion for the second quarter, representing a growth of 9.1% year-over-year and 3.6% organically [7] - Adjusted EBITDAC margin improved by 100 basis points to 36.7%, and adjusted earnings per share grew over 10% to $1.03 [7][19] - Income before income taxes increased by 13.6%, and EBITDAC grew by 12.1% [18] Business Line Data and Key Metrics Changes - The Retail segment grew total revenues by 7.9% with organic growth of 3%, impacted by slowing admitted and cat property rates [20] - The Programs segment delivered organic growth of 4.6%, with total revenues increasing by 6.1% driven by higher contingent commissions [21] - The Wholesale Brokerage segment had total revenues increasing by 14.5% and organic growth of 3.9%, with EBITDAC margin increasing by 80 basis points to 34.1% [22] Market Data and Key Metrics Changes - Insurance pricing rates for most lines moderated further in the second quarter, with notable exceptions in auto, casualty, and cat property [9][10] - Rates in the admitted P&C market continued to moderate, with increases of 1% to 5% compared to the prior year [10] - The E&S property market saw rates down 15% to 30%, indicating a general softening trend [12] Company Strategy and Development Direction - The company is focused on integrating the acquisition of RSC Topco (Ascession) and plans to remain active in the M&A space [4][27] - The company aims to deploy capital in a disciplined manner to ensure long-term growth and profitability [28] - A new division called Specialty Distribution will be formed by combining the Programs and Wholesale segments [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting that customers are delaying investment decisions but are generally confident [8][26] - The company expects admitted rates to continue to moderate in the second half of the year, with cat property rates likely to decrease further [27] - Management remains positive about the integration of Ascession and the potential for future growth [28] Other Important Information - The company completed 15 acquisitions with estimated annual revenues of $22 million during the quarter [7] - Cash flow from operations increased by $164 million year-over-year to $537 million [23] - The company successfully issued $4.4 billion in equity and $4.2 billion in debt to support the acquisition [24] Q&A Session Summary Question: Retail organic growth fluctuations - Management noted that over half the discrepancy in retail growth was due to downward pressure on rates and lower new business [31][32] Question: Growth in contingent commissions - Management indicated that overall profitability for carriers is up, contributing to strong growth in contingent commissions [35][36] Question: Financials of Ascession and integration expenses - Management confirmed that revenue and expense synergies from the Ascession acquisition are expected to be realized over the next three and a half years [41][44] Question: Impact of lower new business on growth - Management stated that the lower new business was simply a result of not writing as much new business this quarter, not indicative of a trend [72][74] Question: E&S pricing and competition - Management acknowledged that some admitted markets are taking back business, but it is not significant enough to impact overall performance [76][78] Question: Margin expectations for acquired businesses - Management indicated that it typically takes 12 to 36 months to achieve target margins for acquired entities, depending on the business [86][87] Question: Organic growth drivers - Management reiterated that organic growth is influenced by both economic growth and pricing, with a historical split of approximately two-thirds economic growth and one-third pricing [91][97]

Financial Data and Key Metrics Changes - The company reported total revenues of $1.3 billion for the second quarter, representing a growth of 9.1% year-over-year and 3.6% organically [6][17] - Adjusted EBITDAC margin improved by 100 basis points to 36.7%, and adjusted earnings per share grew over 10% to $1.03 [6][18] - Income before income taxes increased by 13.6%, and EBITDAC grew by 12.1% [17] Business Line Data and Key Metrics Changes - The Retail segment grew total revenues by 7.9% with organic growth of 3%, impacted by slowing admitted and cat property rates [19] - The Programs segment delivered organic growth of 4.6%, with total revenues increasing by 6.1% driven by higher contingent commissions [20] - The Wholesale Brokerage segment had total revenues increasing by 14.5% and organic growth of 3.9%, with EBITDAC margin increasing by 80 basis points to 34.1% [21] Market Data and Key Metrics Changes - Insurance pricing rates for most lines moderated further in the second quarter, with notable exceptions in auto, casualty, and cat property [8][9] - Rates in the admitted P&C market continued to moderate, with increases of 1% to 5% compared to the prior year [9] - The E&S property market saw rates down 15% to 30%, indicating continued pressure on rates [11] Company Strategy and Development Direction - The company is focused on integrating the acquisition of RSC Topco (Ascession) and plans to remain active in the M&A space [4][25] - The company aims to deploy capital in a disciplined manner to ensure long-term growth and profitability [27] - A new division called Specialty Distribution will be formed by combining the Programs and Wholesale segments starting in the third quarter [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting that customers are generally investing in their businesses despite some delays in decision-making [7][24] - The company expects admitted rates to continue to moderate in the second half of the year, with cat property rates likely to decrease further [25] - Management remains confident in the company's ability to grow and deliver profitable results, with a strong cash flow conversion [27] Other Important Information - The company completed 15 acquisitions with estimated annual revenues of $22 million during the quarter [6] - Cash flow from operations increased by $164 million year-over-year to $537 million [22] - The company successfully issued $4.4 billion in equity and $4.2 billion in debt to support the acquisition [22] Q&A Session Summary Question: Retail organic growth fluctuations - Management noted that over half the discrepancy in retail organic growth was due to downward pressure on rates and lower new business [30][31] Question: Growth in contingent commissions - Management indicated that overall profitability for carriers is up, contributing to strong growth in contingent commissions [33][34] Question: Financials of Ascension Strategies - Management confirmed that revenue and expense synergies from the acquisition are expected to be realized over the next three and a half years [40][41] Question: Impact of lower new business - Management clarified that the lower new business was not indicative of a market trend but rather a temporary fluctuation [72][74] Question: E&S pricing and competition - Management acknowledged that some admitted markets are regaining business but emphasized that it is not significant enough to impact overall performance [76][78] Question: Margin expectations for acquired businesses - Management stated that it typically takes 12 to 36 months to achieve targeted margins for acquired businesses, depending on the specific business [85][86] Question: Economic growth and pricing impact on organic growth - Management indicated that organic growth is influenced by both economic growth and pricing, with a historical split of approximately two-thirds from economic growth and one-third from pricing [90][92]

Financial Performance - Total revenue reached $1.285 billion, reflecting a 9.1% increase compared to $1.178 billion in the second quarter of 2024[23] - Organic revenue grew by 3.6%, reaching $1.162 billion compared to $1.122 billion in the same period last year[16, 23] - Adjusted EBITDAC increased by 12.1% to $471 million, up from $420 million in the second quarter of 2024[23] - Adjusted EBITDAC margin improved by 100 basis points to 36.7%[16, 23] - Adjusted diluted net income per share increased by 10.8% to $1.03, compared to $0.93 in the prior year[16, 23] Segment Performance - Retail segment organic revenue grew by 3.0%[20] - Programs segment organic revenue increased by 4.6%[21] - Wholesale Brokerage segment experienced an organic revenue growth of 3.9%[22] Market Overview and Strategic Initiatives - The company closed 15 transactions in M&A during the quarter[18] - The acquisition of Accession is on track to close on August 1st[41]