Group 1 - Brown & Brown, Inc. (NYSE:BRO) is recognized as one of the 15 Best Passive Income Stocks to Buy Right Now [1] - Goldman Sachs has reduced the price target for Brown & Brown from $105 to $90 while maintaining a Neutral rating, citing ongoing pressure on the company's organic growth trend [2] - On October 22, Brown & Brown announced a 10% increase in its quarterly dividend to $0.165 per share, marking the 32nd consecutive year of dividend growth, and approved an additional $1.25 billion stock repurchase authorization [3] Group 2 - Brown & Brown has established a wide national network of brokers through targeted acquisitions and organic growth, with a fee-based model that generates recurring revenue from policy renewals, contributing to its long dividend history [4]

Core Insights - Brown & Brown, Inc. operates in the competitive insurance brokerage industry, alongside peers such as Arthur J. Gallagher & Co. and W. R. Berkley Corporation, with a focus on evaluating Return on Invested Capital (ROIC) against Weighted Average Cost of Capital (WACC) [1] Company Performance - Brown & Brown's ROIC is 4.89%, which is lower than its WACC of 7.00%, resulting in a ROIC to WACC ratio of 0.70, indicating insufficient returns above its cost of capital [2][6] - Arthur J. Gallagher & Co. has a ROIC of 5.29% and a WACC of 6.24%, leading to a ROIC to WACC ratio of 0.85, which also suggests challenges in capital utilization [3] - W. R. Berkley Corporation demonstrates a strong ROIC of 55.96% against a WACC of 5.35%, yielding a ROIC to WACC ratio of 10.46, indicating effective capital management [4][6] - RenaissanceRe Holdings Ltd. leads the industry with a ROIC of 131.46% and a WACC of 4.79%, resulting in a remarkable ROIC to WACC ratio of 27.47, showcasing exceptional capital efficiency [5][6]

Core Points - Brown & Brown, Inc. has been recognized as a 2026 Military Friendly® Employer for the second consecutive year and has also received a Silver 2026 Military Friendly® Award [1][2] - The recognition reflects the company's commitment to veterans and their families, emphasizing the value of the service, discipline, and resilience that veterans bring to the organization [2][3] - The Military Friendly® designation is based on evaluations from public data sources and proprietary surveys, with over 1,200 companies participating [4][5] Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm established in 1939, offering comprehensive and customized insurance solutions [7] - The company operates globally with over 700 locations and a workforce of more than 23,000 professionals [7] - Brown & Brown aims to deliver scalable and innovative strategies for customers throughout their growth journey [7] Recognition Details - The Military Friendly® Employers designation is determined through a combination of survey scores and assessments of recruitment, retention, turnover, and promotion of veterans [5] - Brown & Brown will be featured in the 2026 Military Friendly® Employers Guide in the Winter issue of G.I. Jobs® magazine and on MilitaryFriendly.com [6]

Core Insights - Brown & Brown, Inc. has appointed Jessica Getman and Joe Siech as Retail Senior Leaders to enhance strategic priorities and operations within the Retail segment [1][2][3] Group 1: Leadership Appointments - Jessica Getman and Joe Siech will play crucial roles in scaling operations, fostering innovation, and investing in team development [2] - Their leadership is expected to unlock new opportunities for performance and reinforce the company's commitment to delivering exceptional value [2][3] Group 2: Leadership Background - Jessica Getman leads Brown & Brown offices in the Pacific Northwest and contributes to strategic initiatives [3] - Joe Siech has over 30 years of experience in the insurance industry, leading large complex commercial teams and excelling in national sales leadership [3] Group 3: Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm with over 700 locations and a workforce of more than 23,000 professionals [4] - The company has been delivering customized insurance solutions since 1939, focusing on scalable and innovative strategies for customer growth [4]

Core Insights - Brown & Brown Inc. (NYSE:BRO) is a prominent player in the insurance brokerage industry, offering a wide range of insurance products and services, including risk management and consulting, and competes with major firms like Marsh & McLennan and Aon [1] Financial Performance - For the third quarter of 2025, Brown & Brown reported revenue of $1.61 billion, reflecting a 35.4% increase year-over-year, surpassing the Zacks Consensus Estimate of $1.51 billion by 6.61% [3][7] - The company's earnings per share (EPS) for the quarter were $1.05, up from $0.91 in the same period last year, exceeding the consensus EPS estimate of $0.90 by 16.67% [4][7] Operational Efficiency and Shareholder Initiatives - Despite higher expenses, Brown & Brown's EBITDAC margin expanded, indicating improved operational efficiency [5] - In response to strong financial results, the board approved a 10% increase in dividends and initiated a new $1.25 billion share repurchase program, demonstrating a commitment to enhancing shareholder value [5][7] Stock Performance - Currently, BRO's stock is trading at $78.57, with a market capitalization of approximately $26.83 billion, having experienced a 52-week high of $125.68 and a low of $76.96 [6]

Core Insights - Wright National Flood Insurance Company has completed the acquisition of Poulton Associates, LLC, enhancing its insurance operations [1] Company Overview - Wright Flood is the largest flood insurance provider in the United States, offering federal, excess, and private flood insurance, rated A (Excellent) by AM Best [2] - The company serves approximately 4.7 million flood policyholders and is recognized for its user-friendly technology and exceptional claims reputation [2] Parent Company Information - Brown & Brown, Inc. is a leading insurance brokerage firm with over 700 locations and more than 23,000 professionals, providing customized insurance solutions since 1939 [4]

Core Insights - The article highlights seven insurance stocks to watch, including United Parcel Service, Berkshire Hathaway, Wells Fargo & Company, Progressive, Arthur J. Gallagher & Co., Brown & Brown, and Everest Group, based on their high trading volumes recently [2] Group 1: Company Profiles - United Parcel Service (UPS) is a package delivery company that offers a range of services including transportation, delivery, distribution, and insurance, operating through U.S. Domestic Package and International Package segments [3] - Berkshire Hathaway Inc. engages in insurance, freight rail transportation, and utility businesses, providing various insurance products and operating railroad systems in North America [4] - Wells Fargo & Company is a diversified financial services company offering banking, insurance, investments, and mortgage services, operating through multiple segments including Consumer Banking and Lending, and Corporate and Investment Banking [5] - Progressive Corporation provides personal and commercial auto and property insurance products, operating in three segments: Personal Lines, Commercial Lines, and Property [6] - Arthur J. Gallagher & Co. offers insurance brokerage and consulting services, operating through Brokerage, Risk Management, and Corporate segments [6] - Brown & Brown, Inc. is an insurance agency and brokerage firm providing various insurance services, operating through Retail, National Programs, Wholesale Brokerage, and Services segments [7] - Everest Group, Ltd. provides reinsurance and insurance products globally, operating through Insurance and Reinsurance segments [7]

Core Insights - Brown & Brown (BRO) reported a revenue of $1.61 billion for the quarter ended September 2025, reflecting a year-over-year increase of 35.4% [1] - The earnings per share (EPS) for the quarter was $1.05, up from $0.91 in the same quarter last year, indicating a strong performance [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.51 billion by 6.61%, and the EPS also surpassed the consensus estimate of $0.90 by 16.67% [1] Financial Performance Metrics - Total organic growth was recorded at 3.5%, slightly below the estimated 4% by analysts [4] - Revenues from commissions and fees reached $1.55 billion, exceeding the average estimate of $1.47 billion, with a year-over-year increase of 34.2% [4] - Investment income was reported at $56 million, significantly higher than the estimated $32.98 million, marking an 80.7% increase compared to the previous year [4] - Other revenues totaled $42 million, surpassing the average estimate of $26.15 million, and showing a remarkable year-over-year growth of 100% [4] - Retail commissions and fees amounted to $877 million, compared to the average estimate of $835.95 million [4] - Income before income taxes from other segments was reported at -$108 million, worse than the average estimate of -$74.7 million [4] - Retail income before income taxes was $164 million, slightly below the average estimate of $169.55 million [4] Stock Performance - Over the past month, shares of Brown & Brown have returned -5.7%, contrasting with the Zacks S&P 500 composite's increase of 3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Brown & Brown, Inc. (BRO) reported third-quarter 2025 adjusted earnings of $1.05 per share, exceeding the Zacks Consensus Estimate by 16.6% and reflecting a year-over-year increase of 15.4% [1][9] - Total revenues reached $1.6 billion, surpassing the Zacks Consensus Estimate by 6.6% and showing a year-over-year growth of 35.4% [2][9] - The growth in revenue was primarily driven by a 34.2% increase in commission and fees, which amounted to $1.5 billion, along with higher investment and other income [2][9] Revenue and Income Details - Organic revenues improved by 3.5% to $1.2 billion during the quarter [2] - Investment and other income surged by 80.6% year over year to $56 million, significantly above the estimate of $36.4 million [3] - Adjusted EBITDAC rose to $587 million, marking a 41.8% increase year over year, with the EBITDAC margin expanding by 170 basis points to 36.6% [3] Expense Overview - Total expenses increased by 49% to $1.3 billion, driven by higher employee compensation, operating expenses, and interest [4] Financial Position - As of September 30, 2025, Brown & Brown had cash and cash equivalents of $1.2 billion, a 76.2% increase from the end of 2024 [5] - Long-term debt stood at $7.6 billion, more than double the level at the end of 2024 [5] - Net cash provided by operating activities for the first nine months of 2025 was $1 billion, reflecting a year-over-year increase of 23.7% [5] Capital Deployment - The board declared a 10% increase in the quarterly dividend to 16.5 cents per share, marking the 32nd consecutive annual dividend increase [6] - An additional share repurchase authorization of up to $1.25 billion was approved, bringing the total authorization to approximately $1.5 billion [7]

Financial Data and Key Metrics Changes - The company reported total revenues of $1.6 billion for the third quarter, representing a growth of 35.4% year-over-year and 3.5% organic growth [6][15] - Adjusted EBITDA margin improved by 170 basis points to 36.6%, and adjusted earnings per share increased over 15% to $1.05 [6][15] - Income before income taxes rose by 34%, and EBITDA grew by 41.8% [15] Business Line Data and Key Metrics Changes - The Retail segment achieved total revenue growth of 37.8%, with organic growth at 2.7% [16] - Specialty distribution segment grew total revenues by 30%, with organic growth of 4.6% [18] - The impact of acquisitions, particularly AssuredPartners, contributed significantly to revenue growth, with AssuredPartners generating approximately $285 million in total revenue for the stub period [14][16] Market Data and Key Metrics Changes - Commercial insurance pricing remained stable, with rates for most lines similar to the previous quarter [7][8] - Medical costs increased by 6% to 8%, while pharmacy costs rose over 10% [7] - Workers' compensation rates were flat to down 3%, and casualty rates saw increases of 5% to 10% [8][9] Company Strategy and Development Direction - The company aims to enhance its solutions and value to customers through leadership changes and strategic acquisitions [4][5] - The Board of Directors raised the dividend by 10% and expanded share repurchase authorization to $1.5 billion, indicating a focus on shareholder value [5] - The company is actively pursuing M&A opportunities that align culturally and financially, with a strong pipeline domestically and internationally [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic growth remaining stable, with decreasing interest rates and a growing customer base [23] - The company anticipates similar pricing trends in the admitted market and expects continued upward pressure on casualty lines [24] - Management noted that the organic growth for retail is expected to remain stable, with potential headwinds from employee benefits incentives [16][39] Other Important Information - The company generated $1 billion in cash flow from operations in the first nine months of 2025, a 24% increase compared to the same period in 2024 [20] - The effective tax rate for the quarter was 24.7%, consistent with the prior year [16] - The company expects Q4 revenues for AssuredPartners to be in the range of $430 to $450 million [21] Q&A Session Summary Question: Relationship of organic growth to EBITDA margins - Management clarified that organic growth is just one component of margin drivers and should not be directly correlated with margins [29][30] Question: Impact of government shutdown on business - Management acknowledged some businesses are impacted, particularly in specialty and retail segments, but expect revenue to catch up over time [31][32] Question: Retail organic growth impact - Management explained the 1% impact on organic growth was due to adjustments in employee benefits incentives [35][36] Question: Future of admitted vs. E&S market - Management indicated that while there may be some movement from E&S back to admitted markets, the E&S market continues to grow [42] Question: Property renewal rates outlook - Management expects property renewal rates to remain similar, with potential for some markets to become more aggressive at year-end [53][54] Question: Technology investments - Management discussed ongoing investments in technology to enhance customer experience and operational efficiency [81][82]