Core Viewpoint - Brown & Brown, Inc. has acquired the assets of Tire Shield, enhancing its service offerings in the automotive and RV industries [1][2][3] Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm established in 1939, with over 700 locations and more than 23,000 professionals globally [3] - Tire Shield, founded in 1997, provides administrative services for tire and wheel road hazard products and GAP waiver products [2] Acquisition Details - The acquisition allows Brown & Brown Dealer Services to expand its offerings to include GAP waiver administration services alongside vehicle service contract administration services [3] - The Tire Shield team will continue operations from Las Vegas, Nevada, reporting to William Kelly, president of BBDS's administrative services [2] Leadership Statements - Mike Neal, president of BBDS, expressed excitement about the acquisition, highlighting the potential for growth and service enhancement [3] - Mark Otto, owner of Tire Shield, emphasized the new opportunities for innovation and customer service that the acquisition brings [3]

Core Viewpoint - Brown & Brown, Inc. has successfully completed the acquisition of RSC Topco, Inc., enhancing its capabilities in the insurance brokerage sector [1]. Company Overview - Brown & Brown, Inc. is a prominent insurance brokerage firm with a history dating back to 1939, providing comprehensive and customized insurance solutions [2]. - The company operates over 700 locations globally and employs more than 23,000 professionals [2]. - Following the acquisition of Accession, Brown & Brown aims to deliver scalable and innovative strategies to support customer growth [2].

Brown & Brown Inc BRO reported upbeat earnings for the second quarter after the closing bell on Monday. The company posted quarterly earnings of $1.03 per share which beat the analyst consensus estimate of 99 cents per share. The company reported quarterly sales of $1.285 billion which beat the analyst consensus estimate of $1.277 billion. Brown & Brown shares rose 1% to trade at $92.85 on Wednesday. These analysts made changes to their price targets on Brown & Brown following earnings announcement. Conside ...

Core Viewpoint - Brown & Brown (BRO) has experienced significant selling pressure, resulting in a 15.6% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating a stock is oversold [2] - BRO's current RSI reading of 18.44 suggests that the heavy selling may be exhausting, indicating a possible rebound towards previous supply and demand equilibrium [5] Group 2: Fundamental Analysis - There is a strong consensus among sell-side analysts to raise earnings estimates for BRO, with a 0.2% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6] - BRO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to the author's positions and affiliations [1][2]. Group 1 - No stock, option, or similar derivative positions are held by the author in any mentioned companies, nor are there plans to initiate such positions in the next 72 hours [1]. - The article expresses the author's personal opinions and is not compensated for the content, aside from Seeking Alpha [1]. - Seeking Alpha clarifies that past performance does not guarantee future results and that no investment recommendations are provided [2].

Core Insights - Brown & Brown, Inc. (BRO) reported adjusted earnings of $1.03 per share for Q2 2025, exceeding the Zacks Consensus Estimate by 4% and reflecting a year-over-year increase of 10.8% [1][9] - The company's total revenues reached $1.3 billion, surpassing the Zacks Consensus Estimate by 0.7% and showing a 9.1% year-over-year growth, primarily driven by a 7.7% increase in commission and fees [2][9] - Adjusted EBITDAC rose to $471 million, a 12.1% increase year over year, with EBITDAC margin expanding by 100 basis points to 36.7% [3][9] Revenue and Earnings Details - Commission and fees totaled $1.2 billion, growing 7.7% year over year, while organic revenues improved by 3.6% to $1.2 billion [2][9] - Investment income increased to $36 million, significantly above the Zacks Consensus Estimate of $18.6 million [3] Expense and Financial Update - Total expenses rose by 17.1% year over year to $974 million, driven by higher employee compensation and other operating costs [4] - As of June 30, 2025, the company had cash and cash equivalents of $8.9 billion, a more than 13-fold increase from the end of 2024, while long-term debt increased by 107.5% to $7.5 billion [5] Dividend Information - The board of directors approved a quarterly cash dividend of 15 cents per share, scheduled for payment on August 20, 2025 [6] Industry Performance Comparison - First American Financial (FAF) reported operating income per share of $1.53 for Q2 2025, beating estimates by 9.3% and showing a 20.5% year-over-year increase [8] - Chubb Limited (CB) reported core operating income of $6.14 per share, exceeding estimates by 4.2% with a 14.1% year-over-year increase [11] - Kinsale Capital Group (KNSL) delivered net operating earnings of $4.78 per share, surpassing estimates by 8.4% and reflecting a 27.5% year-over-year increase [12]

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]

Core Insights - Brown & Brown (BRO) reported $1.29 billion in revenue for the quarter ended June 2025, a year-over-year increase of 9.1% and an EPS of $1.03 compared to $0.93 a year ago, exceeding Zacks Consensus Estimates [1] - The reported revenue was a surprise of +0.69% over the consensus estimate of $1.28 billion, while the EPS surprise was +4.04% over the consensus estimate of $0.99 [1] Financial Performance Metrics - Total organic growth was 3.6%, below the estimated 5.7% by five analysts [4] - Revenues from commissions and fees were $1.25 billion, slightly below the average estimate of $1.26 billion, representing an 8.2% year-over-year increase [4] - Investment income reached $35 million, significantly above the estimated $18.51 million, marking a 59.1% year-over-year increase [4] - Core commissions and fees totaled $1.2 billion, slightly below the average estimate of $1.22 billion, with a year-over-year change of 7.7% [4] - Profit-sharing contingent commissions were $45 million, exceeding the estimated $41.21 million, reflecting a 25% year-over-year increase [4] - Core commissions and fees from programs were $344 million, below the average estimate of $351.83 million, with a year-over-year change of 4.9% [4] - Core commissions and fees from retail were $687 million, slightly below the estimate of $695.13 million, showing an 8% year-over-year increase [4] - Core commissions and fees from wholesale brokerage were $173 million, above the average estimate of $165.56 million, representing a 12.3% year-over-year increase [4] - Total revenues from other sources were $25 million, significantly above the estimated $9.75 million [4] - Total revenues from wholesale brokerage were $182 million, exceeding the average estimate of $172.12 million [4] - Total revenues from programs were $381 million, slightly below the average estimate of $385.14 million [4] - Total revenues from retail were $697 million, compared to the average estimate of $711.35 million [4] Stock Performance - Shares of Brown & Brown have returned -5.7% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]