Brown & Brown Q3 Earnings Top Estimates on Higher Revenues

Core Insights - Brown & Brown, Inc. (BRO) reported third-quarter 2024 adjusted earnings of 91 cents per share, exceeding the Zacks Consensus Estimate by 4.6% and reflecting a year-over-year increase of 28.2% [1] - Total revenues reached $1.2 billion, surpassing the Zacks Consensus Estimate by 2.2% and showing an 11% year-over-year improvement, primarily driven by a 10.4% increase in commission and fees [2] - Investment income surged 82.3% year over year to $31 million, significantly exceeding both the Zacks Consensus Estimate and internal estimates [3] Financial Performance - Adjusted EBITDAC was reported at $414 million, an 11.9% increase year over year, with EBITDAC margin expanding by 30 basis points to 34.9% [3] - Total expenses rose by 0.8% to $869 million, attributed to increased employee compensation, operating expenses, and interest [4] - Cash and cash equivalents at the end of Q3 stood at $2.7 billion, a 17.3% increase from the end of 2023, while long-term debt rose to $3.4 billion, up 4.3% [5] Dividend and Shareholder Returns - The board of directors declared a regular cash dividend of $111 million during the reported quarter [6] Industry Context - Peer companies such as Marsh & McLennan and Aon also reported positive earnings, with Aon showing a 26% year-over-year revenue increase, indicating a robust industry performance [8][10]