Brown & Brown Q2 Earnings Beat Estimates, Commission and Fees Up Y/Y

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]