Florida-based insurance agency Brown & Brown, Inc. reported that its total commissions and fees revenues for the third quarter of 2008 increased 8.1 percent over the third quarter of 2007.
While revenues were up, net income for the quarter was down.
Net income for the third quarter of 2008 was $40,593,000, or $0.29 per share, compared with $46,216,000, or $0.33 per share for the same quarter of 2007.
Total revenues for the third quarter ended September 30, 2008 were $247,029,000, compared with 2007 third-quarter revenue of $237,284,000.
Total revenues for the nine months ended September 30, 2008 were $745,464,000, compared with the total revenues for the first nine months of 2007 of $742,441,000.
J. Hyatt Brown, chairman and chief executive officer, said his firm is pleased with the third quarter results given the fact that the property/casualty insurance industry continues to stare into the “abyss of falling rates.”
He remains optimistic despite current economic conditions. “The joker in the deck on a forward-looking basis is the economy,” Brown said. “Notwithstanding the course of recent events, we remain optimistic about the future.”
The company also remains busy in acquiring agencies. Jim W. Henderson, vice chairman and chief operating officer, said that since the second quarter of 2008, the firm closed on 14 transactions, representing $22.4 million in estimated annualized revenues.
For the year, Brown & Brown has closed 44 transactions with estimated annualized revenues of $100.2 million.
“Soft market conditions and a challenging economy are factors prompting a favorable increase in merger and acquisitions activity,” said Henderson.
Source: Brown & Brown, Inc.