Brown & Brown Announces 16.3% Increase in First Quarter Net Income

Brown & Brown Inc., with headquarters in Daytona Beach and Tampa, Fla. has announced new records for its net income and net income per share in the first quarter.

Net income per share for the quarter ended March 31 was $0.36, an increase of 16.1 percent over the $0.31 in net income per share reported for the quarter ended March 31, 2005. Net income rose to $50,026,000 for the first quarter of 2006, versus net income of $43,018,000 for the quarter ended March 31, 2005, an increase of 16.3 percent.

Total revenue for the quarter ended March 31 was up 13.9 percent to $230,582,000, compared with $202,374,000 recorded in the corresponding quarter in 2005.

“The wind storm capacity crunch, in coastal areas from Texas to Virginia, is the most severe that I have seen in my 47-year insurance career,” J. Hyatt Brown, chairman and CEO said. “This tumultuous market place, combined with softening property and casualty pricing, outside of wind-prone areas, presents challenges for our customers and our professionals. We are responding positively and aggressively in finding solutions to those needs. That being said, all-in-all we are pleased with the quarter’s results.”

Jim W. Henderson, president and COO added, “Since the beginning of the year, we have completed seven acquisitions with total annualized revenues of approximately $24.6 million, most of which already operate at expected Brown & Brown margin levels. Our operating model continues to attract the best-in-class of acquisition candidates, including small and medium agencies with industry-leading margins. Our success with both small and large agencies has provided Brown & Brown with a unique pipeline of opportunities.”

Topics Profit Loss