Diversified insurance agency, Brown & Brown Inc. (NYSE: BRO) announced better than expected preliminary fiscal second quarter results on Monday.
For the fiscal second quarter, the Company reported net income of about $52 million or 36 cents a share up from a profit of about nearly $42.5 million or 29 cents a share—which represents a growth of 24.1%.
Total revenue stood at $326 million, an increase of 12% from the same quarter of last year.
Analysts’ consensus forecast was for earnings of 35 cents a share on revenue of $318 million.
Shares edged up about 1.80% in afterhours trading on Monday.
For the six months period ended June 30, the Company posted revenue of about $661 million compared to $593 million, in the same period of last fiscal year, a growth of 11.4%. Net income in the same period climbed 22% to about $112 million or 77 cents a share from nearly $92 million or 63 cents a share.
Commenting over the results, Brown & Brown’s President and Chief executive J. Powell Brown said, “We are very pleased with our quarterly consolidated internal growth rate in core commissions and fees of 7.4%.
Brown pointed out that Company’s largest division, its retail business, continued to show improvements with quarterly internal growth rate in core commissions and fees up 2.3%. Brown attributed this to a gradual but steady improvement in the middle market economy.
Brown also said that other divisions such as National Programs, Wholesales Brokerage and Services each grew at an extraordinary quarterly internal growth rate with fees and commissions up 10.0%.
About Brown & Brown
The Daytona, Florida-based Company provides wide ranging insurance and reinsurance products and services through its subsidiaries.
In addition, some of its subsidiaries offer other services such as risk management, and third part administration.
Business Insurance, a publication, ranked Brown & Brown as the sixth largest independent insurance agency in the United States.
In June 2013, the insurance agency announced that Brown & Brown of New York, Inc., its subsidiary has agreed to acquire asset of The Rollins Agency.
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