Brown & Brown, Inc.

What they do

The company markets and sells property, casualty and employee benefits insurance primarily as an agent or broker, earning commissions from insurers and fees from customers. It also runs ancillary underwriting operations including captives, segregated cell companies and Wright National Flood Insurance Company, a write-your-own NFIP flood carrier. Following the RSC/Accession acquisition in Q3 2025, it reports two segments: Retail and Specialty Distribution. As of December 31, 2025, it operated 468 domestic locations in 47 states and 246 international locations across 14 countries and Hong Kong.

Revenue drivers

• Retail segment — Provides insurance products and services to commercial, public, quasi-public, professional and individual customers, plus F&I warranty services through auto and RV dealer businesses; earns commissions and fees.
• Specialty Distribution segment — Consolidates the former Programs and Wholesale Brokerage segments; includes MGUs serving specific industries and niche markets, wholesale brokerage placing excess and surplus lines through independent agents, and specialty businesses in affinity, captives, reinsurance, travel/accident, warranty and life & health.
• Fee revenues — Generated mainly by Specialty Distribution for policy issuance on behalf of carriers, and by Retail in large-account, F&I and Medicare-related services; represented 22.2% of total commissions and fees in 2025 and 21.1% in 2024.
• Profit-sharing contingent commissions — Commissions based primarily on underwriting results, estimated and accrued through the year and typically received in the first and second quarters; averaged approximately 4.4% of commissions and fees over the last three years.

Recent performance

For Q2 2026, total revenues were $1.7 billion, up 30.4% year over year, but Organic Revenue decreased 0.7% and Organic Revenue with Contingents increased 0.7%. Income before income taxes was $383 million, up 23.2%, with a 22.9% margin versus 24.2% a year earlier. Net income attributable to the Company was $288 million, up 24.7%, and diluted net income per share was $0.84, up 7.7%, with adjusted diluted EPS of $1.07. For the six months ended June 30, 2026, total revenues were $3.6 billion, up 33.0%, with Organic Revenue down 0.3% and Organic Revenue with Contingents up 1.6%. Full-year 2025 revenue was $5.90 billion with net income of $1.05 billion.

Strategy

The company has grown revenue every year from 1993 to 2025 except 2009, reaching $5.9 billion in 2025 from $95.6 million in 1993, a 14.2% compound annual growth rate. Growth has historically come from new business, customer retention and acquisitions, supported by a decentralized sales and service culture. The Q3 2025 RSC/Accession Risk Management Group acquisition drove a segment reorganization from three segments to two, consolidating Programs and Wholesale Brokerage into Specialty Distribution. Acquisitions remain a visible contributor, adding $393 million of commissions and fees in Q2 2026 and $829 million in the first half. The company also participates in captive insurance facilities to add placement capacity, generate revenue and participate in underwriting results while limiting claims exposure through reinsurance.

Risks

• Acquisition-driven growth masking organic weakness — Q2 2026 commissions and fees grew 32.4% largely from acquisitions while Organic Revenue declined 0.7%.
• Dependence on carrier premium rates and exposure units — Commission revenue fluctuates with premium rate levels set by insurers and with customers' insurable exposure units, such as property values, sales and payroll, none of which the company controls.
• Contingent commission estimation risk — Profit-sharing contingent commissions are accrued based on estimates and may differ from amounts ultimately received because of limited visibility into loss information.
• Underwriting and catastrophe exposure in ancillary operations — Captives, segregated cell companies and the Wright National Flood Insurance Company carrier expose the company to underwriting risk and catastrophic weather events, though it uses reinsurance and limited tranche participation to reduce exposure.

Outlook

Management did not provide specific numerical guidance in the excerpts. CEO J. Powell Brown said the company is pleased with second quarter results and has great momentum heading into the back half of the year. Reported results show continued double-digit revenue growth driven by acquisitions, while organic growth was slightly negative in Q2 2026.