![]() Yahoo finance Insurance brokers' reason for existence Over the same 10-year period, Brown & Brown stock outperformed the S&P 500 and all its large competitors with a 5.2x return before dividends (figure 5). Over the last 10 years from 2012 to 2022, Brown & Brown's revenue and earnings have grown steadily (figure 3) - its revenue and EBITDA have tripled, while its net income and free cash flow have quadrupled figure 4).Ĭreated by author using publicly available financialsįigure 4: Brown & Brown 10-year growth (indexed to March 31, 2012)Ĭreated by author using publicly available financials Stock price In the same 28-year period, we increased net income from $8.1 million to $587.1 million in 2021, a compound annual growth rate of 16.5%." Our revenues grew from $95.6 million in 1993 to $3.1 billion in 2021, reflecting a compound annual growth rate of 13.2%. " increased revenues every year from 1993 to 2021, with the exception of 2009, when revenues declined 1.0%. ( AJG) (figure 2).įigure 2: Leading insurance brokers in the US in 2020, by brokerage revenue (in $'billions)Īccording to Brown & Brown's 2021 10-K filing: (4) Services Segment (6%) provides insurance-related services, including third-party claims administration and comprehensive medical utilization management services in both the workers' compensation and all-lines liability arenas, as well as Medicare Set-aside services, Social Security disability and Medicare benefits advocacy services, and claims adjusting services.įigure 1: Breakdown of Brown & Brown's segments by revenue in 2021īrown & Brown is one of the 5 largest insurance br okers in the US behind Marsh & McLennan ( MMC), Aon PLC ( AON), Willis Towers Watson PLC ( WTW), and Arthur J. ![]() ![]() (3) Wholesale Brokerage Segment (13%) markets and sells excess and surplus commercial insurance, primarily through independent agents and brokers, including Brown & Brown Retail offices and (2) National Programs Segment (23%), acting as a managing general agent, provides professional liability and related packaged products for a range of individuals (e.g., flood coverage), targeted products and services designated for specific industries (e.g., auto repair shops, dry cleaning, forestry), trade groups (e.g., dental, legal, medical malpractice), governmental entities (e.g., schools and municipalities) and market niches, which are delivered through nationwide networks of independent agents and Brown & Brown retail agents (1) Retail Segment (58% of 2021 sales) provides a broad range of insurance products and services to commercial, public, and quasi-public entities, professional and individual customers ( NYSE: BRO) is a diversified insurance agency, wholesale brokerage, and insurance programs and services organization that markets and sells insurance products and services to its customers, primarily in the property, casualty, and employee benefits areas.īrown & Brown's business is divided into four reportable segments (figure 1): Mohamad Faizal Bin Ramli/iStock via Getty Images Overviewīrown & Brown, Inc.
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