Brown & Brown provides risk management and insurance solutions to businesses and individuals through its Retail and Specialty Distribution segments. The company works by acting as an intermediary to identify specific risks and connect customers with tailored insurance policies that protect their assets. Unlike many competitors, it combines the scale of a large global brokerage with a decentralized culture that emphasizes local community involvement and a team-based approach to service. Its goal is to provide superior risk protection and long-term security for customers by consistently prioritizing their best interests.
Company Size
5,001-10,000
Company Stage
IPO
Headquarters
Leeds, United Kingdom
Founded
1914
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Health Insurance
Dental Insurance
Vision Insurance
Life Insurance
Disability Insurance
401(k) Retirement Plan
401(k) Company Match
Student Loan Assistance
Tuition Reimbursement
Mental Health Support
Unlimited Paid Time Off
Paid Vacation
Paid Holidays
Brown & Brown (NYSE: BRO), an insurance broker, faces pressure as falling catastrophe-property rates cut commissions. First-half 2026 organic revenue fell 0.3%, though it rose 1.6% when contingent commissions from insurers are included. Contingent commissions, which depend largely on insurers' underwriting profits, have cushioned the decline. The company's Specialty Distribution division shrank 3.5% in the second quarter, while Retail grew 1.5%. The August 2025 acquisition of RSC Topco, Inc. lifted reported revenue 30.4%. Quarterly interest expense rose to $100 million from $51 million, and diluted shares increased to 334 million from 293 million. The stock trades at about 13x forward earnings, against 20x trailing. Rival Arthur J. Gallagher & Co. trades at about 16x, with faster expected earnings growth.
Brown & Brown shares are trading at a discount to the insurance brokerage industry, with a forward price-to-earnings ratio of 15.04X versus the industry average of 16.51X. The company has a market capitalisation of $23.96 billion. The stock has gained 27.4% over the past three months, outperforming the industry's 22.4% growth. Analysts' average price target of $76.44 suggests a potential 7.6% upside from recent levels. The Zacks Consensus Estimate projects 2026 earnings per share to increase 5.6% year-over-year, with revenues reaching $7.04 billion, up 19.2%. Growth is supported by increasing new business, strong client retention, and strategic acquisitions. The company's recent Accession acquisition contributed approximately $410 million to second-quarter 2026 revenues, with expected synergies of $30-$40 million in 2026.
Five insurance brokers stocks reported largely satisfactory Q2 earnings, with revenues beating analyst consensus estimates by 0.8% overall. Share prices have held steady, rising 2.1% on average since results were released. Brown & Brown reported revenues of $1.68 billion, up 30.4% year on year. However, this figure fell short of analyst expectations by 2.5%. Despite scoring the fastest revenue growth amongst peers, it had the weakest performance against analyst estimates. The stock has risen 2.7% since reporting and currently trades at $71.60. Ryan Specialty delivered the strongest Q2 performance, reporting revenues of $916.6 million, up 7.2% year on year and outperforming analyst expectations by 5.3%. The insurance brokerage industry benefits from rising risk complexity and regulatory scrutiny, though faces challenges from labour intensity and wage inflation.
Brown & Brown reported second quarter 2026 results that missed revenue expectations but showed strong year-on-year growth. Revenue rose 30.4% to $1.68 billion, below the $1.72 billion analyst estimate. Management attributed performance to strong contingent commissions, effective acquisition integration, and improved sales processes. CEO J. Powell Brown said the company's enhanced sales model is building momentum with aligned teams generating new business wins. Operating margin declined year-over-year to 22.9% from 24.2%, though the company made progress controlling expenses. Adjusted EBITDA of $611 million beat analyst estimates of $603.1 million. During the earnings call, analysts questioned MGA competition impacts, European expansion plans, and technology investment costs. Management stressed disciplined underwriting and confirmed synergy targets remain unchanged.
Brown & Brown reported Q2 2026 results with revenue of $1.676 billion and net income of $288 million. The insurance broker's shares closed at $70.40, posting a 22.16% gain over 90 days but down 9.30% year-to-date and 23.00% over one year. Valuation models suggest a fair value of $75.63, indicating the stock is 6.9% undervalued. The company's diversified portfolio across geographies and business lines supports earnings stability. However, the price-to-earnings ratio of 19.8x exceeds both the US insurance industry average of 12.1x and the stock's fair ratio of 12.5x. Risks include rising pharmacy costs in benefits and potential Florida legislative changes that could pressure margins.