Brown & Brown Reports Dip in Profits, Continued Interest in Acquisitions

Florida-based insurance agency Brown & Brown, Inc. and its subsidiaries reported a profitable 2009 and fourth quarter despite a drop in revenues.

Net income for the fourth quarter of 2009 was $23,653,000, compared to $33,373,000 for the same quarter of 2008. Total revenue for the fourth quarter ended Dec. 31, 2009 was $214,162,000, compared to $232,090,000 for the same quarter in 2008.

Total revenue for the 12 months ended Dec. 31, 2009 was $967,877,000, compared to total revenue for the 12 months ended Dec. 31, 2008 of $977,554,000. Net income for 2009 was $153,294,000; for 2008 it was $166,124,000.

“In 2009 we faced three strong headwinds — decreasing insurance rates, adverse economic conditions, and a soft merger and acquisition environment. Yet, in spite of these challenges, we became more efficient, added exceptional new talent and maintained the quality of service our clients expect and deserve,” said J. Powell Brown, president and CEO.

According to Jim W. Henderson, vice chairman and chief operating officer, since Dec. 31 the company has closed three deals worth $10.5 million of annualized revenues and it has more in the pipeline.

“In recent months, we have experienced an increase in merger and acquisition deal flow and we are encouraged by the quality of the opportunities and the depth of discussions. This is a great time in the market cycle to put our cash to work for our shareholders through investment in quality acquisition opportunities,” Henderson said.

Source: Brown & Brown