Brown & Brown Inc. on Tuesday reported second-quarter revenue of $1.05 billion, up 24.7% compared with the same quarter last year, as insurance rates continued to rise and the brokerage made several acquisitions.
The broker also saw double-digit organic growth of 11.2%.
Organic growth in the retail segment was 6.3%, national programs business grew 23.3% and wholesale brokerage saw 13.1% growth.
Organic growth in the retail segment was driven by “solid” new business, continued rate increases and modest exposure expansion, said J. Powell Brown, president and chief executive officer, on the broker’s Tuesday morning earnings call with analysts.
Brown & Brown’s second-quarter net income of $190.4 million was up 31.1% compared with the prior year period.
Mr. Brown said the insurance market continues to be very challenging for customers, who remain focused on their overall insurance spend and how to best manage their costs. Catastrophe-exposed property remains the most difficult area for buyers, Mr. Brown said.
Rate increases in commercial insurance markets remained similar to recent quarters, Mr. Brown said. Overall, admitted market rates were up 4% to 10% and excess and surplus insurance rates were up 10% to 20% in aggregate during the second quarter.
Brown & Brown completed six acquisitions in the second quarter adding $24 million in combined annual revenue, Mr. Brown said. The level of acquisitions in the market by financial backers has slowed, resulting in fewer bidders and valuations being off “slightly” from earlier peaks.
