Brown & Brown saw first-quarter 2026 total revenues climb 35.4% to US$1.9 billion, but the insurance brokerage's record results were almost entirely powered by acquisitions, with organic revenue flat year over year.
Organic Revenue with Contingents rose just 2.2%, the company said in its filing for the period ended March 31. Acquisitions contributed US$435 million to the top line.
Income before income taxes rose 24.8% to US$533 million, though the margin narrowed to 28.0% from 30.4% a year earlier. Adjusted EBITDAC grew 36.6% to US$731 million, with the margin edging up to 38.5% from 38.1%.
Net income attributable to the company reached US$426 million, up 28.7%. Diluted net income per share fell 7.8% to US$1.06, while adjusted diluted EPS rose 7.8% to US$1.39. The adjusted figure reflects US$0.26 in amortisation, US$0.06 in acquisition and integration costs, and US$0.01 in earn-out adjustments.
Commissions and fees totalled US$1.88 billion, up from US$1.385 billion. Core commissions and fees, excluding US$97 million in contingents, stood at US$1.783 billion. Organic Revenue held at US$1.348 billion.
The acquisition contribution was anchored by Brown & Brown's US$9.8 billion takeover of Accession Risk Management Group, parent of Risk Strategies and One80 Intermediaries.
Announced in mid-2025 and completed on August 1 that year, the deal extended the firm's footprint to more than 700 locations and 23,000 staff. Risk Strategies was folded into the Retail segment, while One80 anchors a new Specialty Distribution unit.
Markets were unmoved. Shares slipped about 2.4% following the release. Analysts at StockStory said Brown & Brown beat earnings-per-share estimates but missed on organic revenue, while Quiver Quantitative flagged that Q1 revenue came in slightly below the US$1.93 billion consensus.
The flat organic print is conspicuous against larger rivals. Marsh McLennan reported underlying revenue growth of 4% in the first quarter, with consolidated revenue up 8%.
Earlier research from Reagan Consulting had already pointed to four consecutive quarters of decelerating broker organic growth, attributing the slide to softening commercial property rates.
Marsh's own Q1 pricing data showed global commercial insurance rates down 5%, led by a 9% drop in property, even as US excess casualty climbed 18%. MarshBerry chief executive John Wepler has argued that slowing organic growth amplifies the case for acquisition – a dynamic Brown & Brown is leaning into.
President and chief executive J. Powell Brown (pictured above) said the company's "teammates continue to deliver for our customers in a challenging growth environment" – a remark that carries weight as peers continue to post mid-single-digit organic gains.
