Insurance broker Brown & Brown has reported its unaudited financial results for the second quarter of 2023 and announced a new acquisition.
The broker’s Q2 results showed significant growth and strong performance. Revenues for the quarter reached $1,047.3 million, marking a 24.7% increase compared to the same period in the previous year. Commissions and fees rose by 23.5%, while organic revenue saw an 11.2% increase, the company said. Income before income taxes reached $254.4 million, rising by 28% from the previous year, with an income-before-income-taxes margin of 24.3%.
The company's EBITDAC – adjusted stood at $358.4 million, a substantial 30.5% increase compared to the second quarter of the previous year, resulting in an EBITDAC margin – adjusted of 34.2%. Net income also saw significant growth, reaching $190.4 million, a 31.1% increase, with diluted net income per share rising to $0.67, or 31.4%. Diluted net income per share – adjusted increased to $0.68, or 33.3%, compared to the same period in the prior year.
For the six months ended June 30, the company reported revenues of $2,163.3 million, marking a 24% increase compared to the same period in 2022. Commissions and fees saw a rise of 23%, while organic revenue increased by 11.9%. Income before income taxes reached $548.6 million, showing an 18.3% increase, with an income-before-income-taxes margin of 25.4%.
EBITDAC – adjusted for the six months stood at $756.6 million, a significant 26.5% increase, leading to an EBITDAC margin – adjusted of 35.0%. Net income reached $425.9 million, a 16.5% increase, with diluted net income per share rising to $1.50, or 16.3%. Diluted net income per share – adjusted increased to $1.52, or 18.8%, compared to the same period in 2022.
“We delivered another outstanding quarter of strong and profitable growth,” said J. Powell Brown, president and CEO of Brown & Brown. “This performance capped off a great first half of the year with significant momentum going into the second half.”
Brown & Brown also announced that its subsidiary, Bridge Specialty Group, is set to acquire the assets of New England Excess Exchange (NEEE), a wholesale MGA providing commercial and personal lines insurance for independent retail brokers throughout the New England, Tri-State, and Mid-Atlantic regions.
The acquisition is expected to close in August, subject to certain closing conditions.
“We are excited to welcome the New England Excess team to Bridge Specialty Group,” said Steve Boyd, president of Bridge Specialty Group. “The legacy of providing innovative insurance solutions to their retail broker partners is aligned with our strategy and meaningfully expands our capabilities and footprint in the Northeast. This will allow us to further forge key partnerships and collectively unlock new business opportunities.”
Brown & Brown also recently acquired Highcourt Partners Limited.
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