Brokerage Brown & Brown rises to double-digit organic growth in Q2

Insurance brokerage  Brown & Brown enjoyed a 15.5 percent rise in second quarter total revenues to $838.7 million, including a 10.3 percent increase in organic revenues adjusted for acquisitions and profit-sharing commissions.

The organic revenue growth, which included 8.8 percent growth in retail, a heady 19 percent growth in national programs and 7 percent in wholesale brokerage, combined to nearly double the 5.7 percent organic growth anticipated in one of the consensus estimate calculations circulated on the market.

The group's preferred profit measure of adjusted EBITDAC rose 17 percent to $274.4 million, rendering a fractional 0.3 percentage point gain in adjusted EBITDAC margin to 32.7 percent.

Margin gains focused on the national programs segment, up in excess of 4 percentage points (pps) to a group-leading 44.4 percent. Elsewhere, margins slipped. Adjusted EBITDAC proved most fragile in the wholesale brokerage segment, down 1.6 pps to 32.5 percent. The retail segment suffered a half point decline in adjusted EBITDAC margins to 28.3 percent.

CEO J. Powell Brown (pictured) noted: “We had an exceptional quarter growing 10.3 percent organically and profitably. We also completed our acquisition of GRP on July 1.”

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