Today's Viewpoint: A MarshBerry Publication

Brown & Brown, Inc. Q2 2022 Earnings Report

Brown & Brown, Inc. reported second quarter 2022 results this morning, with an adjusted Earnings Per Share of $0.51, total revenue of just under $840M, and total revenue growth of 15.5%.

Brown & Brown, Inc. (BRO) reported second quarter 2022 results this morning, with an adjusted Earnings Per Share (EPS) of $0.51, a 4.1% increase, and total revenue of $840M with growth of 15.5%. Here are five things you should know about this call:

BRO Earnings Report Highlights

  1. BRO reported strong organic growth of 10.3% in 2Q22, with Retail reporting 9%, National Programs reporting 19%, and Wholesale Brokerage reporting 7%. For most lines of business, organic revenue growth was realized due to new business, rate increases and unit expansion.
  1. Strong merger & acquisition (M&A) performance over the quarter was expressed with eight acquisitions completed, representing annual revenue of approximately $11M. The pipeline continues to be strong, as they are currently engaging with many prospects and have already completed two deals in the current quarter.
  1. Even with high variable costs, adjusted EBITDAC (Earnings Before Interest, Taxes, Depreciation, Amortization & Change) margin for the quarter grew faster than revenue, expanding to 32.7%, an increase of 30 basis points compared to 2Q21, resulting in a net income increase of 6%.
  1. From a rate perspective, BRO anticipates year-over-year premium rate increases will remain relatively constant through end of year, comparable to those in 2Q22, dependent on potential losses from hurricane season.
  1. CEO J. Powell Brown said he believes economic growth will continue to moderate towards more normal levels as federal funds rate increases, continued inflation, supply chain constraints, and the geopolitical climate cause uncertainty, cooling the economy. Continuing to write new business and look for additional business that can grow and expand their capabilities are tactics BRO cites as a plan for increasing organic growth during this time of economic uncertainty.

To learn more about Brown & Brown Q2 2022 Earnings, visit: Brown & Brown Q2 2022 News Release

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This earnings summary has been prepared by Marsh, Berry & Co., LLC. and is not intended to provide investment recommendations on any company. It is not a research report, as such term is defined by applicable laws and regulations, and it does not contain sufficient information upon which to make an investment decision. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy. These materials are based solely on information contained in publicly available documents and Marsh, Berry & Co., LLC has not independently attempted to investigate or to verify such information.

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