Brown & Brown Inc. announced its net income for the third quarter of 2007 of $46,216,000, or $0.33 per share, an increase of 14.8 percent from the $40,270,000, or $0.29 per share, reported for the quarter ended Sept. 30, 2006. Total revenue for the quarter ended Sept. 30, 2007 was $237,284,000, compared with 2006 third-quarter revenue of $211,965,000, an increase of 11.9 percent.
Total revenue for the nine months ended Sept. 30, 2007 was $742,441,000, compared with revenue of $663,354,000 for the corresponding period in 2006, up 11.9 percent. Net income for the first nine months of 2007 was $157,955,000, versus $134,727,000 during the comparable 2006 period, an increase of 17.2 percent. Net income per share for the nine months ended September 30, 2007 was $1.12, versus the $0.96 per share posted during the same period in 2006, an increase of 16.7 percent.
J. Hyatt Brown, chairman and CEO, noted, “The third quarter was the ‘best of times’ for purchasers of property and casualty insurance across the nation. Risk-bearers continue to reduce prices while expanding the terms and conditions of insurance policies. This market creates substantial challenges for agents and brokers and Brown & Brown is responding as it has in the past by seeking the best prices, terms and conditions for its customers. We are pleased to report a net income per share increase of 13.8 percent for the quarter.”
Jim W. Henderson, vice chairman and chief operating officer, added, “In 2007, we have closed 20 acquisitions representing approximately $81.8 million in annualized revenues. This compares to 13 transactions representing $55.5 million in annualized revenues for the same period in 2006. We believe that the current soft market pricing is a factor in the growing number of agencies exploring alternatives to their perpetuation plans. Additionally, concerns about a possible future, politically driven, capital gains tax rate increase are also a factor in the timing of potential acquisition transactions. Our business model and track record continues to attract the highest quality entrepreneurial agents and brokers.”
Source: Brown & Brown, www.bbinsurance.com
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