Brown & Brown Attains New Level of Record Earnings

Florida-based Brown & Brown, Inc. announced record quarterly earnings for the third quarter of 2003 of $26,051,000 compared with $20,178,000 recorded in the third quarter of 2002, an increase of 29.1 percent.

Net income per share rose 31.0 percent to $0.38 per share, compared with $0.29 per share in the third quarter of last year. Total revenue for the quarter ended Sept. 30, 2003 was up 20.7 percent to $133,545,000, compared with the revenue of $110,657,000 for the same quarter in 2002.

Total revenue for the nine months ended Sept. 30, 2003 was $416,139,000, compared with revenue for the same period in 2002 of $336,595,000, up 23.6 percent. Net income for the nine months ended Sept. 30, 2003 was $84,521,000, or $1.23 per share, compared with the $61,741,000, or $0.91 per share, posted during the same period last year. This represents an increase of 35.2 percent in per share earnings.

Jim Henderson, president and COO, noted, “Part of our corporate history is the successful acquisition of agencies in various stages of the insurance pricing cycle. In the third quarter, we acquired three operations: Canfield and Associates, Inc.; Washington Insurance Services, Inc.; and The Hoffman Company. More recently, we have experienced an increase in the number of agencies that have expressed an interest in joining Brown & Brown. We believe that this activity is in part due to the current moderation of insurance pricing and the shrinkage of market access due to downgrades and dislocations of risk bearers. We will continue to identify the best opportunities and invest in those evidencing sustainable earnings growth and high quality people.”