Brown & Brown Notes Record Levels in 2003 Results

January 20, 2004

Florida-based Brown & Brown, Inc. announced record earnings for 2003, the 11th consecutive year the company has hit record highs in both revenues and income.

Net income for 2003 rose to $110,322,000, or $1.60 per share, an increase of 32.7 percent over the $83,122,000, or $1.22 per share earned in 2002. Total revenues for the year rose to $551,040,000, up 20.9 percent compared with $455,742,000 attained in 2002.

During the fourth quarter of 2003 net income increased to $25,800,000, or $0.37 per share, compared with 2002 fourth quarter net income of $21,380,000 or $0.31 per share, a 20.7 percent increase. Total revenues for the fourth quarter of 2003 was $134,901,000, a 13.2 percent increase over 2002 fourth quarter revenues of $119,147,000.

J. Hyatt Brown, chairman and CEO, said of the results, “Year 2003 was a continuation of our commitment made eleven years ago to grow earnings per share 15 percent or more, ad infinitum. The actual 2003 earnings per share growth of 31.1 percent is very pleasing to all of the Brown & Brown team who have performed so well in a changing market. Our operating margin (income before income taxes and minority interest with interest expense and amortization expense added back) grew positively from 33.7 percent in 2002 to 35.9 percent in 2003. We are very focused on our intermediate term goal of B-40 – $1 billion dollars of revenues and a 40 percent operating profit margin. We view 2004 as another step toward reaching that goal.”

Jim Henderson, president and COO noted, “We are seeing stronger real interest in the acquisition and merger arena than we saw in early 2003. As we move into 2004, more and more entrepreneurs seem to be recognizing the value of joining forces with larger, stronger partners, like Brown & Brown, and are more inclined to pull the trigger.”

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