Brown & Brown Reports Q2 Revenue Growth Amid Mixed Organic Performance
Brown & Brown (NYSE:BRO) reported second-quarter revenue growth of 30.4% year-over-year, reaching $1.7 billion, driven by acquisitions and higher contingent commissions. However, organic performance was mixed with a slight decline in overall organic revenue excluding contingent commissions. Adjusted EPS rose to $1.07 from the prior year but adjusted EBITDAC margin fell 100 basis points to 35.7%. The company faces continued pressure on catastrophe-property insurance rates, which declined between 15-35%. In contrast, casualty and professional liability pricing remained stable or improved. Brown & Brown is investing in AI through partnerships with Anthropic, McKinsey, and Accenture, aiming to boost productivity without significantly increasing tech spending. Management expects modest organic growth of 1.5%–2.5% for Retail and 2%–4% for Specialty Distribution in the second half of the year. The company also noted a $18 million adjustment due to litigation involving former employees, with an estimated full-year impact between $50 million and $60 million.
Topics: adjusted_eps ai_investments ebitdac_margin organic_performance revenue_growth