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Brown & Brown (BRO) Q4 Earnings & Revenues Top, Rise Y/Y
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Brown & Brown (BRO - Free Report) reported adjusted fourth-quarter 2021 earnings of 42 cents per share, which came ahead of the Zacks Consensus Estimate by 10.5% as well as the year-ago figure by 31.2%.
The results reflect improved organic growth, margin expansion and higher commissions and fees, partly offset by increased expenses.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Adjusted revenues of $739 million beat the Zacks Consensus Estimate by 1.5%. Moreover, the top line rose 15.1% year over year on higher commissions and fees. Organic revenues increased 9% in the reported quarter.
Commissions and fees grew 15.3% year over year to $737.9 million.
Investment income however plunged 80% year over year to $0.2 million.
Total expenses increased 16.9% to $597.7 million due to a rise in employee compensation and benefits, amortization, depreciation as well as other operating expenses.
EBITDAC was $215.7 million, up 24% year over year. EBITDAC margin expanded 210 basis points (bps) to 29.2%.
Full-Year Update
Full-year 2021 adjusted income of $2.19 per share beat the Zacks Consensus Estimate of $2.16. The bottom line increased 31.1% year over year.
Total revenues increased 16.7% from the year-ago quarter to $3.05 billion and beat the Zacks Consensus Estimate of $3.04 billion.
EBITDAC was $1.02 billion, up 25.5% from 2020 with margin expanding 240 bps to 33.5%.
Financial Update
Brown & Brown exited 2021 with cash and cash equivalents of $887.1 million, up about 8.5% from the 2020-end level.
Long-term debt of $1.9 billion as of Dec 31, 2021 was down 2.2% from 2020 end.
Net cash provided by operating activities in 2021 was $948 million, up 31.4% year over year.
Dividend Update
The company paid out a cash dividend of 10.25 cents per share in the fourth quarter.
The Travelers Companies’ (TRV - Free Report) bottom line beat the Zacks Consensus Estimate for the fourth quarter of 2021 and increased 6% year over year. Total revenues increased 7% from the year-ago quarter to about $9 billion and beat the Zacks Consensus Estimate of $8.7 billion.
Travelers Companies’ net written premiums increased 10% year over year. The combined ratio deteriorated 130 basis points (bps) year over year.
Upcoming Releases
The Progressive Corporation (PGR - Free Report) will report fourth-quarter 2021 results on Jan 26. The Zacks Consensus Estimate for the fourth quarter is pegged at 99 cents, indicating a decrease of 45.9% from the year-ago reported figure.
Progressive beat estimates in one of the three reported quarters of 2021 while missing in two.
RLI Corp (RLI - Free Report) will report fourth-quarter 2021 results on Jan 26. The Zacks Consensus Estimate for the fourth quarter is pegged at 93 cents, suggesting an improvement of 24% year over year.
RLI beat estimates in the three reported quarters of 2021.
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Brown & Brown (BRO) Q4 Earnings & Revenues Top, Rise Y/Y
Brown & Brown (BRO - Free Report) reported adjusted fourth-quarter 2021 earnings of 42 cents per share, which came ahead of the Zacks Consensus Estimate by 10.5% as well as the year-ago figure by 31.2%.
The results reflect improved organic growth, margin expansion and higher commissions and fees, partly offset by increased expenses.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Behind the Headlines
Adjusted revenues of $739 million beat the Zacks Consensus Estimate by 1.5%. Moreover, the top line rose 15.1% year over year on higher commissions and fees. Organic revenues increased 9% in the reported quarter.
Commissions and fees grew 15.3% year over year to $737.9 million.
Investment income however plunged 80% year over year to $0.2 million.
Total expenses increased 16.9% to $597.7 million due to a rise in employee compensation and benefits, amortization, depreciation as well as other operating expenses.
EBITDAC was $215.7 million, up 24% year over year. EBITDAC margin expanded 210 basis points (bps) to 29.2%.
Full-Year Update
Full-year 2021 adjusted income of $2.19 per share beat the Zacks Consensus Estimate of $2.16. The bottom line increased 31.1% year over year.
Total revenues increased 16.7% from the year-ago quarter to $3.05 billion and beat the Zacks Consensus Estimate of $3.04 billion.
EBITDAC was $1.02 billion, up 25.5% from 2020 with margin expanding 240 bps to 33.5%.
Financial Update
Brown & Brown exited 2021 with cash and cash equivalents of $887.1 million, up about 8.5% from the 2020-end level.
Long-term debt of $1.9 billion as of Dec 31, 2021 was down 2.2% from 2020 end.
Net cash provided by operating activities in 2021 was $948 million, up 31.4% year over year.
Dividend Update
The company paid out a cash dividend of 10.25 cents per share in the fourth quarter.
Zacks Rank
Brown & Brown currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another Insurer
The Travelers Companies’ (TRV - Free Report) bottom line beat the Zacks Consensus Estimate for the fourth quarter of 2021 and increased 6% year over year. Total revenues increased 7% from the year-ago quarter to about $9 billion and beat the Zacks Consensus Estimate of $8.7 billion.
Travelers Companies’ net written premiums increased 10% year over year. The combined ratio deteriorated 130 basis points (bps) year over year.
Upcoming Releases
The Progressive Corporation (PGR - Free Report) will report fourth-quarter 2021 results on Jan 26. The Zacks Consensus Estimate for the fourth quarter is pegged at 99 cents, indicating a decrease of 45.9% from the year-ago reported figure.
Progressive beat estimates in one of the three reported quarters of 2021 while missing in two.
RLI Corp (RLI - Free Report) will report fourth-quarter 2021 results on Jan 26. The Zacks Consensus Estimate for the fourth quarter is pegged at 93 cents, suggesting an improvement of 24% year over year.
RLI beat estimates in the three reported quarters of 2021.