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Brown & Brown Q2 Earnings Beat Estimates, Commission and Fees Up Y/Y
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Key Takeaways
BRO posted Q2 adjusted EPS of $1.03, beating estimates and rising 10.8% year over year.
Revenue rose 9.1% to $1.3B, led by 7.7% commission and fees growth and 3.6% organic revenue gain.
Adjusted EBITDAC rose 12.1% to $471M with margin up 100 bps, despite a 17.1% rise in expenses.
Brown & Brown, Inc.’s (BRO - Free Report) second-quarter 2025 adjusted earnings of 1.03 per share beat the Zacks Consensus Estimate by 4%. The bottom line increased 10.8% year over year.
The quarterly results reflected improved organic revenues, expanded EBITDAC margin and increased net investment income, offset by higher expenses.
Q2 Details
Total revenues of $1.3 billion beat the Zacks Consensus Estimate by 0.7%. The top line improved 9.1% year over year. The upside can be primarily attributed to commission and fees, which grew 7.7% year over year to $1.2 billion. Our estimate for commission and fees growth was 8.5%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Organic revenues improved 3.6% year over year to $1.2 billion in the quarter under review.
Investment income increased year over year to $36 million. The Zacks Consensus Estimate for the metric was pegged at $18.6 million, and our estimate was $22.9 million.
Adjusted EBITDAC was $471 million, up 12.1% year over year. EBITDAC margin expanded 100 basis points (bps) year over year to 36.7%. Our estimate for adjusted EBITDAC was $434.5 million.
Total expenses increased 17.1% year over year to $974 million due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation, and interest. Our estimate was $960.8 million.
Financial Update
Brown & Brown exited the second quarter with cash and cash equivalents of $8.9 billion, which increased more than 13-fold from the 2024-end level.
Long-term debt was $7.5 billion as of June 30, 2025, up 107.5% from the 2024-end level.
Net cash provided by operating activities in the first half of 2025 was $538 million, up 44.2% year over year.
Dividend Update
The board of directors approved a regular quarterly cash dividend of 15 cents per share to be paid out on Aug. 20, 2025, to shareholders of record as of Aug. 13.
First American Financial (FAF - Free Report) reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.
Chubb Limited (CB - Free Report) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.
Kinsale Capital Group (KNSL - Free Report) delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the Zacks Consensus Estimate of $434 million. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 million. Gross written premiums of $555.5 million rose 4.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $623.1 million.Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million.
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Brown & Brown Q2 Earnings Beat Estimates, Commission and Fees Up Y/Y
Key Takeaways
Brown & Brown, Inc.’s (BRO - Free Report) second-quarter 2025 adjusted earnings of 1.03 per share beat the Zacks Consensus Estimate by 4%. The bottom line increased 10.8% year over year.
The quarterly results reflected improved organic revenues, expanded EBITDAC margin and increased net investment income, offset by higher expenses.
Q2 Details
Total revenues of $1.3 billion beat the Zacks Consensus Estimate by 0.7%. The top line improved 9.1% year over year. The upside can be primarily attributed to commission and fees, which grew 7.7% year over year to $1.2 billion. Our estimate for commission and fees growth was 8.5%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Organic revenues improved 3.6% year over year to $1.2 billion in the quarter under review.
Investment income increased year over year to $36 million. The Zacks Consensus Estimate for the metric was pegged at $18.6 million, and our estimate was $22.9 million.
Adjusted EBITDAC was $471 million, up 12.1% year over year. EBITDAC margin expanded 100 basis points (bps) year over year to 36.7%. Our estimate for adjusted EBITDAC was $434.5 million.
Total expenses increased 17.1% year over year to $974 million due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation, and interest. Our estimate was $960.8 million.
Financial Update
Brown & Brown exited the second quarter with cash and cash equivalents of $8.9 billion, which increased more than 13-fold from the 2024-end level.
Long-term debt was $7.5 billion as of June 30, 2025, up 107.5% from the 2024-end level.
Net cash provided by operating activities in the first half of 2025 was $538 million, up 44.2% year over year.
Dividend Update
The board of directors approved a regular quarterly cash dividend of 15 cents per share to be paid out on Aug. 20, 2025, to shareholders of record as of Aug. 13.
Zacks Rank
Brown & Brown currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
First American Financial (FAF - Free Report) reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.
Chubb Limited (CB - Free Report) reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.
Kinsale Capital Group (KNSL - Free Report) delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the Zacks Consensus Estimate of $434 million. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 million. Gross written premiums of $555.5 million rose 4.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $623.1 million.Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million.