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Will Brown & Brown's Beat Streak Continue This Earnings Season?

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Key Takeaways

  • BRO expects core commissions to rise on new and renewal business, acquisitions, and favorable FX impacts.
  • Profit-sharing commissions are projected to grow on better underwriting, higher premiums, and recent deals.
  • Investment income and organic revenues should improve, while higher operating costs lift expenses.

Brown & Brown, Inc. (BRO - Free Report) is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Jan. 26, after the closing bell.

The Zacks Consensus Estimate for BRO’s fourth-quarter revenues is pegged at $1.64 billion, indicating 38.7% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at 89 cents per share. The estimate suggests a year-over-year increase of 3.4%.

What the Zacks Model Unveils for BRO

Our proven model predicts an earnings beat for Brown & Brown this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.

Earnings ESP: Brown & Brown has an Earnings ESP of +7.71% at present. This is because the Most Accurate Estimate of 96 cents is pegged higher than the Zacks Consensus Estimate of 89 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Brown & Brown, Inc. Price and EPS Surprise

Brown & Brown, Inc. Price and EPS Surprise

Brown & Brown, Inc. price-eps-surprise | Brown & Brown, Inc. Quote

Zacks Rank: Brown & Brown currently carries a Zacks Rank #3.

Factors Likely to Shape Q4 Results of BRO

Core commissions and fees are likely to have benefited from net new and renewal business, acquisitions, and an increase from the impact of Foreign Currency Translation.

Profit-sharing contingent commissions are likely to have increased owing to improved underwriting results, growth in premium volume, and qualifying for certain profit-sharing contingent commissions that did not qualify for in the prior year and recent acquisitions. 

Net investment income is expected to have benefited from interest income earned from the proceeds of the company’s follow-on common stock offering. The Zacks Consensus Estimate is pegged at $30.1 million.

Net new business written during the preceding 12 months and growth on renewals of existing customers are likely to have aided organic revenues in the Retail segment. 

Net new business and exposure unit increases are expected to have aided organic revenues in the Wholesale Brokerage segment. 

Expenses are expected to have increased because of higher employee compensation and benefits, other operating expenses, amortization, depreciation and interest expenses.

Other Stocks to Consider

Here are some insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +6.93% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $2.45, indicating a year-over-year increase of 8.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ACGL’s earnings beat estimates in each of the last four reported quarters.

Kinsale Capital Group, Inc. (KNSL - Free Report) has an Earnings ESP of +2.06% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $5.28, indicating a year-over-year increase of 14.2%.

KNSL’s earnings beat estimates in each of the last four reported quarters.

RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +8.50% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $9.65, indicating a year-over-year increase of 19.7%.

RNR’s earnings beat estimates in three of the last four reported quarters and missed in one.

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