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Brown & Brown Q1 Earnings Top Estimates on Higher Commissions
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Key Takeaways
BRO Q1 EPS of $1.39 beat estimates and increased 7.8% year over year.
Brown & Brown's revenues rose 35.4% on higher commissions, fees, and investment income.
BRO's expenses jumped 40% while organic revenues remained flat year over year.
Brown & Brown, Inc.’s (BRO - Free Report) first-quarter 2026 adjusted earnings of $1.39 per share beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 7.8% year over year.
The quarterly results were supported by higher commissions and fees, improved investment income and higher adjusted EBITDAC, though partially offset by elevated expenses and flat organic growth.
BRO’s Q1 Details
Total revenues of $1.9 billion beat the Zacks Consensus Estimate by 1.4%. The top line improved 35.4% year over year. The upside can be primarily attributed to commission and fees, which grew 35.7% year over year to $1.8 billion. The figure beat the Zacks Consensus Estimate for commission and fees by 1%. Improved investment and other income added to the top line.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Organic revenues remained flat year over year at $1.3 billion.
Investment income and other income increased 10.5% year over year to $21 million.
Adjusted EBITDAC was $731 million, up 36.6% year over year. The EBITDAC margin improved 40 basis points year over year to 38.5%.
Total expenses increased 40% to $1.36 billion due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest.
Financial Update of BRO
Brown & Brown exited the first quarter with cash and cash equivalents of $1 billion, which decreased 7% from the 2025-end level.
Long-term debt was $6.5 billion as of March 31, 2026, down 4.5% from the 2025-end level.
Net cash provided by operating activities was $262 million, up 23% year over year.
Dividend Update
The board of directors approved a regular quarterly cash dividend of 16.5 cents per share to be paid out on May 20, 2026, to shareholders of record as of May 11, 2026.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remained flat from the year-ago quarter at $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
RLI Corp. (RLI - Free Report) reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%. Gross premiums written increased 3% year over year to $503.9 million. Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate for the metric was pegged at $40.2 million, while our estimate was $38.3 million.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. Net premiums written were about $3.2 billion, up 1.3% year over year. The figure beat our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
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Brown & Brown Q1 Earnings Top Estimates on Higher Commissions
Key Takeaways
Brown & Brown, Inc.’s (BRO - Free Report) first-quarter 2026 adjusted earnings of $1.39 per share beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 7.8% year over year.
The quarterly results were supported by higher commissions and fees, improved investment income and higher adjusted EBITDAC, though partially offset by elevated expenses and flat organic growth.
BRO’s Q1 Details
Total revenues of $1.9 billion beat the Zacks Consensus Estimate by 1.4%. The top line improved 35.4% year over year. The upside can be primarily attributed to commission and fees, which grew 35.7% year over year to $1.8 billion. The figure beat the Zacks Consensus Estimate for commission and fees by 1%. Improved investment and other income added to the top line.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Organic revenues remained flat year over year at $1.3 billion.
Investment income and other income increased 10.5% year over year to $21 million.
Adjusted EBITDAC was $731 million, up 36.6% year over year. The EBITDAC margin improved 40 basis points year over year to 38.5%.
Total expenses increased 40% to $1.36 billion due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest.
Financial Update of BRO
Brown & Brown exited the first quarter with cash and cash equivalents of $1 billion, which decreased 7% from the 2025-end level.
Long-term debt was $6.5 billion as of March 31, 2026, down 4.5% from the 2025-end level.
Net cash provided by operating activities was $262 million, up 23% year over year.
Dividend Update
The board of directors approved a regular quarterly cash dividend of 16.5 cents per share to be paid out on May 20, 2026, to shareholders of record as of May 11, 2026.
Zacks Rank
BRO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remained flat from the year-ago quarter at $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
RLI Corp. (RLI - Free Report) reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%. Gross premiums written increased 3% year over year to $503.9 million. Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate for the metric was pegged at $40.2 million, while our estimate was $38.3 million.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. Net premiums written were about $3.2 billion, up 1.3% year over year. The figure beat our estimate as well as the Zacks Consensus Estimate of $3.18 billion.