Brown & Brown Reports Q1 2025 Earnings: Key Financial Insights
Brown & Brown, Inc.’s BRO reported adjusted earnings of $1.29 per share for the first quarter of 2025. This fell short of the Zacks Consensus Estimate by 0.7%. Nonetheless, earnings increased by 13.2% compared to the same quarter last year.
The results showcased strong organic growth, enhanced EBITDAC margin, and a rise in commissions and fees. These were somewhat countered by heightened expenses and a decline in investment income.
Quarterly Highlights
Total revenues reached $1.4 billion, slightly surpassing the Zacks Consensus Estimate by 0.1% and marking an 11.6% increase year over year. This growth was mainly driven by a 12% year-over-year rise in commissions and fees, amounting to $1.3 million, which aligned with expectations.
Organic revenues grew by 6.5%, totaling $1.2 billion for the reporting quarter.
Brown & Brown, Inc. Price, Consensus, and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Investment and other income decreased by 9.5% year over year, amounting to $19 million. Adjusted EBITDAC rose to $535 million, a year-over-year increase of 14.8%, with the EBITDAC margin improving to 38.1%, up from 37% last year.
Total expenses climbed by 9.3% to $977 million due to increases in employee compensation, benefits, and other operational costs.
Financial Overview
As of the end of Q1 2025, Brown & Brown had cash and cash equivalents of $669 million, reflecting a 0.8% decrease from year-end 2024. Long-term debt stood at $3.73 billion, up 3.7% from the previous year.
Net cash from operating activities surged to $213 million, a remarkable 16-fold increase year over year.
Dividend Announcement
The board declared a regular quarterly cash dividend of 15 cents per share, scheduled for payment on May 21, 2025, to shareholders recorded as of May 12, 2025.
Zacks Rank
Currently, Brown & Brown holds a Zacks Rank of #3 (Hold).
Performance of Industry Peers
Willis Towers Watson Public Limited Company (WTW) reported adjusted earnings of $3.13 per share in Q1 2025, missing the Zacks Consensus Estimate by 2.1%, with flat year-over-year performance. Its adjusted consolidated revenues fell to $2.2 billion, down 5% year over year due in part to the sale of TRANZACT.
Total service costs reduced by 13% year over year to $1.8 billion, below the expected $2 billion. Adjusted operating income was $480 million, marking a 1% decrease from the prior year, although the operating margin increased by 100 basis points to 21.6%.
Marsh & McLennan Companies, Inc. (MMC) reported adjusted earnings of $3.06 per share, beating estimates by 1.3% and showing a 5% year-over-year increase. Its consolidated revenues totaled $7.1 billion, rising 9% year over year but narrowly missing consensus forecasts.
Operating expenses surged 11.2% year over year, reaching $5.1 billion, surpassing the projected $4.8 billion. The Risk and Insurance Services segment’s expenses grew by 16.3%, while the Consulting segment saw a 4.3% rise.
Selective Insurance Group, Inc. (SIGI) posted operating income of $1.76 per share, missing estimates by 6.8% but up 32.3% year over year. Total revenues increased by 10% year over year, amounting to $1.3 billion, slightly below consensus expectations.
Net premiums written climbed 7% year-over-year to $1.2 billion. Average renewal pure price rose by 220 basis points to 10.3%, matching expectations. Net investment income improved by 12% to $95.6 million, with after-tax underwriting income more than doubling to $36.1 million, despite net catastrophe losses of $43.4 million, which were lower than last year’s $55.2 million.
