On Monday, Brown & Brown Inc. reported third-quarter revenue of $ 674.0 million, up 8.9% from the same period last year as interest rates continued to rise amid the pandemic.
Commissions and fees increased by 8.7% during the quarter to $ 671.4 million and organic revenue increased quarterly by 4.3%, according to the broker's earnings report released Monday following the close of US markets.
J. Powell Brown, President and CEO, said at the broker's revenue call on Tuesday that retentions, new deals and interest rate hikes helped bring results. "We had a really good third quarter," he said.
However, he was more subdued by the prospect of recovering from pandemic restrictions and returning to previously known business practices. “At this stage, we do not see face-to-face interactions return to pre-pandemic levels for a long time and more than likely the new normal will be different than before.
Net profit for the third quarter was $ 1
Brown & Brown's retail sales had sales in the third quarter of $ 359.5 million, an increase by 6.5% compared with the previous year, while organic growth increased by 4.1%.
national program units had revenue of $ 168.0 million, an increase of 17.6%, and organic revenue growth of 8.4%.
Wholesale trade generated revenue of $ 101.2 million in the third quarter, an increase of 16.2% and 8.2% organic growth.
The service unit had sales of $ 43.5 million in the third quarter, a decrease of 13.1% on lower claims activity. Organic growth also decreased by 13.1%.
Continued interest rate hikes helped increase brokerage profits, Brown said.
"During the quarter, we saw interest rate hikes that were similar to recent quarters, and in some areas they have increased. Slightly," Brown said.
"For the most part," market rates allowed 3% to 7% across most lines, Brown said, while commercial car rates rose more than 10%.  In markets for surpluses and surpluses, interest rates increased by 10% to 20% and professional liability generally increased by 10% to 25%, Brown said.
Employee benefit levels generally did not decrease as rapidly as in previous quarters.
Brown & Brown remained active in mergers and acquisitions, acquiring six businesses during the third quarter with annual sales of approximately $ 31 million, Brown said.
Through three quarters, the broker made 16 acquisitions consisting of approximately $ 117 million. in annual revenue, he said, adding that the broker has "already closed some deals for the fourth quarter."
Although the pandemic has affected the economy and businesses, it has made it uneven, Brown said, calling current economic conditions "choppy."
"We have customers who lay off a large number of employees, and others are the busiest they have ever been," said Brown.