Brown & Brown Inc. reported first-quarter revenue of $ 904.7 million, an increase of 11% year-over-year, with organic revenue growth of 7.8%, the broker reported late Monday after the markets closed.
Net income for the first quarter increased by 10.3% to $ 220.3 million, and commissions and fees increased by 11% to $ 904.3 million.
Brown’s retail segment had organic growth of 8.9%; the national programs segment grew organically by 6.1% and the wholesale segment had organic growth of 11.3%. The brokerage services segment had a negative organic revenue growth of 6.2% on fewer weather-related claims.
Brown made two acquisitions during the quarter, with a total annual turnover of $ 165 million, said J. Powell Brown, President and CEO, during the broker’s earnings call on Tuesday morning.
The segment increases were driven by new business, good retention and interest rate hikes, he said.
The recognized market interest rate hikes were “similar” to previous quarters, averaging 3% to 7% across most lines, while surplus and surplus markets saw increases of 10% to 20% on average, Brown said during the interview.
Customers “continue to modify deductibles and limits to best handle premium price increases,” he said, adding that inflation has also made insurable values a concern for customers as prices and replacement costs have risen “significantly”.
In the midst of interest rate hikes, customers must also be able to cope with “increased emission strictness” for both cyber liability and customers with high losses, Brown said.
Looking forward, said Mr. Brown that the broker expects that “interest rate hikes will remain relatively constant in the coming quarters”, and that surplus and surplus markets should be in line with the first quarter.
General economic conditions are expected to ease in the future, Brown said. “We believe that economic growth will continue to return to more normal levels,” he said.