On Monday, Brown & Brown Inc. reported fourth-quarter organic sales growth of 4.7% as commissions and fees increased by 10.9%.
Revenue for the fourth quarter increased by 10.9% to $ 642.1 million and net income increased by 27.2% to $ 97.3 million.
For the full year, organic growth was 3.8% and commissions and fees increased by 9.3%. Revenue for the year increased 9.2% to $ 2.61 billion and net income increased by 20.6% to $ 480.5 million.
J. Powell Brown, CEO and CEO of the broker, said in the company's revenue call on Tuesday that most standard interest rates had risen 3% to 7% for the fourth quarter, while surplus and surplus rates rose by 1
Commercial car interest rates increased by 10% or more during the fourth quarter. Workers' compensation levels decreased, but not as sharply as in previous quarters .
The main driver of interest rate hikes "continues to be loss experience," Brown said.
Looking forward to, Mr. Brown said, "From an interest rate perspective, we expect increases in the first half of 2021." He added that the recovery of the economy may be "hooked" and will be affected by the timing of the vaccine expansion and the approval of additional economic stimulus.
Organic revenue growth for the broker's retail segment was 1.5% for the fourth quarter and 2.4% for the year, according to R. Andrew Watts, vice president, chief financial officer and treasurer, who also spoke about the conversation.
Organic growth in Brown's national program segment was 14.1% for the fourth quarter and 12.3% for the year, Watts said. Organic growth for the wholesale broker segment was 5.8% for the quarter and 5.5% for the year.
Mr. Brown said the broker made 25 acquisitions in 2020, a total of $ 197 million in acquired revenue.
He pointed to Brown's acquisition in November of the online insurance platform CoverHound Inc., which he said "will help us further invest in technology, drive our innovation agenda and improve our operator connectivity."
CoverHound, he continued, "does enables us to more efficiently and effectively offer quotes and tie coverage for our national program segment and enables us to better serve smaller customers in our retail segment. ”