Core Viewpoint - Morgan Stanley analyst Bob Jian Huang downgraded Brown & Brown, Inc. from Overweight to Equal-weight, maintaining a price forecast of $128, citing strong year-to-date stock performance as a limiting factor for attractiveness [1]. Company Performance - Brown & Brown's stock has increased approximately 16% year-to-date, making it the top performer among Property & Casualty (P&C) brokers in the coverage, driven by strong fourth-quarter results and sustained momentum [2]. - The company is expected to achieve mid to high single-digit organic top-line growth in 2025 and 2026, primarily supported by its Programs and Wholesale Brokerage segments [2]. Financial Metrics - The company is projected to maintain an industry-leading Adjusted EBITDAC margin in the mid-30s for both 2025 and 2026, indicating strong and stable growth [3]. - The downgrade is attributed to the company gradually earning into its current valuation, although the analyst believes that the fundamentals will surpass those of peers in the long term [3]. Investment Opportunities - Investors can gain exposure to Brown & Brown's stock through the Motley Fool Mid-Cap Growth ETF (TMFM) and Guru Favorite Stocks ETF (GFGF) [3].

Core Viewpoint - Brown & Brown, Inc. (BRO) demonstrates strong investor confidence with its stock trading near a 52-week high, indicating potential for further price appreciation and solid upward momentum as it trades above key moving averages [1] Financial Performance - Earnings have grown 21.5% over the past five years, surpassing the industry average of 13.7%, with the company consistently beating earnings estimates in the last four quarters, averaging a surprise of 8.18% [2] - The Zacks Consensus Estimate for 2025 earnings per share indicates an 8.8% year-over-year increase, with revenues projected at $5.21 billion, reflecting an 8.4% improvement [3] Analyst Sentiment - All seven analysts covering BRO have raised their estimates for 2025, with three also increasing estimates for 2026, leading to a 2.2% and 1.8% upward revision in the Zacks Consensus Estimates for 2024 and 2025, respectively [4] Stock Performance - BRO shares have gained 12.5% year-to-date, outperforming the industry growth of 10.6%, the Finance sector's return of 4.4%, and the Zacks S&P 500 composite's rise of 1% [5][6] Key Growth Drivers - The main revenue drivers include commissions and fees, benefiting from new business growth, strong retention rates, and continued rate increases across most coverage lines, achieving an intermediate annual revenue goal of $4 billion [7] - Strategic acquisitions have allowed BRO to capitalize on market opportunities, enhance its product and service portfolio, and expand its global reach, completing 32 acquisitions in 2024 [8][9] Capital Management - BRO maintains a strong liquidity position with an improving leverage ratio, ensuring effective cash deployment for acquisitions, capital expenditures, and shareholder dividends, having increased dividends for the last 30 years at a five-year CAGR of 8.7% [9][10]

Core Viewpoint - Brown & Brown's recent earnings report shows strong performance with adjusted earnings and revenue growth, indicating positive momentum leading up to the next earnings release [2][3][6]. Financial Performance - Q4 2024 adjusted earnings were 86 cents per share, exceeding the Zacks Consensus Estimate by 14.7% and reflecting a year-over-year increase of 48.3% [2]. - Total revenues for Q4 reached $1.2 billion, surpassing the Zacks Consensus Estimate by 6.4% and showing a 15.4% year-over-year improvement [3]. - Commission and fees grew 15.4% year over year to $1.1 billion, contributing significantly to revenue growth [3]. - Investment income rose 22.2% year over year to $22 million, although it fell short of internal estimates [4]. - Adjusted EBITDAC for Q4 was $390 million, up 22.6% year over year, with an EBITDAC margin expansion of 190 basis points to 32.9% [4]. Expense Analysis - Total expenses increased by 35.72% to $909 million, driven by higher employee compensation and other operational costs [5]. Full-Year Highlights - For the full year, adjusted earnings were $3.25 per share, missing the Zacks Consensus Estimate of $4.73 per share, but still reflecting an 81.2% year-over-year increase [6]. - Total revenues for the year were $4.8 billion, exceeding the Zacks Consensus Estimate and improving 12.9% year over year [6]. - Adjusted EBITDAC for the full year increased 17% to $1.7 billion, with a margin expansion of 130 basis points to 35.2% [6]. Financial Position - As of the end of 2024, cash and cash equivalents stood at $2.5 billion, an 8.6% increase from the previous year [7]. - Long-term debt was reported at $4 billion, up 11.5% from the end of 2023 [7]. - Net cash provided by operating activities in 2024 was $1.6 billion, reflecting a 16.2% year-over-year increase [7]. Dividend Information - The board of directors declared a regular cash dividend of $154 million during the reported quarter [8]. Market Sentiment - There has been an upward trend in estimates revisions for Brown & Brown, indicating positive market sentiment [9]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12].

Core Insights - Brown & Brown, Inc. has appointed Stephen P. Hearn as executive vice president and chief operating officer, effective immediately, following his resignation from the board of directors [1][2] - Hearn brings 35 years of experience in the insurance industry and will focus on scaling operations, fostering innovation, and developing talent within the company [2][3] - The company aims to achieve an interim revenue goal of $8 billion, leveraging Hearn's expertise to drive operational excellence and identify potential acquisitions [3] Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm established in 1939, with over 500 locations and a workforce of more than 17,000 professionals [5] - The company is dedicated to providing customer-centric risk management solutions and innovative strategies to support clients throughout their growth journey [5] Leadership Background - Stephen P. Hearn has held various leadership roles in the insurance sector, including CEO positions at The Ardonagh Group and Corant Global, and has extensive experience with Willis Group Holdings [4] - His previous roles include significant positions in reinsurance broking and insurance brokerage, showcasing a strong background in the industry [4]

Core Insights - Brown & Brown, Inc. has appointed Stephen P. Hearn as executive vice president and chief operating officer, effective immediately, following his resignation from the board of directors [1][2] - Hearn brings 35 years of experience in the insurance industry and will focus on scaling operations, fostering innovation, and developing talent within the company [2][3] - The company aims to reach an interim revenue goal of $8 billion, leveraging Hearn's expertise to drive operational excellence and identify potential acquisitions [3] Company Overview - Brown & Brown, Inc. is a leading insurance brokerage firm established in 1939, with over 500 locations and a workforce of more than 17,000 professionals [5] - The company is dedicated to providing customer-centric risk management solutions and innovative strategies to support clients throughout their growth journey [5] Leadership Background - Stephen P. Hearn has held various leadership roles in the insurance sector, including CEO positions at The Ardonagh Group and Corant Global, and has extensive experience with Willis Group Holdings [4] - His previous roles include significant positions in reinsurance broking and insurance brokerage, showcasing a strong background in the industry [4]

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Pro UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (State or other jurisdiction of incorporation or organization) 300 North Beach Street, Daytona Beach, FL 32114 (Address of principal executive offices) (Zip Code) Florida 59-0864469 (I.R.S. Employer Id ...

Brown & Brown, Inc.’s (BRO) fourth-quarter 2024 adjusted earnings of 86 cents per share beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 48.3% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.The quarterly results reflected improved organic revenues, driven by higher commission and fees and investment income and expanded EBITDAC margin, offset by higher expenses.Shares gained 1.9% in after-market trading to reflect the outperformance.BRO’s Q4 DetailsTot ...

Fourth Quarter & Full Year 2024 Results January 27, 2025 Information Regarding Forward-Looking Statements This presentation and the statements made during our earnings call may contain certain statements relating to future results which are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. You can identify these statements by forward-l ...

Brown & Brown (BRO) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.67%. A quarter ago, it was expected that this insurance company would post earnings of $0.87 per share when it actually produced earnings of $0.91, delivering a surprise of 4.60%.Over the last four quarters, the co ...

Financial Performance - Total revenues for Q4 2024 were $1.2 billion, an increase of 15.4% compared to Q4 2023[2] - Organic revenue growth for Q4 2024 was 13.8%, with commissions and fees also increasing by 15.4%[2][6] - Net income attributable to the Company for Q4 2024 was $210 million, a decrease of 21.9% from Q4 2023, with diluted net income per share decreasing to $0.73[2][4] - For the full year 2024, total revenues reached $4.8 billion, up 12.9% from 2023, with organic revenue growth of 10.4%[3][4] - EBITDAC - Adjusted for Q4 2024 was $390 million, an increase of 22.6% from Q4 2023, with an EBITDAC margin - Adjusted of 32.9%[2][11] - Income before income taxes for Q4 2024 was $275 million, down 22.8% from the previous year, with a margin decrease to 23.2%[2][11] - Diluted net income per share - Adjusted for Q4 2024 increased to $0.86, a rise of 24.6% compared to Q4 2023[7][8] - For the full year 2024, net income attributable to the Company was $1.0 billion, an increase of 14.0% from 2023[3][4] Assets and Liabilities - Total assets increased to $17,612 million in 2024, up from $14,883 million in 2023, representing a growth of 18.4%[16] - Total current assets increased significantly to $6,924 million in 2024, up from $5,130 million in 2023, marking a growth of 35%[16] - Current liabilities also rose to $6,314 million in 2024, compared to $4,956 million in 2023, indicating a 27.4% increase[16] - Retained earnings grew to $6,128 million in 2024, up from $5,289 million in 2023, which is an increase of 15.9%[16] - Cash and cash equivalents, including fiduciary cash, at the end of the period were $2,502 million, up from $2,303 million in 2023, a rise of 8.7%[18] Cash Flow and Investments - Net cash provided by operating activities rose to $1,174 million in 2024, an increase of 16.2% from $1,010 million in 2023[18] - Payments for businesses acquired in 2024 totaled $890 million, compared to $631 million in 2023, reflecting a 41% increase in acquisition activity[18] - The company reported a net increase in cash and cash equivalents of $199 million in 2024, down from $270 million in 2023[18] Key Performance Metrics - Organic Revenue is a key performance metric that excludes revenues from newly acquired operations, divested businesses, and Foreign Currency Translation, allowing for a clearer assessment of revenue growth[27] - The company will no longer exclude Foreign Currency Translation from EBITDAC - Adjusted, EBITDAC Margin - Adjusted, and Diluted Net Income Per Share - Adjusted starting January 1, 2024, to enhance comparability of financial performance[25] - Amortization of intangible assets will also be excluded from Diluted Net Income Per Share - Adjusted starting January 1, 2024, as it is a non-cash expense not indicative of business performance[26] - EBITDAC is defined as income before interest, income taxes, depreciation, amortization, and changes in estimated acquisition earn-out payables, providing insight into operational efficiency[31] - EBITDAC Margin is calculated as EBITDAC divided by total revenues, serving as an important measure of operating margins[31] - Diluted Net Income Per Share - Adjusted excludes several non-recurring costs, including acquisition/integration costs and amortization, to provide a clearer picture of profitability[31] - Key performance metrics such as Organic Revenue growth, Diluted Net Income Per Share - Adjusted, and EBITDAC Margin - Adjusted are used for executive compensation plans[24] - The adjustments made to non-GAAP measures aim to improve the comparability of financial results across periods[30] - The company emphasizes the importance of EBITDAC and its adjusted measures for evaluating performance in a consistent manner[24] Future Plans - The company plans to discuss its fourth quarter and full year 2024 results in a conference call scheduled for January 28, 2025[19]