Brown & Brown Q2 Profit Rises - Update

(RTTNews) - Insurance broker Brown & Brown Inc. (BRO), Monday reported a 24 percent increase in profit for the second quarter, driven mainly by strong growth of commission and fees. Both earnings and revenue for the quarter came in ahead of Wall Street expectations.

Retail commissions and fees for the quarter rose 6.7 percent to $168.58 million from last year, while wholesale brokerage commissions and fees advanced 14.2 percent to $52.86 million. National programs commissions increased 18.3 percent to $62.86 million, and services fees climbed 10 percent to $30.27 million.

Revenues totaled $325.79 million, up 12 percent from $290.92 million last year. Analysts expected revenues of $318.30 million.

Commenting on the results, Chief Executive Powell Brown said, "We are very pleased with our quarterly consolidated internal growth rate in core commissions and fees of 7.4 percent."

Daytona Beach, Florida-based Brown & Brown's second-quarter profit improved to $52.01 million or $0.36 per share from $42.47 million or $0.29 per share in the comparable quarter last year. On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.35 per share for the quarter. Analysts' estimates typically exclude special items.

BRO closed Monday's trading at $33.79, up $0.03 or $0.09%, on the NYSE. In after hours trade, the stock further gained $0.71 or 2.10%.