Brown & Brown Inc. Tuesday reported its second-quarter revenue increased 12.5% to $1.178 billion as it achieved 10% organic growth for the period.
Net income increased 35.2% to $257 million.
The broker’s retail segment saw 9.3% revenue growth to $646 million, with organic revenue growth of 7.3%.
The programs business grew 15.8% to $359 million, with 15.4% organic growth, and wholesale brokerage notched 14.4% revenue growth to $159 million, with 11% organic growth.
Brown & Brown also said it added $13 million of annual revenue through 10 acquisitions during the quarter.
Speaking on the company’s Tuesday morning earnings call, J. Powell Brown, president and CEO, said the overall changes in rates for most lines were “relatively consistent with the last few quarters.”
Rates in the admitted property/casualty market continued to be up 5% to 10% for most lines, while the downward trend for workers compensation rates remained, with decreases of 5% to 10% in most states with the low level of unemployment. “We expect this trend to continue for the [third] quarter,” Mr. Brown said.
Rate increases for noncatastrophe property moderated, Mr. Brown said, adding, “We continue to see upward pressure on rates and deductibles for properties located in convective storm zones.”
Looking forward, Mr. Brown said, “We think the economy will continue to grow in the second half of the year, at the rate fairly similar to the first half. … Inflation will further moderate as the year progresses.”
On rates, he added, “For the admitted markets, we do not anticipate material changes from the first half of the year. The outliers will continue to be auto, work comp, casualty, any really, really large premium accounts. Casualty pricing will more than likely continue to move higher.”