Brown & Brown reported higher third-quarter revenue Monday, but its underlying growth remained modest and diluted earnings per share slipped as the insurance broker worked through what its chief executive called a challenging rate environment.
The company said revenue rose 7.4% to $1.725 billion for the quarter ended September 30, from $1.606 billion a year earlier. Organic revenue grew 1.2%, while organic revenue including contingent commissions increased 1.5%, according to its earnings release.
Net income attributable to Brown & Brown increased 5.7% to $240 million. Diluted earnings per share fell to 67 cents from 68 cents. On the company’s adjusted measure, diluted earnings per share increased 1.9% to $1.07 from $1.05.
Growth and margins diverge
Income before taxes rose 2.9% to $320 million, but the corresponding margin narrowed to 18.6% from 19.4% a year earlier.
Adjusted earnings before interest, taxes, depreciation, amortization and the change in estimated acquisition earn-out payables, a measure the company calls adjusted EBITDAC, increased 1.7% to $597 million. The adjusted margin fell to 34.6% from 36.6%.
“The third quarter reflected the incredible efforts of our teammates to win more customers in spite of a challenging rate environment,” President and Chief Executive J. Powell Brown said in the release.
He said the addition of about 5,000 employees from Accession just over a year ago had broadened the company’s capabilities.
For the first nine months of 2026, revenue increased 23.4% to $5.302 billion. Organic revenue grew 0.3%, or 1.5% when contingent commissions were included. Net income attributable to the company rose 20.8% to $954 million, while diluted earnings per share were unchanged at $2.57.
JBizNews Desk | Daytona Beach, Florida
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