Brown & Brown’s profit rises on commissions, fee growth

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Oct 23 (Reuters) – Brown & Brown (BRO.N) on Monday reported a near 9% rise in third-quarter profit as the insurance brokerage earned more commissions and fees, sending its shares up 1% in extended trading.

Demand for insurance products has remained resilient against an uncertain economy and the sector is typically considered recession-proof, as many policies are often guaranteed by employers while some are mandated by the government.

Insurance brokerages like Brown & Brown serve as a bridge between an insurer and customers, helping its clients find a policy which best suits their needs.

The company’s commissions and fees increased 13.4% in the quarter to about $1.05 billion.

It is the fifth largest independent insurance brokerage in the U.S. specializing in risk management, and operates through four business segments – retail, national programs, wholesale brokerage, and services.

The company said total revenues climbed 15.1% in the third quarter to about $1.07 billion.

Brown & Brown posted net income of 62 cents per diluted share for the three months ended Sept. 30, compared with 57 cents a year earlier.

Reporting by Manya Saini in Bengaluru; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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