Brown & Brown Inc.BRO

Morningstar Rating

Stock Research and Analysis

by Bill Bergman

Brown & Brown's unique sales and service-oriented growth culture couples with favorable insurance intermediary economics to yield the brokerage firm a narrow moat. Brown has delivered superior returns to shareholders historically and has developed Read more

Bulls Say

Brown has been the most profitable publicly traded insurance brokerage firm, and the incentive systems the firm has set up should lead to future good results as well.

In decentralizing operating decisions and developing accountability for performance, the company has efficiently motivated brokers to serve customers as well as shareholders.

Brown's aggressive, sales-oriented culture has proved adept at winning clients from competitors and has cushioned the impact of a softening insurance market on revenue growth. Read more

Bears Say

Brown's growth-via-acquisitions approach faces bigger challenges in the years ahead.

Brown's growth has flagged relative to other competitors in recent years, even with the relative advantage it enjoys by being allowed to continue to accept contingent commissions. Read more

Strategy

Brown & Brown focuses on intermediating insurance coverage for small- to middle-market clients, such as midsized professional partnerships and small businesses. The company intends to expand its Read more

Management

Brown & Brown has been led for many years by J. Hyatt Brown, who also served as the president and CEO of the firm's predecessor company from 1961 to 1993. Brown remains chairman, while his son J. Powell Brown has become the new CEO. The firm is Read more

Profile

Brown & Brown ranks among the largest insurance brokerage firms in the United States. It focuses on small- to middle-market customers in targeted markets where local Read more

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