Insurance coverage brokerage Brown & Brown reported an 85% surge in fourth-quarter revenue to $268.6 million on Monday, helped by larger commissions and charges alongside higher funding returns.
The insurance coverage trade sometimes enjoys secure demand for its merchandise whatever the financial backdrop, as insurance policies are sometimes assured by employers whereas some are mandated by the federal government.
The corporate’s core commissions and charges elevated about 11.5% to $964 million within the three months ended Dec. 31.
Funding earnings surged to $18.5 million. The equities benchmark index S&P 500 closed up roughly 24% in 2023, helped by a stellar efficiency of mega-cap know-how shares and a broader year-end rally on bets the U.S. Federal Reserve had completed climbing rates of interest.
Insurers additionally make investments capital in rate-sensitive fixed-income merchandise which have been delivering stable returns within the “higher-for-longer” rate of interest atmosphere.
Brown & Brown is without doubt one of the largest unbiased insurance coverage brokerages within the U.S. specializing in danger administration. It has company workplaces in Daytona Seaside, Florida, and operations across the nation and abroad. It operates by way of 4 enterprise segments – retail, nationwide applications, wholesale brokerage and companies.
The corporate stated complete income climbed 13.8% through the quarter to about $1.03 billion.
Brown & Brown posted internet earnings of 94 cents per diluted share, in contrast with 51 cents a 12 months earlier.
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