This translated into net income per share increase of 13 cents, going from 31 cents a share in the first quarter of 2002 to 44 cents a share.

J. Hyatt Brown, chairman and chief executive officer for the Daytona Beach and Tampa, Fla.-based firm, said in a conference call for financial analyst's that rates are "moderating" or "flattening" on large accounts, defined as more than $100,000 in annual premium.

Middle market business, which is the bulk of the brokers account, is seeing premium increases of between 7 and 11 percent, compared to 10 to 20 percent last year.

He said risks with wind exposure or habitation, or that have a bad loss ratio, are finding no coverage available or at substantial increase. Umbrella and errors and omissions coverage continues to escalate at rates of "20 to a couple hundred percent."

Workers' compensation premiums could see fluctuations in California, Mr. Brown said, with "radical changes" contemplated as the state's legislators look to increase the state fund by 40 percent. Such an increase, he suggested, could increase competition among companies as they re-enter the market.

"It's not a huge state for us, yet," he observed.

In Florida, which accounted for $32.5 million in the firm's core commission and fees, restrictions in the workers' comp market have kept the firm from taking on some new accounts, Mr. Brown said.

He added that there is legislative reform being looked at in Florida, but he was pessimistic that the results would benefit the workers' comp market, saying "the rumor is that if they do anything it results in a rate decrease."

Mr. Brown added that the state currently has a 13 percent increase in place. Twenty-five percent of the brokers business in Florida is in workers' comp, he said.

Mr. Brown said that the workers' comp situation is nothing the firm has not seen before.

"We do have a game plan in the worker's comp area and are in the process of implementing it now, and we expect the Florida retail to continue to turn in very good numbers," said Mr. Brown.