B&B Continues Earnings Climb
By Mark E. Ruquet
NU Online News Service, Oct. 9, 1:55 p.m. EDT?Brown & Brown, Inc. reported a net income increase of 29 percent for the third quarter of 2003, crediting growth in its brokerage and third party administrative services segment.
For the third quarter, Brown reported net income of $26.1 million, an increase of $5.9 million from $20.2 million for the third quarter of 2002. Revenues rose 21 percent, or $23 million in the quarter, from $111 million to $134 million. Earnings per share increased 31 percent, or nine cents a share, from 29 cents in 2002 to 38 cents.
Net income for the nine months ending Sept. 30 rose 37 percent or $22.8 million, going from $61.7 million to $84.5 million, the company said.
J. Hyatt Brown, chairman and chief executive officer for the firm, noting the broker's performance, said Brown earned more by the third quarter of this year than it earned all of last year.
Revenues for the nine months rose 24 percent, or $79.5 million, going from $336.6 million in 2002 to $416.14 million in 2003. Earnings per share increased 35 percent, or 32 cents, going from 91 cents a share to $1.23 so far in 2003.
During an investor's conference call, Mr. Brown said that challenges to continue growing lay ahead for Brown and the industry as a whole. He noted some problem areas in workers' compensation, especially Florida and California where commissions are being reduced.
"It's going to be a battle royal for awhile," he said.
Generally, Mr. Brown said he expects insurers to remain responsible about pricing and continue to work at keeping their balance sheets in order by remaining disciplined in their underwriting.
"I'm not expecting them to be irresponsible," he said.
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