Brown & Brown said quarterly revenues increased $21 million, increasing from $144.7 million in 2003 to $165.6 million.

During an investors' conference call yesterday, J. Hyatt Brown, chairman and chief executive officer, said he was pleased with the results of this quarter. Mr. Brown said a tough business climate is continuing for workers' compensation insurance in California especially and contractors business is showing continued difficulty in the New York area.

"This is a choppy market and it is very difficult for us to categorize," said Mr. Brown. "But what we know is that the risk bearers are making profits, most of them at levels that they really haven't seen in a long time, if not forever."

He noted that carriers are aggressive in pursuing certain accounts, offering to increase commissions to get that business.

"Does it mean the market is going to hell? No, it doesn't," he continued. "What it means is that the risk bearers are going to be much more careful about where they are going to go after business that will continue to give them a profit at the level that they might be currently at. That means that for those risks that do not have good loss ratios, they will continue to pay more, and for those risks that are really good, they are going to pay less."

Ultimately, he observed, this translates into a slight moderation in the market. If companies find they have not reached their numbers by mid-year, their pursuit of market share could produce a soft market, Mr. Brown said.