Speaking during an investor's conference call, Martin L. "Mell" Vaughan III, the firm's chairman and chief executive officer, said that the first-quarter earnings per share growth was below the firm's long-term expectations. The results reflect changes the firm is making in its operating model. He said because of these changes, both to save costs and to enhance revenue, it will be difficult to make year-to-year comparisons, but the benefit of the changes will be seen in the coming quarters.

Organic growth rebounded, he noted, coming in at 5.1 percent. However, he added, the firm was expects to see that growth improve even more in the future.

The Richmond, Va.-based firm said it is still investigating additional acquisitions, aiming to purchase firms with annualized revenues between $30 million and $60 million. He said the low cost of capital is promoting heavy competition while at the same time, more agencies appear to be deciding it is time to merge or sell.

"The competition for acquisitions is heavy; however, the pipeline is as full as we have seen in recent years," said Mr. Vaughan. "We will continue to be very disciplined and very selective [in our choices]."

On the overall view of the insurance market, Mr. Vaughan said property premium prices continue to decline while casualty continues to show modest increases.

Robert B. Lockhart, president and chief operating officer, said the price softening the firm is seeing is opening up opportunities for new business. New business is improving the firm's ability to negotiate for increases on commission with underwriters or insulate the firm "on the downside," he said.