“We are pleased with our record earnings in the third quarter,” says J. Powell Brown, president and chief executive officer, in a statement. “Our retail division continues to show increasing organic growth, which suggests that economic conditions are improving for our clients across the country, who are predominantly in the middle market.”

Organic growth was up 1 percent in the quarter with the wholesale and services segment showing the most gains.

Total commissions and fees for the third quarter rose 18 percent, or more than $45 million, to $302 million. For the first nine months of the year, commissions and fees increased 16 percent, or more than $124 million, to $889 million.

During a conference call with financial analysts today, Brown described an insurance marketplace where rates are generally flat to on the increase up to 10 percent.

On workers' compensation in California, Brown says he spoke to one of the Brown & Brown offices out there where one of the executives notes that “their clients now are either beginning to grow or have already gone out of business. It's upward now, hopefully, and they are seeing a little push.”

Rates on workers' comp in California, he says, are firming, up 10 to 15 percent. Large national carriers “that are not work comp specific seem to be pulling back,” he continues. Specialty workers' comp carriers are picking up the slack.

State officials are trying to hold down increases, he says, and the State Fund, the state's residual writer of workers' comp, and the largest writer of the coverage in the state, cut rates.

“I think this is really a question of who blinks first,” says Brown. One positive, he says. is that in audits of workers' comp accounts in the state, carriers are not finding themselves giving premium back for the first time in years.

In the area of employee benefits, he says small groups are under a lot of rate pressure, 5 to 10 percent or more, while large group is flat to 5 percent rate increases and 10 percent or more on accounts with “not good experience,” says Brown and depending on what part of the country one is in.

One exception to the overall insurance rate climate is New York City contracting, which Brown says has “its own little hard market” in both primary and excess.

Nationally, habitational risks are under upward rate pressure, he says, adding “Carriers are looking more carefully at accounts with losses and everyone is looking for products liability coverage.”

“Carriers all want rate in certain lines,” says Brown. “Sometimes they get it and sometimes they don't. As we look into next year, we think there is still some rate pressure in certain areas, but moderating across the board except in workers' compensation and homeowners.”