BROWN & BROWN, INC. (BRO)

Brown & Brown, Inc. is a diversified insurance agency, wholesale brokerage, insurance programs, and services organization headquartered in Daytona Beach, Florida, with origins dating to 1939. The company primarily operates as an agent or broker in property, casualty, and employee benefits insurance, generally without assuming underwriting risk, though through its Wright National Flood Insurance Company subsidiary it operates a write-your-own flood insurance carrier participating in the National Flood Insurance Program administered by FEMA, and it also participates in capitalized captive insurance facilities to gain additional underwriting participation while limiting risk exposure. Revenue is generated primarily through commissions from insurance carriers (typically a percentage of premiums, sometimes supplemented by profit-sharing contingent commissions) and fees from customers for services such as claims administration, medical utilization management, Medicare Set-aside services, and Social Security disability advocacy.

As of December 31, 2023, the company operated through 322 domestic locations across 46 U.S. states and 177 international locations spanning Belgium, Bermuda, Canada, Cayman Islands, France, Germany, Hong Kong, Republic of Ireland, Italy, Malaysia, the Netherlands, United Arab Emirates, and the United Kingdom, employing 16,152 people globally. The business was organized into four reportable segments in 2023: Retail (broad commercial, public, professional and individual insurance products plus F&I warranty services), National Programs (acting as a managing general underwriter for professional liability, personal lines, commercial lines, public entity, and specialty programs including flood and earthquake coverage, distributed via independent agents and direct channels), Wholesale Brokerage (marketing excess and surplus commercial and personal lines insurance through independent agents and Lloyd's of London correspondents), and Services (third-party claims administration, medical utilization management, Medicare Set-aside, and Social Security disability advocacy services). In the fourth quarter of 2023, the company sold roughly 50% of its Services segment revenue (third-party claims administration and adjusting businesses) to Davies Group Ltd., representing approximately 3% of total company revenue, and beginning in 2024 will operate under three segments—Retail, Programs, and Wholesale—with remaining Services businesses folded into Retail.

International operations generated $527.0 million in revenue in 2023, up from $240.6 million in 2022 and $78.0 million in 2021. The company faces competition from other brokers, direct-selling insurers, and internet-based platforms, and operates in a highly regulated industry requiring licensing across the jurisdictions in which it does business. Brown & Brown emphasizes a decentralized, sales- and performance-driven culture with an ownership mindset, noting over 20% company ownership by teammates and more than 60% of U.S. employees holding company stock, alongside initiatives in teammate development (Brown & Brown University), diversity and inclusion (a DIB advisory council and Teammate Resource Groups), and employee benefits including health, retirement, and disaster relief support programs.

In 2023, the company added nearly 900 new employees through 33 acquisitions, reflecting a continued growth strategy combining organic expansion with M&A activity.