P&C insurance premiums continue toexhibit increases as high as 10 percent on some risks, asreinsurance rate-softening on property will not pass through to therest of the market immediately, says the CEO of insurance brokerBrown & Brown.

Today during the company’s second-quarter earnings conferencecall, President and CEO J. Powell Brown says primary marketcarriers are reluctant to pass along the bulk of reinsurancedecreases immediately as they wait for the outcome of thisyear’s hurricane season. If this season does not produce a majorwind event ,then the first to feel that outcome could be the excessand surplus lines market--translating into flat or declining ratesstarting in January of next year.

“That’s not a negative for Brown & Brown,” says the CEO. “Wecan still grow when we are doing that. The answer is that itcreates a lot of opportunities for us to do a good job not only forour existing clients, but for new clients we don’t alreadyhave.”

“It is not just the reinsurance issue that is going to moderaterates further,” says Brown adding that the other competingfactors are competition and surplus capital in the marketplace.

In his general observation of the insurance markets, Brown saysrates in most lines of business are flat to up as high as 10percent. The more difficult business continues to be workers’compensation and commercial auto in some states. The only risks hementioned that are experiencing any rate decrease are large coastalaccounts.

“All carriers want rate, but the competitive pressures aremoderating those rates more today than in Q1. Regional [insurers]continue to be very aggressive,” says Brown.

Turning to the firm’s earnings, second-quarter net incomerose 22 percent to $52 million. Revenues increased 12 percent to$326 million in the quarter, with organic growth of more than 7percent. For the first six months of this year, net income is up 22percent to more than $112 million and revenues are up 11 percent to$661 million.

Brown says the company’s acquisition pipeline remains “good” andthe firm is aggressively seeking new business. All four divisionsof the firm contributed positively to the results, he adds.