Brown & Brown Increases Dividend

Daytona Beach, Fla.-based Insurance broker Brown & Brown Inc. said it will increase its quarterly cash dividend by 1 cent to 7 cents per share.

Payment of the new rate will be made on Nov. 21 to shareholders of record as of Nov. 7.

Yesterday, the broker reported third-quarter net income rose $6 million to $46 million, or 33 cents a share, up 4 cents over the same period last year. Revenues rose 12 percent, or $25 million, to $237 million compared with the same period last year.

Net income for the nine months compared with last year rose 17 percent, or $23 million, to $158 million. Net income per share rose 16 cents to $1.12. Revenues rose 12 percent, or $79 million, to $742 million.

Executives said earnings were challenged by the soft market premium rates, which translated into a 3 percent decline in organic growth for the firm. Worst hit was Florida retail, which experienced a drop of 11 percent over the same period a year ago, down $4.6 million to $39 million.