B&B 3Q Net Income Creeps Up In 'Challenging' Environment

NU Online News Service, Oct. 20, 2:44 p.m. EDT

Brown & Brown Inc. reported 2009 third-quarter net income of $41 million, up just under 1 percent from 2008 net income of $40.6 million.

J. Powell Brown, president and chief executive officer of the Tampa Bay and Daytona Beach, Fla.-based broker, said the operating environment remains challenging, and added that Brown & Brown's results "are a reflection of significant shrinkage in insurable exposure units and a soft rate environment."

For the first nine months of 2009, Brown & Brown reported net income of $129.5 million, compared to $132.8 million in 2008.

Total 2009 third-quarter revenue shrunk to $243.8 from 2008 third-quarter revenue of $247 million.

Retail business in the 2009 third quarter declined 1.2 percent, and wholesale business declined 4.6 percent.

The brokerage experienced growth in national programs (4.9 percent) and services (4.8 percent).

Jim W. Henderson, Brown & Brown vice chairman and chief operating officer, said, "The anticipated improvement in economic conditions and the stabilization of the P&C marketplace are factors that we feel will contribute to a more favorable M&A [merger and acquisition] environment going forward. We also hope to see some promising opportunities with respect to employee benefits agencies."