BRO

Financials

Brown & Brown

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Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Metric	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$977.6M	$967.9M	$973.5M	$1.0B	$1.2B	$1.4B	$1.6B	$1.7B	$1.8B	$1.9B	$2.0B	$2.4B	$2.6B	$3.1B	$3.6B	$4.3B	$4.8B	$5.9B	+22.8%
Net Income	$166.1M	$153.3M	$161.8M	$164.0M	$184.0M	$217.1M	$206.9M	$243.3M	$257.5M	$399.6M	$344.3M	$398.5M	$480.5M	$587.1M	$671.8M	$870.5M	$993.0M	$1.1B	+6.1%
Net Margin	17.0%	15.8%	16.6%	16.2%	15.3%	15.9%	13.1%	14.7%	14.6%	21.2%	17.1%	16.7%	18.4%	19.2%	18.8%	20.4%	20.7%	17.9%	-2.8pp
ROA	—	6.89%	6.74%	6.29%	5.88%	5.95%	4.17%	4.85%	4.87%	6.95%	5.15%	5.23%	5.36%	5.99%	4.81%	5.85%	5.64%	3.51%	-2.1pp
EPS (Diluted)	$1.17	$1.08	$1.12	$1.13	$1.26	$1.48	$1.41	$1.70	$1.82	$2.81	$1.22	$1.40	$1.69	$2.07	$2.37	$3.05	$3.46	$3.16	-8.7%

Total Debt$7.6B

Cash & Equiv.$1.1B

Net Debt$6.5B

3 min read

1. THE BIG PICTURE

Brown & Brown is currently a business in transition, shifting from a steady insurance broker into an aggressive, debt-fueled consolidator. While the acquisition of Accession has successfully inflated top-line revenue, it has simultaneously burdened the balance sheet with $7.6 billion in debt and coincided with a contraction in Brown & Brown's existing organic business.

2. WHERE THE RISKS HIT HARDEST

The "cultural DNA" and decentralized meritocracy that Brown & Brown cites as a core advantage (10-K Item 1) is directly threatened by the sheer scale of recent M&AM&AMergers & Acquisitions — the buying, selling, or combining of companies. Integrating 5,794 new teammates through 43 separate acquisitions in 2025 creates a massive cultural absorption risk that could dilute the "ownership mindset" management prizes. Furthermore, Brown & Brown’s "customer-first approach" is geographically vulnerable; with 16% of revenue tied to Florida and 10% to the United Kingdom, localized regulatory shifts or natural disasters in these hubs could disproportionately impair the cash flows needed to service its new $7.6 billion debt pile (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a stark divergence between headline growth and underlying health. Total revenue jumped 35.7% in the final quarter of 2025, yet organic revenue—the measure of growth excluding acquisitions—actually fell by 2.8% (8-K). This suggests the core business is shrinking, leaving Brown & Brown entirely dependent on its $113 million integration program to manufacture growth. While Brown & Brown maintains a healthy 18.7% net margin, this is a retreat from the 20.7% seen a year earlier, reflecting the weight of acquisition costs and higher interest expenses (XBRL). Sentiment is also becoming cautious: short interest has reached 16.8 million shares, representing 6.3% of the float (Yahoo Finance), suggesting a segment of the market is betting that the integration of Accession will be more painful than management admits.

4. IS IT WORTH IT AT THIS PRICE?

At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 13.8x, Brown & Brown is trading in line with the peer median of 14.3x (Yahoo Finance). This valuation appears fair rather than opportunistic. (CAPM analysis) indicates the market is pricing in a long-term growth rate of just 1.7%. Given that Brown & Brown achieved 22.8% total revenue growth over the last twelve months (XBRL), this 1.7% target seems conservative. However, the justification for this price rests entirely on Brown & Brown’s ability to reverse its -2.8% organic revenue trend. If organic growth remains negative, the justified multiple would likely contract toward the levels of slower-growing peers like Willis Towers Watson (13.0x). Investors are currently paying a standard market rate for a company that has significantly higher leverage than its historical average.

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if organic revenue growth returns to positive territory for two consecutive quarters, proving the Q4 2025 decline was a one-time anomaly rather than a structural decay.
Cautious if acquisition and integration costs, which totaled $113 million in 2025, continue to rise in 2026, suggesting the Accession merger is more complex or less synergistic than projected (8-K).

6. BOTTOM LINE

Structural Advantage: A unique ownership culture where 20% of Brown & Brown is held by teammates, theoretically aligning employee performance with shareholder returns. Bottom Line: Brown & Brown is a high-margin operator currently obscured by heavy debt and a worrying dip in organic sales; it is a hold until integration costs stabilize.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Acquisition Integration: Brown & Brown may fail to realize the anticipated benefits and synergies of the Accession transaction, or the process may disrupt existing operations, potentially decreasing or delaying the expected accretive effect on results of operations and cash flows.
Indebtedness: The $7,613 million in total debt incurred to finance the Accession transaction reduces Brown & Brown’s flexibility to respond to economic conditions and increases the cash required for interest payments.
Geographic Concentration: Approximately 16% of annual revenue is derived from Florida, with significant portions also in Michigan (9%), Massachusetts (8%), California (6%), New York (6%), Georgia (5%), and the United Kingdom (10%), making Brown & Brown highly susceptible to regional regulatory changes, economic downturns, or natural disasters.
Personnel Retention: Brown & Brown’s success depends on attracting and retaining skilled employees; the loss of key personnel or executive officers could negatively impact the ability to retain business, generate new revenue, and innovate.
Cybersecurity: Brown & Brown relies on information technology and third-party vendors to process sensitive data; a breach or system interruption could lead to reputational harm, loss of customers, regulatory scrutiny, and significant compliance costs.

2. Company-Specific Risks

Captive Insurance Underwriting: Through the acquisition of Accession, Brown & Brown is exposed to underwriting risks associated with captive insurance companies and potential liabilities from pending litigation against subsidiary Oxford Risk Management Group LLC regarding the 2024 restructuring of financial guarantee policies.
Goodwill Impairment: Brown & Brown carries $15 billion of goodwill on its balance sheet; a significant decline in market capitalization or future cash flows could necessitate a write-down, resulting in material charges to operating results.
Internal Control Limitations: Due to inherent limitations in control systems, Brown & Brown’s disclosure and internal controls may not prevent all errors or fraud, potentially leading to undetected material issues.
Shareholder Control: Executive officers, directors, and their family members beneficially own approximately 13.1% of outstanding common stock, with J. Hyatt Brown and his sons controlling 12.6%, granting them significant influence over board elections and shareholder matters.

3. Regulatory/Legal Risks

IRS Oversight: Accession’s advisory services business, which assists customers with captive insurance companies leveraging Section 831(b) of the Internal Revenue Code, is subject to IRS audit and oversight; disallowance of these elections could harm Brown & Brown’s financial condition.
Data Privacy: Brown & Brown is subject to evolving global regulations like the GDPR and the California Consumer Privacy Act; failure to comply could result in penalties, such as up to 4% of worldwide revenue under GDPR.
ESG Scrutiny: Increasing pressure from regulators and investors regarding ESG practices exposes Brown & Brown to risks of "greenwashing" accusations, litigation, and reputational damage if Brown & Brown fails to meet stakeholder expectations.
Errors and Omissions: Brown & Brown faces potential liability for errors and omissions in the placement or servicing of insurance, which could involve large damage awards and significant legal costs.

4. Financial Impact Map

Acquisition of Accession → Cash Flows → Potential decrease or delay in anticipated accretive effects. Financing Indebtedness ($7,613 million) → Interest Expense → Material increase in cash resources required for debt service. Geographic Concentration (e.g., 16% Florida revenue) → Results of Operations → Exposure to localized natural disasters and regulatory changes. Personnel Retention → Revenue/Innovation → Potential loss of existing business and inability to generate new business. Goodwill ($15 billion) → Operating Results → Potential for material impairment charges if fair value falls below carrying value.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Jan 2026	—
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—