Insurance brokerage company Brown & Brown's Q 2 results were mixed, with revenue soaring by 30% but organic growth weak
The second-quarter financial report released by insurance brokerage company Brown & Brown on Tuesday showed that driven by the acquisition of Accession, total revenue surged 30.4% year-on-year to approximately US$1.7 billion. However, after excluding the impact of acquisitions and contingent commissions, core organic revenue declined and profits were slightly lower than market expectations. The financial report showed that the company's total revenue for the quarter was US$1.68 billion, exceeding analysts' expectations of US$1.67 billion. Adjusted earnings per share were $1.07, a year-on-year increase of 3.9%, but slightly lower than market expectations of $1.08. Adjusted EBITDAC margin fell 100 basis points year over year to 35.7%. Revenue growth was mainly driven by the acquisition of Accession completed in 2025, which contributed approximately US$410 million in revenue during the quarter. However, if the effects of acquisitions, disposals and contingent commissions are excluded, organic revenue fell by 0.7% year-on-year; after including contingent commissions, organic revenue increased by 0.7%. The performance of the two major business segments is divergent. The retail business performed solidly, with organic revenue (including contingent commissions) growing by 2.5%. The professional distribution business fell by 1.6% (including contingent commissions), mainly affected by the continued decline in catastrophe property insurance rates (down 15% to 35%) and the delayed recognition of approximately US$10 million in new business. The company is taking a number of initiatives to boost performance. On the one hand, it cooperates with Anthropic, McKinsey, etc. to promote AI strategies with the goal of improving sales and service efficiency. On the other hand, the company expects organic growth to improve in the second half of the year, with retail business (excluding contingent commissions) expected to grow by 1.5% to 2.5% and professional distribution business expected to grow by 2% to 4%.