Article ID: b987a4e8e912ea83fca30fce47ad9f4b4f8ba541249ba0d9c8e97675f8ac5565
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: trafilatura
URL: https://www.businessinsurance.com/brown-to-continue-fighting-howden-on-recruiting/
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Fourth-quarter revenue at Brown & Brown jumped on the back of acquisitions including the broker’s largest ever as organic revenue declined year-over-year. The 2.8% drop in organic revenue was primarily tied to $28 million in flood claims-processing revenue recognized in fourth-quarter 2024, brokerage President and CEO J. Powell Brown said during a results call with analysts Tuesday. Mr. Powell also addressed the broker’s ongoing recruiting dispute with rival Howden. “First and foremost, we believe in competition. That’s what makes great companies, great leaders and great individuals. We also believe in integrity, honesty, loyalty and trust. However, when a startup broker conducts what appears to be a highly coordinated plan to lift entire teams from its competitors, taking information and customers in the process, it must be addressed,” Mr. Brown said. “As of today, approximately 275 of our former teammates have joined this startup, taking with them customers currently representing known annual revenues of $23 million. As we’ve done in the past, we will defend our rights in court, and already have obtained an injunction,” he said. The company’s revenues increased 35.7% to $1.6 billion, largely on the back of acquisitions, including its biggest deal ever, the $9.83 billion August purchase of Accession Risk Management Group, the parent company of Risk Strategies and One80 Intermediaries. Brown & Brown completed six acquisitions in the fourth quarter with annual revenue of $29 million and 43 deals with annual revenue of $1.8 billion in full-year 2025. Net income rose 25.7% to $264 million. Investment income increased 17.4% to $27 million. Revenue in the retail segment increased 44% to $920 million. Specialty distribution segment revenue rose 27% to $678 million. Commercial insurance pricing was fairly similar to the third quarter, Mr. Brown said, with casualty and catastrophe property pricing the outliers at opposite end of the spectrum. Rates in the admitted property/casualty market moderated slightly compared with the third quarter, he said. Non-catastrophe property rates were down 5% to up 5% depending on loss experience, with the blended rate relatively flat for the quarter. Excess and surplus property rates declined 15% to 30%, driven by “the availability of capital and lower insured storm losses,” Mr. Brown said. In casualty lines, rates increased 3% to 6% for primary layers. Excess casualty rates were up 5%- to 10%. For full-year 2025, revenues increased 22.8% to $5.9 billion. Full-year net income rose 6.1% to $1.1 billion. Brown & Brown stock was down about 7% late this morning. Shares in other major brokers also were down, with The Baldwin Group down about 8%, Arthur J. Gallagher & Co. off over 5% and Marsh and Aon each down over 3%.
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