Brown & Brown Q2 Earnings Beat Estimates, Commission and Fees Up Y/Y

Brown & Brown, Inc.’s BRO second-quarter 2025 adjusted earnings of 1.03 per share beat the Zacks Consensus Estimate by 4%. The bottom line increased 10.8% year over year.

The quarterly results reflected improved organic revenues, expanded EBITDAC margin and increased net investment income, offset by higher expenses.

Q2 Details

Total revenues of $1.3 billion beat the Zacks Consensus Estimate by 0.7%. The top line improved 9.1% year over year. The upside can be primarily attributed to commission and fees, which grew 7.7% year over year to $1.2 billion. Our estimate for commission and fees growth was 8.5%.

Brown & Brown, Inc. Price, Consensus and EPS Surprise

Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote

Organic revenues improved 3.6% year over year to $1.2 billion in the quarter under review.

Investment income increased year over year to $36 million. The Zacks Consensus Estimate for the metric was pegged at $18.6 million, and our estimate was $22.9 million.

Adjusted EBITDAC was $471 million, up 12.1% year over year. EBITDAC margin expanded 100 basis points (bps) year over year to 36.7%. Our estimate for adjusted EBITDAC was $434.5 million.

Total expenses increased 17.1% year over year to $974 million due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation, and interest. Our estimate was $960.8 million.

Financial Update

Brown & Brown exited the second quarter with cash and cash equivalents of $8.9 billion, which increased more than 13-fold from the 2024-end level.

Long-term debt was $7.5 billion as of June 30, 2025, up 107.5% from the 2024-end level.

Net cash provided by operating activities in the first half of 2025 was $538 million, up 44.2% year over year.

Dividend Update

The board of directors approved a regular quarterly cash dividend of 15 cents per share to be paid out on Aug. 20, 2025, to shareholders of record as of Aug. 13.

Zacks Rank

Brown & Brown currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

First American Financial FAF reported a second-quarter 2025 operating income per share of $1.53, which beat the Zacks Consensus Estimate by 9.3%. The bottom line increased 20.5% year over year. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%. Operating revenues of $1.8 billion increased 14.2% year over year due to higher direct premiums and escrow fees, agent premiums, as well as information and other and net investment income. The top line beat the Zacks Consensus Estimate by 5%.

Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.

Kinsale Capital Group KNSL delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the Zacks Consensus Estimate of $434 million. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 million. Gross written premiums of $555.5 million rose 4.9% year over year, driven by strong submission flow from brokers and a favorable pricing environment. Our estimate was $623.1 million.Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million.

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