Brown & Brown Q3 Earnings & Revenues Beat Estimates, Dividend Raised

Brown & Brown, Inc.’s BRO third-quarter 2025 adjusted earnings of $1.05 per share beat the Zacks Consensus Estimate by 16.6%. The bottom line increased 15.4% year over year.

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

BRO’s Q3 Details

Total revenues of $1.6 billion beat the Zacks Consensus Estimate by 6.6%. The top line improved 35.4% year over year. The upside can be primarily attributed to commission and fees, which grew 34.2% year over year to $1.5 billion, as well as higher investment and other income. Our estimate for commission and fees growth was 21.9%. The Zacks Consensus Estimate is pegged at $1.4 billion. 

Organic revenues improved 3.5% to $1.2 billion in the quarter under review.

Investment and other income increased 80.6% year over year to $56 million. Our estimate was $36.4 million.

Adjusted EBITDAC was $587 million, up 41.8% year over year. EBITDAC margin expanded 170 basis points (bps) year over year to 36.6%. Our estimate for adjusted EBITDAC was $483.7 million.

Total expenses increased 49% to $1.3 billion due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation, mark-to-market of escrow liability, and interest. Our estimate was $1.2 billion.

Financial Update of BRO

Brown & Brown exited the third quarter with cash and cash equivalents of $1.2 billion, which increased 76.2% from the 2024-end level. 

Long-term debt was $7.6 billion as of Sept. 30, 2025, more than double from the 2024-end level.

Net cash provided by operating activities in the first nine months of 2025 was $1 billion, up 23.7% year over year.

Capital Deployment

The board of directors declared a 10% increase to its quarterly dividend to 16.5 cents per share. The dividend will be paid out on Nov. 12, 2025, to shareholders of record at the close of business on Nov. 5, 2025. The dividend hike marks Brown & Brown’s 32nd consecutive annual dividend increase.

The board has also authorized the purchase of up to an additional $1.25 billion of shares. With this authorization, Brown & Brown will have outstanding approval to purchase up to approximately $1.5 billion of BRO's outstanding common stock.

Zacks Rank

BRO carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Chubb Limited CB reported third-quarter 2025 core operating income of $7.49 per share, which beat the Zacks Consensus Estimate by 26%. The bottom line increased 30.9% year over year. Net premiums written improved 7.5% year over year to $14.8 billion in the quarter. Our estimate was $14.4 billion while the Zacks Consensus Estimate was pegged at $14.5 billion. 

Pre-tax net investment income was $1.65 billion, up 9.3% year over year. Our estimate and the Zacks Consensus Estimate were both pegged at $1.8 billion. Revenues of $16.1 billion beat the consensus estimate by 1.6% and improved 7.4% year over year. Property and casualty underwriting income was $2.2 billion, up 55% year over year. The Zacks Consensus Estimate was pegged at $1.4 billion. 

The Travelers Companies, Inc. TRV reported third-quarter 2025 core income of $8.14 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line increased 55% year over year. Travelers’ total revenues increased 5% from the year-ago quarter to $12.44 billion, primarily driven by higher premiums, net investment income, fee income and other revenues. The top-line figure beat the Zacks Consensus Estimate by 0.7%.

Net written premiums increased 1% year over year to a record $11.47 billion. The underwriting gain doubled year over year to $1.4 billion. The consolidated underlying combined ratio of 83.9 improved 170 bps year over year. The combined ratio improved 590 bps year over year to 87.3 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development.

W.R. Berkley Corporation's WRB third-quarter 2025 operating income of $1.10 per share beat the Zacks Consensus Estimate of $1.03 by 2.8%. The bottom line increased 18.3% year over year. Operating revenues came in at $3.6 billion, up 8.2% year over year, on the back of higher net premiums earned as well as improved net investment income and higher insurance service fees. The top line beat the consensus estimate by 0.4%.

W.R. Berkley’s net premiums written were $3.4 billion, up 5.5% year over year. Our estimate was $3.3 billion.  The consolidated combined ratio (a measure of underwriting profitability) remained flat year over year at 90.9. The Zacks Consensus Estimate was pegged at 89.6.

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