Insurance Brokers Stocks Q3 Earnings: Brown & Brown (NYSE:BRO) Firing on All Cylinders

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Brown & Brown (NYSE:BRO) and the best and worst performers in the insurance brokers industry.

The insurance brokerage industry, while influenced by insurance pricing cycles, benefits from durable secular tailwinds as rising risk complexity (climate, data privacy), regulatory scrutiny, and insurance pricing inflation. These increase demand for professional risk-management advice. Brokers operate models that rely on commissions and fees tied to premium volumes and growing contributions from recurring advisory, benefits, and compliance services. Scale is a key advantage, enabling better carrier access, stronger data and benchmarking, and efficient deployment of technology and compliance investments, which in turn supports ongoing industry consolidation. The headwinds are labor intensity and wage inflation for producers, regulatory complexity (this cuts both ways, as you can see), and execution risk when integrating new digital tools into legacy workflows.

The 5 insurance brokers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q3: Brown & Brown (NYSE:BRO)

With roots dating back to 1939 and operations spanning 44 U.S. states and 14 countries, Brown & Brown (NYSE:BRO) is an insurance brokerage and risk management firm that markets and sells insurance products across property, casualty, and employee benefits sectors.

Brown & Brown reported revenues of $1.61 billion, up 35.4% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and revenue estimates.

Brown & Brown pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 9.1% since reporting and currently trades at $79.75.

Read why we think that Brown & Brown is one of the best insurance brokers stocks, our full report is free.

Ryan Specialty (NYSE:RYAN)

Founded in 2010 by insurance industry veteran Patrick Ryan, Ryan Specialty (NYSE:RYAN) is a wholesale insurance broker and underwriting manager that helps retail brokers place complex or hard-to-place risks with insurance carriers.

Ryan Specialty reported revenues of $754.6 million, up 24.8% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with an impressive beat of analysts’ organic revenue estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $51.18.

Is now the time to buy Ryan Specialty? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Arthur J. Gallagher (NYSE:AJG)

Founded in 1927 and operating in approximately 130 countries through direct operations and correspondent networks, Arthur J. Gallagher (NYSE:AJG) provides insurance brokerage, reinsurance, consulting, and third-party claims settlement services to businesses and individuals worldwide.

Arthur J. Gallagher reported revenues of $3.37 billion, up 21.2% year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Arthur J. Gallagher delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.4% since the results and currently trades at $255.77.

Read our full analysis of Arthur J. Gallagher’s results here.

Baldwin Insurance Group (NASDAQ:BWIN)

Rebranded from BRP Group in May 2024, Baldwin Insurance Group (NASDAQ:BWIN) is an independent insurance distribution company that provides tailored insurance, risk management, and employee benefits solutions to businesses and individuals.

Baldwin Insurance Group reported revenues of $365.4 million, up 7.8% year on year. This number topped analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also produced a narrow beat of analysts’ revenue estimates but organic revenue in line with analysts’ estimates.

Baldwin Insurance Group had the slowest revenue growth among its peers. The stock is up 10.4% since reporting and currently trades at $26.15.

Read our full, actionable report on Baldwin Insurance Group here, it’s free.

Marsh & McLennan (NYSE:MMC)

With roots dating back to 1871 and a presence in over 130 countries, Marsh & McLennan (NYSE:MMC) is a global professional services firm that helps organizations manage risk, strategy, and workforce challenges through its four specialized businesses.

Marsh & McLennan reported revenues of $6.35 billion, up 11.5% year on year. This print met analysts’ expectations. It was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates.

The stock is down 2.1% since reporting and currently trades at $182.60.

Read our full, actionable report on Marsh & McLennan here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.