Q4 Earnings Highs And Lows: Brown & Brown (NYSE:BRO) Vs The Rest Of The Insurance Brokers Stocks

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 slower Q4. As a group, revenues missed 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.

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 35.7% year on year. This print fell short of analysts’ expectations by 2.2%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ organic revenue estimates.

Brown & Brown pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 3.8% since reporting and currently trades at $72.42.

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

Best Q4: Marsh & McLennan (NYSE:MRSH)

With roots dating back to 1871 and a presence in over 130 countries, Marsh & McLennan (NYSE:MRSH) 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 $6.60 billion, up 8.7% year on year, outperforming analysts’ expectations by 0.7%. The business had a strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ organic revenue estimates.

Marsh & McLennan scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $184.93.

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

Weakest Q4: 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 $751.2 million, up 13.2% 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.

Ryan Specialty delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.3% since the results and currently trades at $39.38.

Read our full analysis of Ryan Specialty’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 $347.3 million, up 5.3% year on year. This result lagged analysts' expectations by 1.4%. Overall, it was a slower quarter as it also logged a slight miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Baldwin Insurance Group had the slowest revenue growth among its peers. The stock is up 20.9% since reporting and currently trades at $22.35.

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

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 $3.61 billion, up 34.8% year on year. This print was in line with analysts’ expectations. However, it was a mixed quarter as it underperformed in some other aspects of the business.

The stock is down 7.1% since reporting and currently trades at $228.46.

Read our full, actionable report on Arthur J. Gallagher here, it’s free.

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