Posted on 21 Apr 2010
Diversified insurance agency and brokerage firm Brown & Brown Inc. reported this week its first quarter profit declined from last year, hurt by lower revenues as the economy continues to negatively impact middle-market industries. Earnings for the quarter came in ahead of analysts' estimate by a cent, while revenues also beat expectations.
The Daytona Beach, Florida-based company reported net income for the first quarter of $44.3 million or $0.31 per share, compared to $48.01 million or $0.34 per share in the year-ago quarter.
On average, thirteen analysts polled by Thomson Reuters expected the company to earn $0.30 per share for the quarter. Analysts estimates typically exclude special items.
Revenues for the quarter decreased to $252.27 million from $263.58 million in the prior-year quarter. Eight analysts had a revenue consensus of $250.24 million for the first quarter.
Commenting on the results, Brown & Brown's president and chief executive officer, Powell Brown said, "The economy continues to negatively impact middle-market industries. Excluding our Proctor Financial, Inc. subsidiary, we fared incrementally better in the first quarter of 2010 than in the first quarter of 2009. Shrinking insurable exposure units continue to impact our results."
In the immediately preceding quarter, Brown & Brown reported a 29% decline in profit from a year ago, as a result of 8% lower revenues. The company reported net income of $23.7 million or $0.17 per share on revenues of $214.16 million in the fourth quarter.
Segment wise, Brown & Brown's commissions and fees for the first quarter decreased to $ 250.67 million from $263.96 million in the same quarter last year, while investment income for the quarter grew to $331 thousand from $310 thousand last year. Other income for the first quarter totaled $1.27 million, compared to a loss of $694 thousand in the prior-year quarter.
Total expenses for the quarter eased to $179.19 million from $184.37 million in the first quarter of 2009.