Diversified insurance agency Brown & Brown, Inc. (BRO), Monday said its second quarter profit increased marginally from the year ago quarter, ahead of analysts' estimate. Revenues for the quarter also advanced from the prior year quarter.
Tampa, Florida-based Brown & Brown's net income for the second quarter increased marginally to $40.668 million from $40.398 million, while earnings per share was $0.29 per share, flat with last year.
On average, thirteen analysts polled by Thomson Reuters expected earnings of $0.28 per share for the second quarter. Analysts' estimate typically exclude special items such as one-time charges or gains.
Total revenues for the second quarter increased to $246.369 million from $241.720 million in the same quarter a year ago, primarily helped by an increase in commission and fees. Analysts expected revenues of $250.24 million for the quarter.
Commission and fees for the second quarter increased to $244.595 million from $238.835 million in the same quarter a year ago.
Investment income for the second quarter declined to $460 thousand from $1.909 million in the same quarter a year ago. Other income for the second quarter increased to $1.314 million from $976 thousand in the same quarter a year ago.
Total expenses for the second quarter increased to $179.390 million from $175.126 million in the same quarter last year.
For the six-months period, net income declined to $88.680 million or $0.63 per share from $92.158 million or $0.65 per share in the same quarter a year ago.
Total revenues for the period, however, increased to $509.949 million from $498.435 million in the same quarter last year.
Commenting on the results, Powell Brown, president and chief executive officer, Brown & Brown said, "This insurance market continues to be challenging due principally to the current economic environment. However, by delivering for our existing clients and securing new business, we were able to sustain our revenues and earnings quarter over quarter."
BRO closed Friday's trading at $19.32 on a volume of 0.588 million shares.
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