Brown & Brown Inc (BRO) Reports Strong Q3 2023 Earnings with 15.1% Revenue Increase
Brown & Brown Inc (NYSE:BRO) reports Q3 2023 total revenues of $1,067.7 million, a 15.1% increase compared to Q3 2022.
Organic Revenue growth for the quarter was 9.6%.
Diluted net income per share increased to $0.62, with Diluted Net Income Per Share - Adjusted increasing to $0.71.
Net income for Q3 2023 was $175.9 million, a 9.2% increase from Q3 2022.
On October 23, 2023, Brown & Brown Inc (NYSE:BRO) announced its unaudited financial results for the third quarter of 2023. The company reported total revenues of $1,067.7 million, marking a significant increase of 15.1% compared to the same period in the prior year. The increase in revenues was driven by a 13.4% increase in commissions and fees and a 9.6% increase in Organic Revenue.
Financial Highlights
Income before income taxes for Q3 2023 was $242.3 million, an 11.1% increase from Q3 2022. However, the Income Before Income Taxes Margin decreased to 22.7% from 23.5%. Adjusted EBITDAC was $370.3 million, a 27.0% increase from Q3 2022, with the EBITDAC Margin - Adjusted increasing to 34.7% from 31.2%. Net income for the quarter was $175.9 million, a 9.2% increase, and diluted net income per share increased to $0.62, an 8.8% increase. The Diluted Net Income Per Share - Adjusted increased to $0.71, a 42.0% increase compared to Q3 2022.
For the nine months ended September 30, 2023, revenues under GAAP were $3,230.9 million, a 20.9% increase compared to the same period in 2022. Net income for the period was $601.8 million, a 14.3% increase, with diluted net income per share increasing to $2.11, a 14.1% increase. The Diluted Net Income Per Share - Adjusted increased to $2.23, a 25.3% increase compared to the same period in 2022.
CEO Commentary
J. Powell Brown, president and chief executive officer of Brown & Brown Inc (NYSE:BRO), commented on the results, stating,
We had another outstanding quarter and are winning a substantial amount of net new business that drove Organic Revenue growth of 9.6% for the quarter and over 11% year to date.
Financial Tables Summary
The company's financial tables showed a consistent increase in commissions and fees, contributing to the overall growth in total revenues. The reconciliation of commissions and fees to Organic Revenue showed a growth of 9.6% for Q3 2023 and 11.1% for the nine months ended September 30, 2023.
The company's consolidated balance sheet as of September 30, 2023, showed total assets of $13,983.0 million, slightly up from $13,973.5 million as of December 31, 2022. The company's total liabilities and shareholders' equity also stood at $13,983.0 million as of September 30, 2023.
The consolidated statements of cash flows for the nine months ended September 30, 2023, showed net cash provided by operating activities of $704.1 million, an increase from $599.8 million for the same period in 2022.
Outlook
Despite the challenges posed by the global economic environment, Brown & Brown Inc (NYSE:BRO) has demonstrated strong performance in Q3 2023. The company's strategic initiatives and focus on organic growth have contributed to its robust financial results. As the company continues to navigate the evolving market conditions, it remains committed to delivering value to its shareholders.
This article first appeared on GuruFocus.
