Brown & Brown, Inc.’s BRO first-quarter 2022 adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate by 4%. The bottom line improved 11.4% year over year.
The results reflect improved organic growth and higher commissions and fees, partly offset by higher expenses.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Q1 in Details
Total revenues of $904.7 million outpaced the Zacks Consensus Estimate by 1.3%. The top line improved 11% year over year. The upside can primarily be attributed to increased commission and fees.
Commissions and fees grew 11.1% year over year to $904.3 million. Organic revenues improved 7.8% to $846.4 million in the quarter under review.
Investment income decreased 33.3% year over year to $0.2 million.
EBITDAC was $319.1 million, up 9.4% year over year. EBITDAC margin contracted 50 basis points year over year to 35.3%.
Total expenses increased 11% to $639.7 million, courtesy of a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest expenses.
Brown & Brown exited first-quarter 2022 with cash and cash equivalents of $1.7 billion, up more than two-fold from the 2021-end level.
Long-term debt of $3.5 billion as of Mar 31, 2022 was up 76.6% from 2021 end.
Net cash provided by operating activities in the first quarter was $103.6 million, down 24.9% year over year.
Concurrent with the earnings release, Brown & Brown declared a cash dividend of 10.25 cents per share for the first quarter. The dividend will be paid out on May 18, 2022 to shareholders of record as of May 9.
Brown & Brown currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Insurers
RLI Corp. RLI reported first-quarter 2022 operating earnings of $1.43 per share, beating the Zacks Consensus Estimate by 40.2%. The bottom line improved 64.4% from the prior-year quarter.
Gross premiums written increased 22% year over year to $359.2 million. This uptick can be attributed to the solid performance of Casualty (up 14.3%), Surety (up 47%) and Property segments (up 7.2%). Net investment income increased about 9% year over year to $17.9 million.
The Travelers Corporation, Inc. TRV reported first-quarter 2022 core income of $4.22 per share, which beat the Zacks Consensus Estimate by 14%. The bottom line increased 54.6% year over year.
Net written premiums increased 11% year over year to $8.4 billion, driven by strong retention rates, higher new business premiums and positive renewal premium changes across all the segments.
The Progressive Corporation’s PGR first-quarter 2022 earnings per share of $1.12 missed the Zacks Consensus Estimate of $1.24. Also, the bottom line declined 34.9% from the year-ago quarter.
Net premiums written were $13.2 billion in the quarter, up 12% from $11.7 billion a year ago. Net premiums earned grew 13% to nearly $11.8 billion.
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