Brown & Brown reports higher quarterly adjusted profit, but its shares slide as growth slows — a mixed message that shaped investor reaction after the insurance broker released its latest earnings.
Brown & Brown posted a solid rise in fourth-quarter adjusted profit, supported by stronger commissions and fee income. Yet the market focused less on the earnings beat and more on signs of slowing momentum. The company’s shares fell nearly 6% after organic revenue dipped to $1.08 billion for the three months ended December 31, down from $1.11 billion a year earlier.
Despite the softer organic growth, the broader insurance environment remains supportive. Demand for coverage has climbed as households and businesses seek protection from escalating climate-related disasters and cyber threats. Those trends have continued to benefit brokerage firms like Brown & Brown, which specialize in risk management and customized insurance solutions.
According to Swiss Re Institute, global insured losses from natural disasters crossed the $100 billion mark in 2025 for the sixth consecutive year — a reminder of why insurers and brokers are seeing sustained interest in their services.
Against that backdrop, Brown & Brown delivered strong operational results. Commissions and fees surged 36% to $1.58 billion in the quarter, helping total revenue rise sharply to $1.61 billion from $1.18 billion a year earlier. Investment and other income also edged higher, reaching $27 million compared with $23 million a year ago, as insurers continued to earn returns by investing premium capital in low-risk assets such as government bonds.
Industry peers reported similarly encouraging performances. Travelers exceeded profit expectations on stronger underwriting, while W. R. Berkley posted higher earnings driven by steady underwriting results — underscoring resilience across the sector.
Brown & Brown, which acts as an intermediary between insurers and policyholders and works with multiple carriers, reported adjusted earnings of 93 cents per share, up from 86 cents a year earlier.
Still, the decline in organic revenue growth raised concerns about the pace of expansion going forward. Even as profits improved, investors appeared cautious about whether the firm can sustain its growth trajectory in a competitive and rapidly evolving insurance market.
