Brown & Brown: 10 Years of Record Earnings

Brown & Brown Inc. announced record earnings for 2002, making it the 10th consecutive record year for the Florida-based company. Net income rose to $83,122,000, or $1.22 per share, an increase of 54.2 percent over the $53,913,000, or $0.85 per share earned in year 2001. Total revenues for the year rose to $455,742,000, up 24.9 percent versus the $365,029,000 achieved in 2001.

Fourth quarter 2002 net income increased to $21,380,000, or $0.31 per share, compared with the 2001 fourth quarter net income of $15,215,000, or $0.24 per share, a 40.5 percent increase. Total revenue for the 2002 fourth quarter was $119,147,000, compared to 2001 fourth quarter revenue of $95,877,000, a 24.3 percent increase.

“When we became publicly owned in 1993, a commitment was made to grow at least 15 percent per quarter, ad infinitum. For 10 years, we have delivered on that commitment!” noted chairman and CEOr, J. Hyatt Brown. “Our commitment for continued exceptional earnings growth was exemplified by our 46 percent EPS growth in 2001 followed by 2002’s 44 percent EPS growth. Because of our operating systems and the quality of our people, Brown & Brown is well positioned to continue to deliver outstanding results. Four years ago we announced our goal to record a 28 percent pre-tax margin by 2002. We have achieved that goal. The stage is now set to accomplish our next goal, in the not too distant future, of a billion dollars in revenue and a 40 percent operating margin (pre-tax income with interest and amortization expense added back).”

Jim W. Henderson, president and chief operating officer added, “We continue to see ever increasing opportunity for new merger and acquisition relationships that should continue our external growth. At the same time, we anticipate the continuation of firm insurance rates and rationed capacity, to help us maintain favorable internal growth through 2003, and probably beyond.”

Topics Profit Loss