Brown & Brown (NYSE:BRO) Stock, Quote.Headers.trade-ideas

Brown & Brown

Brown & Brown Inc is an insurance agent and broker that offers insurance products and services, primarily in the areas of property, casualty, and employee benefits, by connecting customers with insurance companies. It earns its revenue via commissions from insurance companies and direct fees from customers, and it generally has no underwriting risk exposure. More than half of its revenue is from its retail segment, which provides a broad range of insurance products and services to entities and individuals. Roughly a fourth of revenue is from its national programs segment, which provides, among other things, professional liability coverage for professionals. The company operates primarily in the United States, with its highest exposure in Florida.

Earnings

Earnings Beats

Large Cap

News

Dividends

Small Cap

Management

Markets

Analyst Ratings

Trading Ideas

Shares of Employers Holdings, Inc. (NYSE: EIG) have declined 5.8% since it reported second-quarter 2024 results on Jul 31, after the closing bell. The better-than-expected earnings were aided by growth in premiums written, policies in force and higher yields on fixed maturity securities.

Employers Holdings Drops 5.8% Despite Q2 Earnings Beat

Mid Cap

RYAN

Brown &amp; Brown, Inc.&#39;s (NYSE: BRO) shares have jumped 40% year to date (YTD) compared with the industry&#39;s growth of 20.6%. The Finance sector and the Zacks S&amp;P 500 composite have risen 7.7% and 12.3%, respectively, in the same time frame.

Brown &amp; Brown Gains 40% YTD: Will the Rally Last?

London,,United,Kingdom,-,October,05,,2018:,Screenshot,Of,Robinhood

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This Robinhood Analyst Turns Bullish; Here Are Top 5 Upgrades For Monday

Brown & Brown Inc

BROOKFIELD OFF PTY AAA R by Brookfield Office Properties Inc.

Brookfield Office Properties Inc

Baron Energy Inc

Brooge Energy Ltd

BROOKFIELD PFD A SER 23 by Brookfield Office Properties Inc.

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BROOKFIELD CORP PFD A 37 by BROOKFIELD CORP.

Brookfield Corp

Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) has outperformed the market over the past 5 years by 10.72% on an annualized basis producing an average annual return of 23.55%. Currently, Brown &amp; Brown has a market capitalization of $29.42 billion. 
Buying $1000 In BRO: If an investor had bought $1000 of BRO stock 5 years ago, it would be worth $2,866.31 today based on a price of $103.13 for BRO at the time of writing.
<h3>Brown &amp; Brown's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1726003816_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In Brown & Brown 5 Years Ago Would Be Worth This Much Today

Barclays analyst Alex Scott initiates coverage on Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) with a Equal-Weight rating and announces Price Target of $108.

Price Target

Initiation

Barclays Initiates Coverage On Brown & Brown with Equal-Weight Rating, Announces Price Target of $108

Brown &amp; Brown's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) short percent of float has fallen 8.0% since its last report. The company recently reported that it has 2.75 million shares sold short, which is 1.15% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.4 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Brown &amp; Brown Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725472817_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Brown &amp; Brown has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Brown &amp; Brown's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Brown &amp; Brown's peer group average for short interest as a percentage of float is 3.38%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(BRO) - Analyzing Brown & Brown's Short Interest

Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) has outperformed the market over the past 5 years by 9.44% on an annualized basis producing an average annual return of 23.58%. Currently, Brown &amp; Brown has a market capitalization of $29.36 billion. 
Buying $100 In BRO: If an investor had bought $100 of BRO stock 5 years ago, it would be worth $290.56 today based on a price of $102.92 for BRO at the time of writing.
<h3>Brown &amp; Brown's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1724166019_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning Brown & Brown Stock In The Last 5 Years

Shares of&nbsp;Employers Holdings, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eig#NYSE">EIG</a>) have declined 5.8% since it reported second-quarter 2024 results on Jul 31, after the closing bell. The better-than-expected earnings were aided by growth in premiums written, policies in force and higher yields on fixed maturity securities. However, the positives were partially offset by increased overall expenses.
EIG reported second-quarter adjusted earnings per share of $1.10, which surpassed the Zacks Consensus Estimate by 1.9%. However, the bottom line fell 6% year over year.
Total revenues grew 0.8% year over year to $217 million. But the top line missed the consensus mark by 3%.
<div class="chart_embed">
<h3>Employers Holdings Inc Price, Consensus and EPS Surprise</h3>
<img alt="Employers Holdings Inc Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/a7/1723643799.png" style="border-style:solid; border-width:1px; height:310px; width:600px" title="" />
Employers Holdings Inc price-consensus-eps-surprise-chart | Employers Holdings Inc Quote
</div>
<h3>Q2 Key Updates</h3>
Gross premiums written of $207.9 million advanced 5% year over year in the quarter under review on the back of new business growth and higher renewal rates, partly offset by decreased final audit premiums. Net premiums written of $206.1 million increased 5% year over year.
Net premiums earned by Employers Holdings amounted to $187.8 million, which improved 6% year over year but lagged the Zacks Consensus Estimate by 4.6%.
Net investment income climbed 0.4% year over year to $26.9 million in the second quarter due to increased yields on fixed-maturity securities. However, the decline in invested balances of fixed-maturity securities partially offset the growth. As such, the metric missed the consensus mark by only 0.1%.
Total expenses of $177 million inched up 3.3% year over year. Losses and loss adjustment expenses recorded a 20% year-over-year rise due to growth in earned premiums and increased current accident year loss and loss adjustment expense ratio. Commission expenses grew 14% year over year.
EIG reported a pre-tax income of $40 million in the quarter under review, which fell 8.7% year over year.
Policies in force were at a record level of 128,522, which increased 3% year over year.
The combined ratio increased 380 basis points (bps) year over year to 94.2% but came lower than the Zacks Consensus Estimate of 95.5%. Underwriting and general and administrative expense ratio improved 400 bps year over year to 22%.
<h3>Financial Update (as of Jun 30, 2024)</h3>
Employers Holdings exited the second quarter with investments, cash and cash equivalents of $2.47 billion, which fell from the 2023-end level of $2.5 billion.
Total assets of $3.6 billion remained flat from 2023 end.
Total stockholders&#39; equity improved from the 2023-end level of $1.01 billion to $1.02 billion.
Adjusted book value per share was $48.89, which rose from $45.41 a year ago.
<h3>Capital Deployment Update</h3>
Employers Holdings bought back shares worth $19.2 million in the second quarter. It had a leftover capacity of $44.4 million under its repurchase authorization as of Jul 31, 2024.
Management announced a quarterly&nbsp;dividend of 30 cents for the third quarter, which will be paid on Aug 28, 2024, to shareholders as of Aug 14.
<h3>Zacks Rank &amp; Key Picks</h3>
EIG currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader&nbsp;Finance space may look at some better-ranked players like Aflac Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>), Brown &amp; Brown, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bro#NYSE">BRO</a>) and&nbsp;Marsh &amp; McLennan Companies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mmc#NYSE">MMC</a>), each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Aflac&#39;s current-year earnings is pegged at $6.73 per share, which indicates 8% year-over-year growth. It witnessed seven upward estimate revisions in the past 30 days against no downward movements. AFL beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 8.2%.
The Zacks Consensus Estimate for Brown &amp; Brown&#39;s 2024 earnings indicates 30.6% year-over-year growth. During the past month, BRO has witnessed five upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the past four quarters, with an average surprise of 9.8%.
The Zacks Consensus Estimate for Marsh &amp; McLennan&#39;s current-year earnings suggests a 9.4% year-over-year jump. During the past month, MMC has witnessed seven upward estimate revisions against none in the opposite direction. The consensus mark for current-year revenues indicates 6.7% growth from a year ago.
<a href="https://www.zacks.com/stock/news/2322186/employers-holdings-eig-drops-5-8-despite-q2-earnings-beat?cid=CS-BENZ-FT-analyst_blog|earnings_article-2322186">To read this article on Zacks.com click here.</a>

Brown &amp; Brown, Inc.&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bro#NYSE">BRO</a>) shares have jumped 40% year to date (YTD) compared with the industry&#39;s growth of 20.6%. The Finance sector and the Zacks S&amp;P 500 composite have risen 7.7% and 12.3%, respectively, in the same time frame. With a market capitalization of $28.61 billion, the average volume of shares traded in the last three months was 1.17 million.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/28/74114.jpg?v=1394791376" />
Image Source: Zacks Investment Research
The rally was largely driven by higher core commissions and fees, new business, solid retention, rate increases, strategic acquisitions, a strong financial position and effective capital deployment.
This Zacks Rank #2 (Buy) insurance broker surpassed earnings estimates in each of the last four quarters, the average being 9.82%.
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 1.6% and 1.8% north, respectively, in the past 30 days, reflecting analysts&#39; optimism on the stock.
<h3>Will the Bull Run Continue?</h3>
The Zacks Consensus Estimate for Brown &amp; Brown&#39;s 2024 earnings per share indicates an increase of 30.6% from the year-ago reported number. The consensus estimate for revenues is pegged at $4.68 billion, implying a year-over-year improvement of 10%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 8.2% and 7.5%, respectively, from the corresponding 2024 estimates.
The expected long-term earnings growth is 11%. Earnings have increased 18.4% in the past five years, better than the industry average of 13.8%.
Commissions and fees, the main component of the top line, benefit from increasing new business, strong retention and continued rate increases for most lines of coverage. The top line witnessed a five-year annual growth rate of 14%. The company met its intermediate annual revenue goal of $4 billion, doubling in the last five years.
The insurance broker continually makes investments in boosting organic growth and margin expansion. It boasts an industry-leading adjusted EBITDAC margin.
Brown &amp; Brown&#39;s strategic buyouts help it capitalize on growing market opportunities, strengthen its compelling products and service portfolio, expand global reach and accelerate its growth rate. For the second quarter of 2024, the insurance broker completed 10 acquisitions with estimated annual revenues of $13 million and continued to build relationships with many other companies.
Banking on operational expertise, BRO boasts a strong liquidity position with an improving leverage ratio. The strength of its operating model and diversity of businesses ensures strong cash conversion. The company effectively deploys cash into acquisitions, capital expenditure and wealth distribution for shareholders via dividend increases.
BRO has an impressive dividend history, raising dividends for 30 straight years. Its five-year annualized dividend growth is 10.6%, and its dividend yield is 0.5%.
<h3>Other Stocks to Consider</h3>
Some other top-ranked stocks from the insurance industry are Arthur J. Gallagher &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ajg#NYSE">AJG</a>), Willis Towers Watson Public Limited Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wtw#NASDAQ">WTW</a>) and Ryan Specialty Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ryan#NYSE">RYAN</a>), each carrying a Zacks Rank #2 at present.
Arthur J. Gallagher&#39;s earnings surpassed estimates in each of the last four quarters, the average surprise being 1.93%. Shares of AJG have jumped 25.2% YTD. The Zacks Consensus Estimate for AJG&#39;s 2024 and 2025 earnings implies year-over-year growth of 15.8% and 12%, respectively.
Willis Towers Watson&#39;s earnings surpassed estimates in each of the last four quarters, the average surprise being 7.06%. Shares of WTW have jumped 14.3% YTD. The Zacks Consensus Estimate for WTW&#39;s 2024 and 2025 earnings implies year-over-year growth of 14.6% and 11.9%, respectively.
Ryan Specialty&#39;s earnings surpassed estimates in one of the last four quarters and matched in the other three, the average surprise being 0.4%. Shares of RYAN have jumped 52.1% YTD. The Zacks Consensus Estimate for RYAN&#39;s 2024 and 2025 earnings implies year-over-year growth of 31.1% and 21.9%, respectively.
<a href="https://www.zacks.com/stock/news/2321356/brown-brown-bro-gains-40-ytd-will-the-rally-last?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2321356">To read this article on Zacks.com click here.</a>

Brown & Brown Gains 40% YTD: Will the Rally Last?

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page.</a>
<ul>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/64a548c0943f950001b31bb8/patrick-moley">Piper Sandler analyst Patrick Moley </a>upgraded Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>) from Neutral to Overweight and raised the price target from $20 to $23. Robinhood shares gained 1.1% to close at $17.92 on Friday. <a href="https://www.benzinga.com/quote/HOOD/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Jefferies analyst Samad Samana upgraded the rating for PAR Technology Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAR#NYSE">PAR</a>) from Hold to Buy, while increasing the price target from $45 to $60. PAR Technology shares gained 2.9% to close at $50.79 on Friday. <a href="https://www.benzinga.com/quote/PAR/analyst-ratings">See how other analysts view this stock.</a></li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/639748cd392e5e0001d6e958/james-shin">Deutsche Bank analyst James Shin</a> upgraded Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) from Hold to Buy and boosted the price target from $725 to $1,025. Eli Lilly shares gained 5.5% to close at $891.68 on Friday. <a href="https://www.benzinga.com/quote/LLLY/analyst-ratings">See how other analysts view this stock.</a></li>
<li>HSBC analyst Mohammed Khallouf upgraded the rating for Take-Two Interactive Software, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>) from Hold to Buy and announced a price target of $179. Take-Two shares gained 4.4% to close at $144.82 on Friday. <a href="https://www.benzinga.com/quote/TTWO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Wells Fargo analyst <a href="https://www.benzinga.com/analyst-stock-ratings/analyst/639748cd392e5e0001d6e958/james-shin">Elyse Greenspan</a> upgraded Brown &amp; Brown, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) from Equal-Weight to Overweight, while raising the price target from $94 to $112. Brown &amp; Brown shares rose 0.01% to close at $100.32 on Friday. See how other analysts view this stock. <a href="https://www.benzinga.com/quote/BRO/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Considering buying Robinhood stock? Here&#8217;s what analysts think:
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="571" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12091046/image-78-1024x571.png" alt="" class="wp-image-489789" style="width:459px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12091046/image-78-1024x571.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12091046/image-78-300x167.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12091046/image-78-768x429.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12091046/image-78.png 1258w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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The Nasdaq 100 closed higher by around 100 points during Friday's session. Investors, meanwhile, focused on some notable insider trades.
When insiders sell shares, it could be a preplanned sale, or could indicate their concern in the company's prospects or that they view the stock as being overpriced. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/">Benzinga&#8217;s insider transactions </a>platform.
<h3 class="wp-block-heading">Crocs</h3>
<ul>
<li>The Trade: Crocs, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CROX#NASDAQ">CROX</a>) Director Douglas J Treff <a href="https://www.benzinga.com/sec/insider-trades/">sold a total of 10,594 shares</a> at an average price of $132.38. The insider received around $1.4 million from selling those shares.</li>
<li>What's Happening: On Aug. 1, Crocs reported stronger-than-expected second-quarter earnings and sales.</li>
<li>What Crocs Does: Crocs Inc is engaged in the design, development, marketing, distribution, and sale of casual lifestyle footwear accessories for men, women, and children. The reportable geographic segments of the company include the Americas, Asia Pacific, and EMEA.</li>
</ul>
<h3 class="wp-block-heading">Netflix</h3>
<ul>
<li>The Trade: Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) CFO Spencer Adam Neumann <a href="https://www.benzinga.com/sec/insider-trades/">sold a total of 433 shares </a>at an average price of $626.19. The insider received around $271,140 from selling those shares.</li>
<li>What's Happening: Netflix is in damage control mode after suffering a significant security breach that led to the leak of full episodes from several highly anticipated shows.</li>
<li>What Netflix Does: Netflix&#8217;s relatively simple business model involves only one business, its streaming service.</li>
</ul>
<h3 class="wp-block-heading">Brown &amp; Brown</h3>
<ul>
<li>The Trade: Brown &amp; Brown, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) EVP, CFO and Treasurer R. Andrew Watts <a href="https://www.benzinga.com/sec/insider-trades/">sold a total of 2,500 shares</a> at an average price of $100.32. The insider received around $250,800 from selling those shares.</li>
<li>What's Happening: On Aug. 12, Wells Fargo analyst Elyse Greenspan upgraded Brown &amp; Brown from Equal-Weight to Overweight and raised the price target from $94 to $112.</li>
<li>What Brown &amp; Brown Does: Brown &amp; Brown Inc is an insurance agent and broker that offers insurance products and services, primarily in the areas of property, casualty, and employee benefits, by connecting customers with insurance companies.</li>
</ul>
<h3 class="wp-block-heading">Sirius XM</h3>
<ul>
<li>The Trade: Sirius XM Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>) Pres. &amp; Chief Content Officer Scott Andrew Greenstein <a href="https://www.benzinga.com/sec/insider-trades/">sold a total of 1,447,238 shares</a> at an average price of $3.16. The insider received around $4.6 million from selling those shares.</li>
<li>What's Happening: On Aug. 1, Sirius XM reported worse-than-expected second-quarter revenue results.</li>
<li>What Sirius XM Does: Sirius XM Holdings is composed of two businesses: SiriusXM and Pandora. SiriusXM transmits music, talk shows, sports, and news via its two satellite radio networks, primarily to consumers in vehicles who pay a subscription fee.</li>
</ul>
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Insider Trades

CROX

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Netflix, Crocs And 2 Other Stocks Insiders Are Selling

Wells Fargo analyst Elyse Greenspan upgrades Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) from Equal-Weight to Overweight and raises the price target from $94 to $112.

Wells Fargo Upgrades Brown & Brown to Overweight, Raises Price Target to $112

Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) has outperformed the market over the past 5 years by 9.76% on an annualized basis producing an average annual return of 22.31%. Currently, Brown &amp; Brown has a market capitalization of $28.18 billion. 
Buying $100 In BRO: If an investor had bought $100 of BRO stock 5 years ago, it would be worth $276.04 today based on a price of $98.79 for BRO at the time of writing.
<h3>Brown &amp; Brown's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723134621_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In Brown & Brown 5 Years Ago Would Be Worth Today

Brown &amp; Brown's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) short percent of float has fallen 7.1% since its last report. The company recently reported that it has 4.05 million shares sold short, which is 1.7% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.65 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Brown &amp; Brown Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1722970816_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Brown &amp; Brown has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Brown &amp; Brown's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Brown &amp; Brown's peer group average for short interest as a percentage of float is 3.73%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About Brown & Brown?

Brown & Brown Acquires Trade Credit Insurance Specialist CI Group, Led By Founder Mark Toulmin, To Enhance E-Bonded Platform And Expand Services For Lenders And SMEs

AMERISAFE, Inc.&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amsf#NASDAQ">AMSF</a>) shares have lost 5.3% since it reported second-quarter 2024 results on Jul 29. Investors may have been worried about weakness in underwriting results inducing a deterioration in the net combined ratio. An elevated operating expense level, resulting from an increase in loss and loss adjustment expenses incurred, underwriting and other operating costs and policyholder dividends, also contributed to the downside. Improved audit premiums partially offset the negatives.
AMSF reported second-quarter adjusted earnings per share of 58 cents, which missed the Zacks Consensus Estimate by 4.9%. Moreover, the bottom line dipped 20.5% year over year.
Operating revenues improved 3.4% year over year to $76 million. The top line beat the consensus mark by 2.4%.
<div class="chart_embed">
<h3>AMERISAFE, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="AMERISAFE, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/32/1722871229.png" style="height:265px; width:620px" title="" />
AMERISAFE, Inc. price-consensus-eps-surprise-chart | AMERISAFE, Inc. Quote
</div>
<h3>Q2 Performance</h3>
Net premiums earned of $68.6 million improved 4.6% year over year in the quarter under review and outpaced the Zacks Consensus Estimate of $66 million. The metric benefited from improved contributions from payroll audits and related premium adjustments as a result of persistent payroll strength.
Net investment income dipped 3.6% year over year to $7.4 million due to a reduced portfolio size. However, this was partially offset by improved reinvestment rates. The metric fell short of the consensus mark of $7.8 million. Fee and other losses were $75 million.
AMERISAFE reported a pre-tax underwriting profit of $6.5 million, which declined 31.2% year over year.
Total expenses escalated 10.7% year over year to $62.1 million in the second quarter.
Operating net income of $11.1 million decreased 20.2% year over year.
The net combined ratio deteriorated 510 basis points (bps) year over year to 90.5% and came higher than the consensus mark of 90%. The metric suffered due to a deteriorating net loss ratio.
<h3>Financial Update (as of Jun 30, 2024)</h3>
AMERISAFE exited the second quarter with cash and cash equivalents of $30.6 million, which declined 20.9% from the 2023-end level.
Total assets of $1.2 billion increased 0.4% from the figure in 2023-end.
Shareholders&#39; equity of $301 million grew 2.9% from the 2023-end level.
Book value per share was $15.78 as of Jun 30, 2024, which improved 3.3% from the 2023-end figure.
Return on average equity deteriorated 400 bps year over year to 14.6% in the quarter under review.
<h3>Dividend Update</h3>
Management announced a quarterly cash dividend of 37 cents per share, which will be paid out on Sep 20, 2024, to its shareholders of record as of Sep 6.
<h3>Zacks Rank</h3>
AMERISAFE currently carries a Zacks Rank #4 (Sell).
<h3>Performances of Other Insurers</h3>
Of the insurance industry players that have reported second-quarter 2024 results so far, the bottom-line results of&nbsp;Marsh &amp; McLennan Companies, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mmc#NYSE">MMC</a>),&nbsp;Brown &amp; Brown, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bro#NYSE">BRO</a>) and&nbsp;Kinsale Capital Group, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/knsl#NYSE">KNSL</a>) beat the Zacks Consensus Estimate.
Marsh &amp; McLennan reported second-quarter 2024 adjusted earnings per share of $2.41, which beat the Zacks Consensus Estimate by 0.8%. The bottom line advanced 10% year over year.&nbsp; Consolidated revenues rose 6% year over year to $6.2 billion. The figure also improved 6% on an underlying basis.&nbsp; The top line, however, fell short of the consensus mark by 1%. MMC&#39;s adjusted operating income was $1.72 billion, which grew 11% year over year. Adjusted operating margin improved 130 bps year over year to 29%.
The Risk and Insurance Services segment&#39;s revenues were $4.02 billion, which advanced 8% year over year and 7% on an underlying basis. Adjusted operating income advanced 12% year over year to $1.34 billion. Revenues of Marsh, a unit within the segment, improved 8% year over year and 7% on an underlying basis to $3.27 billion. In the United States/Canada, underlying revenues grew 6% year over year. International operations also witnessed underlying revenue growth of 7%. &nbsp;
Brown &amp; Brown&#39;s second-quarter adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line increased 17.7% year over year. Total revenues of $1.2 billion beat the consensus estimate by 3.3%. The top line improved 12.5% year over year. The upside can be primarily attributed to commission and fees, which grew 11.4% year over year to $1.1 billion.&nbsp;
Organic revenues improved 10% to $1 billion. Investment income more than doubled year over year to $22 million. Adjusted EBITDAC was $420 million, up 17.3% year over year. EBITDAC margin expanded 150 bps year over year to 35.7%.&nbsp;
Kinsale Capital delivered second-quarter net operating earnings of $3.75 per share, which outpaced the Zacks Consensus Estimate by 6.5%. The bottom line increased 30.4% year over year.&nbsp; Operating revenues jumped 45.1% year over year to $378 million. Revenues beat the consensus estimate of $377 million. Gross written premiums of $529.8 million rose 20.9% year over year. Net written premiums climbed 17.9% year over year to $430.2 million.&nbsp;
Net investment income increased 48.3% year over year to $35.8 million. Kinsale Capital&#39;s underwriting income was $76.1 million, which grew 23.6% year over year. The combined ratio deteriorated 100 bps to 77.7% in the quarter under review. The expense ratio deteriorated 10 bps to 21.1, while the loss ratio deteriorated 60 bps to 56.6.
<a href="https://www.zacks.com/stock/news/2316354/amerisafe-amsf-stock-down-5-3-since-q2-earnings-miss?cid=CS-BENZ-FT-analyst_blog|earnings_article-2316354">To read this article on Zacks.com click here.</a>

Earnings Misses

AMSF

KNSL

AMERISAFE Stock Down 5.3% Since Q2 Earnings Miss

WIIM

ACGL

Brighthouse Financial, Inc. - Common Stock

CINF

GOCO

OSCR

PLMR

RELI

SLQT

Shares of insurance companies are trading lower amid overall weakness following concerns for recently issued US economic data.

CNO Financial Group, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cno#NYSE">CNO</a>) reported second-quarter 2024 adjusted earnings per share of $1.05, which beat the Zacks Consensus Estimate by 45.8%. Moreover, the bottom line rose 94.4% year over year.
Total revenues increased 4.2% year over year to $1.07 billion in the second quarter. The top line beat the consensus mark by 16.4%.
The strong second-quarter results benefited from improved insurance product margin, premiums, and general account assets.&nbsp;However, the decline of the policyholder and other special-purpose portfolios partially offset the results.
<div class="chart_embed">
<h3>CNO Financial Group, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="CNO Financial Group, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/84/1722441570.png" style="height:265px; width:600px" title="" />
CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote
</div>
<h3>Second-Quarter Performance</h3>
Total insurance policy income of $641.5 million improved 2.1% year over year and beat the Zacks Consensus Estimate by 1.2% due to a rise in annuity, health and life insurance policy incomes.
CNO&#39;s net investment income increased 2.4% year over year to $409.1 million in the second quarter. General account assets grew 8.3% year over year to $351.7 million and beat the consensus mark by 14.1%. However, the policyholder and other special-purpose portfolios declined 37.3% year over year to $57.4 million.
Annuity collected premiums of $439.1 million increased 9.3% year over year. New annualized premiums for health and life products improved 4.3% year over year to $102.9 million. Annuity, Health and Life products accounted for 27.7%, 49.4% and 22.9%, respectively, of CNO&#39;s insurance margin.
Total benefits and expenses were $915.6 million, which declined 1.2% year over year. The decline in the metric was due to liability for future policy benefits remeasurement gain and a decline in other operating costs and expenses.
<h3>Financial Update (as of Jun 30, 2024)</h3>
CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $878.8 million, which increased from the 2023-end level of $774.5 million. Total assets of $36.3 billion increased from $35.1 billion at 2023-end.
The debt-to-capital ratio was 43% at the end of the second quarter. It has no outstanding debt maturities till 2025.
Total shareholders&#39; equity jumped to $2.4 billion from $2.2 billion as of Dec 31, 2023.
Book value per diluted share increased to $36 in the second quarter from $33.94 at 2023-end. Adjusted operating return on equity came in at 11.2%, which improved from 8% a year ago.
<h3>Share Repurchase and Dividend Update</h3>
CNO Financial rewarded its shareholders with $60 million in the form of share buybacks and dividends of $17.2 million.
As of Jun 30, 2024, the company had remaining repurchase funds of $421.8 million.
<h3>2024 Guidance</h3>
<h3>New Update</h3>
CNO Financial now expects 2024 EPS in the range of $3.30-$3.50, indicating an increase of 10% from the 2023 figure of $3.09. The company expects the expense ratio to be in the range of 19%-19.2% for 2024, improving from the 2023 level of 19.4%. It expects $200-$250 million excess cash flow to the holding company.
<h3>Previous View</h3>
The company continues to anticipate the effective tax rate for 2024 to be around 23%. It is also aiming at a leverage of 25%-28% for this year.
<h3>Zacks Rank</h3>
CNO Financial currently carries a Zacks Rank #3 (Hold).
<h3>Performances of Other Insurers</h3>
Of the insurance industry players that have reported second-quarter 2024 results so far, the bottom-line results of&nbsp;Marsh &amp; McLennan Companies, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mmc#NYSE">MMC</a>),&nbsp;Brown &amp; Brown, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bro#NYSE">BRO</a>) and&nbsp;Kinsale Capital Group, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/knsl#NYSE">KNSL</a>) beat the Zacks Consensus Estimate.
Marsh &amp; McLennan reported second-quarter 2024 adjusted earnings per share of $2.41, which beat the Zacks Consensus Estimate by 0.8%. The bottom line advanced 10% year over year.&nbsp; Consolidated revenues rose 6% year over year to $6.2 billion. The figure also improved 6% on an underlying basis.&nbsp; The top line, however, fell short of the consensus mark by 1%. MMC&#39;s adjusted operating income was $1.72 billion, which grew 11% year over year. Adjusted operating margin improved 130 bps year over year to 29%.
The Risk and Insurance Services segment&#39;s revenues were $4.02 billion, which advanced 8% year over year and 7% on an underlying basis. Adjusted operating income advanced 12% year over year to $1.34 billion. Revenues of Marsh, a unit within the segment, improved 8% year over year and 7% on an underlying basis to $3.27 billion. In the United States/Canada, underlying revenues grew 6% year over year. International operations also witnessed underlying revenue growth of 7%. &nbsp;
Brown &amp; Brown&#39;s second-quarter adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line increased 17.7% year over year. Total revenues of $1.2 billion beat the consensus estimate by 3.3%. The top line improved 12.5% year over year. The upside can be primarily attributed to commission and fees, which grew 11.4% year over year to $1.1 billion.&nbsp;
Organic revenues improved 10% to $1 billion. Investment income more than doubled year over year to $22 million. Adjusted EBITDAC was $420 million, up 17.3% year over year. EBITDAC margin expanded 150 bps year over year to 35.7%.&nbsp;
Kinsale Capital delivered second-quarter net operating earnings of $3.75 per share, which outpaced the Zacks Consensus Estimate by 6.5%. The bottom line increased 30.4% year over year.&nbsp; Operating revenues jumped 45.1% year over year to $378 million. Revenues beat the consensus estimate of $377 million. Gross written premiums of $529.8 million rose 20.9% year over year. Net written premiums climbed 17.9% year over year to $430.2 million.&nbsp;
Net investment income increased 48.3% year over year to $35.8 million. Kinsale Capital&#39;s underwriting income was $76.1 million, which grew 23.6% year over year. The combined ratio deteriorated 100 bps to 77.7% in the quarter under review. The expense ratio deteriorated 10 bps to 21.1, while the loss ratio deteriorated 60 bps to 56.6.
<a href="https://www.zacks.com/stock/news/2313385/cno-financial-cno-q2-earnings-beat-estimates-24-eps-view-up?cid=CS-BENZ-FT-analyst_blog|earnings_article-2313385">To read this article on Zacks.com click here.</a>

Guidance

CNO Financial Q2 Earnings Beat Estimates, '24 EPS View Up

Brown & Brown Acquire Dutch Insurance Broker Quintes Holding B.V; Deal Terms Not Disclosed

Keefe, Bruyette &amp; Woods analyst Meyer Shields maintains Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) with a Underperform and raises the price target from $86 to $92.

Keefe, Bruyette & Woods Maintains Underperform on Brown & Brown, Raises Price Target to $92

Willis Towers Watson Public Limited Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wtw#NASDAQ">WTW</a>) delivered second-quarter 2024 adjusted earnings of $2.55 per share, which beat the Zacks Consensus Estimate by 11.8%.&nbsp; The bottom line increased 24% year over year.
The insurer&#39;s second-quarter results benefited from the strong revenue contribution from the Health, Wealth &amp; Career and Risk &amp; Broking segments, as well as expanded margin, partly offset by elevated expenses.
<div class="chart_embed">
Willis Towers Watson Public Limited Company Price, Consensus and EPS Surprise
<img alt="Willis Towers Watson Public Limited Company Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/10/1721911828.png" style="height:265px; width:591px" title="" />
Willis Towers Watson Public Limited Company price-consensus-eps-surprise-chart | Willis Towers Watson Public Limited Company Quote
</div>
<h3>Operational Update</h3>
Willis Towers posted adjusted consolidated revenues of $2.26 billion, up 5% year over year on a reported basis. Revenues increased 6% on both organic basis and constant currency basis. The top line beat the Zacks Consensus Estimate by 0.04%.
The total costs of providing services increased 1.7% year over year to $2 billion due to higher salaries and benefits, transaction and transformation and other operating expenses. The metric matched our estimate.
Adjusted operating income was $385 million, which increased 22% year over year. The figure was higher than our estimate of $343 million. Margin expanded 240 basis points (bps) to 17%.
Adjusted EBITDA was $466 million, up 13% year over year. The figure was higher than our estimate of $437.4 million. Adjusted EBITDA margin expanded 160 bps to 20.6%.
<h3>Quarterly Segment Update</h3>
Health, Wealth &amp; Career: Total revenues of $1.2 billion increased 4% year over year (4% increase on a constant currency and 5% increase on organic basis). The figure matched the Zacks Consensus Estimate as well as our estimate.
Organic revenue growth in Health was driven by increased project work in North America and strong client retention, new local appointments and the continued expansion of Global Benefits Management client portfolio in International and Europe.
Wealth businesses generated organic revenue growth from higher levels of Retirement work in North America and Europe and an increase in Investments business due to capital market improvements and growth from LifeSight solution.
Career had organic revenue growth from increased project work and product revenues in Employee Experience and Work &amp; Rewards.
The operating margin was 21.9%, which expanded 360 bps from the prior-year quarter, primarily from operating leverage and Transformation savings.
Risk &amp; Broking: Total revenues of $979 million increased 9% year over year (10% increase in constant currency as well as on an organic basis) and beat our estimate of $954 million and the Zacks Consensus Estimate $958 million.
Corporate Risk &amp; Broking had organic revenue growth, primarily driven by higher levels of new business activity, strong client retention and renewal increases across all geographies. Insurance Consulting and Technology had flat organic revenue growth in the reported quarter, primarily due to tempered demand for discretionary services.
The operating margin increased 450 bps from the prior-year quarter to 20.6%, primarily due to operating leverage from strong revenue growth in CRB, Transformation savings and interest income.
<h3>Financial Update</h3>
As of Jun 30, 2024, cash and cash equivalents was $1.2 billion, down 22% year over year.
Long-term debt increased 16.2% to $5.3 billion at quarter-end from the end of 2023.
Shareholders&#39; equity decreased 1.9% from the level on Dec 31, 2023, to $9.3 billion as of Jun 30, 2024.
Cash flow from operations was $431 million in the first half of 2024, which inched up 0.2% from the prior-year period.
Free cash flow for the first half of 2024 increased 3.1% to $361 million.
<h3>2024 Outlook</h3>
Willis Towers expects to deliver revenues of more than $9.9 billion.
The insurer projects to deliver an adjusted operating margin in the band of 23-23.5%.&nbsp;
Willis Towers expects to deliver adjusted diluted earnings per share in the range of $16-$17.
WTW expects Transformation Program annual cost savings of $450 million.
The insurer expects approximately $88 million in non-cash pension income. It expects a foreign currency headwind on adjusted earnings per share of approximately 10 cents.
<h3>Zacks Rank</h3>
Willis Towers currently carries a Zacks Rank #3 (Hold).
<h3>Performance of Some Other Insurers</h3>
Brown &amp; Brown, Inc.&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bro#NYSE">BRO</a>) second-quarter 2024 adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line increased 17.7% year over year. Total revenues of $1.2 billion beat the Zacks Consensus Estimate by 3.3%. The top line improved 12.5% year over year. The upside can be primarily attributed to commission and fees, which grew 11.4% year over year to $1.1 billion. Our estimate for commission and fees growth was 7.2%.
Organic revenues improved 10% to $1 billion in the quarter under review. Investment income more than doubled year over year to $22 million. The Zacks Consensus Estimate for the metric was pegged at $18.6 million and our estimate was $23.2 million. Adjusted EBITDAC was $420 million, up 17.3% year over year. EBITDAC margin expanded 150 bps year over year to 35.7%. Our estimate for adjusted EBITDAC was $411.4 million.
Marsh &amp; McLennan Companies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mmc#NYSE">MMC</a>) reported second-quarter 2024 adjusted earnings per share of $2.41, which beat the Zacks Consensus Estimate by 0.8%. The bottom line advanced 10% year over year. Consolidated revenues rose 6% year over year to $6.2 billion. The figure also improved 6% on an underlying basis.
The top line, however, fell short of the consensus mark by 1%. Total operating expenses of $4.58 billion increased 3.6% year over year but were lower than our estimate of $4.62 billion. MMC&#39;s adjusted operating income was $1.72 billion in the second quarter, which grew 11% year over year and beat our estimate of $1.68 billion. Adjusted operating margin improved 130 bps year over year to 29%.
Selective Insurance Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sigi#NASDAQ">SIGI</a>) reported second-quarter 2024 operating loss of $1.10 per share against the Zacks Consensus Estimate for earnings of $1.56. The company had reported an operating income of 99 cents per share in the prior-year quarter. Total revenues of $1.2 billion increased 15% from the year-ago quarter&#39;s figure, primarily due to higher premiums earned, net investment income and net premiums written. The top line missed the Zacks Consensus Estimate by 1.3%.
On a year-over-year basis, net premium written increased 13% to $1.22 billion. The figure matched our estimate. After-tax net investment income increased 11% year over year to $86 million. After-tax net underwriting loss was $137.2 million against the year-ago underwriting income of $1.2 million. Pre-tax catastrophe losses of $91 million were narrower than a loss of $100 million reported in the year-ago quarter. The combined ratio deteriorated 1,590 bps on a year-over-year basis to 116.1.
<a href="https://www.zacks.com/stock/news/2309154/willis-towers-wtw-q2-earnings-beat-estimates-improve-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2309154">To read this article on Zacks.com click here.</a>

SIGI

Willis Towers Q2 Earnings Beat Estimates, Improve Y/Y

Raymond James analyst C. Gregory Peters maintains Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) with a Outperform and raises the price target from $95 to $110.

Raymond James Maintains Outperform on Brown & Brown, Raises Price Target to $110

RBC Capital analyst Scott Heleniak maintains Brown &amp; Brown (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) with a Outperform and raises the price target from $95 to $110.

RBC Capital Maintains Outperform on Brown & Brown, Raises Price Target to $110

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Brown & Brown Q2: Strong Insurance Premium Growth Continues

The insurance industry is well-positioned for robust growth owing to evolving consumer preferences, emerging market demand, and rapid digital transformation. Thus, it could be wise to invest in quality insurance stocks Hartford Financial Services Group (HIG), Brown & Brown (BRO), and Primerica (PRI) for substantial gains. Continue reading... With strong economic growth, evolving demand among consumers, and rising adoption of digital technologies, the insurance industry is expected to experience robust growth in the coming years.
Given the industry's bright prospects, fundamentally sound insurance stocks The Hartford Financial Services Group, Inc. (<a href="https://stocknews.com/stock/HIG/">HIG</a>), Brown &amp; Brown, Inc. (<a href="https://stocknews.com/stock/BRO/">BRO</a>), and Primerica, Inc. (<a href="https://stocknews.com/stock/PRI/">PRI</a>) could be solid portfolio additions offering solid growth and stability.
After a slow first-quarter growth, the <a href="https://www.reuters.com/markets/us/us-economic-growth-regains-steam-second-quarter-inflation-slows-2024-07-25/">U.S. economy regained speed</a> in the second quarter with gross domestic product growth at a 2.8% annualized rate. The economy grew faster than expected with rising consumer spending, business investment and easing price pressure. Also, expectations of a September interest rate cut from the Federal Reserve signal further improvement.
This strong economic growth trajectory will likely benefit economic activities, boost consumer confidence, and benefit businesses especially in segments like insurance. The <a href="https://riskandinsurance.com/global-commercial-insurance-rates-stabilize-in-q2-2024/#:~:text=For%20the%20first%20time%20in,Market%20Index%20released%20by%20Marsh.">commercial insurance rates in the U.S. increased 1%</a>, and casualty insurance rates increased by 4% overall in the second quarter. This moderation is attributable to increased capacity, and competition among insurers.
The property and casualty insurance market is expected to grow from $2 trillion in 2024 to $3.79 trillion by 2032, exhibiting growth at a <a href="https://www.polarismarketresearch.com/industry-analysis/property-and-casualty-insurance-market">CAGR of 8.3%</a>. Technological advancements like advanced core processes, Artificial intelligence (AI) and data analytics will propel the market demand.
Further, the insurance brokers &amp; agents market is expected to reach $612.72 billion by 2028, expanding at a <a href="https://www.thebusinessresearchcompany.com/market-insights/insurance-brokers-and-agents-market-2024">CAGR of 7%</a> driven by rising demand from emerging markets.
Considering this favorable backdrop, let's assess the fundamentals of the three insurance stocks.
The Hartford Financial Services Group, Inc. (<a href="https://stocknews.com/stock/HIG/">HIG</a>)
HIG provides insurance and financial services to individual and business customers internationally. The company operates through Commercial Lines segment; Personal Lines segment; Property &amp; Casualty Other Operations segment; Group Benefits segment; and Hartford Funds segment.
HIG's revenue and EBITDA have grown at respective CAGRs of 6.1% and 5.6% over the past three years. The company's EBIT has increased 9.6% over the same timeframe, while its net income and EPS have improved at CAGRs of 10.7% and 17.3%, respectively.
On July 17, HIG's Board of Directors declared a dividend of $0.47 per share of common stock, payable on October 2 to common stock shareholders of record at the close of business on September 3.
The Board also declared a dividend of $375 on each of the shares of Series G preferred stock (equivalent to $0.375 per depository share), payable on November 15 to Series G preferred stock shareholders of record at the close of business on November 1.
HIG pays an annual dividend of $1.88, which translates to a yield of 1.62% at the current share price. Its four-year average dividend yield is 2.21%. Moreover, the company's dividend payouts have increased at a CAGR of 10.8% over the past three years. HIG has raised its dividends for 11 consecutive years.
During the second quarter that ended June 30, 2024, HIG's total <a href="https://www.investopedia.com/terms/r/revenue.asp">revenues</a> increased 8.5% year-over-year to $3.48 billion. The company's core earnings came in at $750 million and $2.50 per share, indicating growths of 27.5% and 33% from the prior year's quarter, respectively.
In addition, the company's book value per share rose 15.7% over the prior-year quarter to $51.43.
Analysts expect HIG's revenue for the third quarter (ending September 2024) to increase 8.5% year-over-year to $6.69 billion, while its EPS is expected to grow 10.2% year-over-year to $2.52. Further, the company has surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past six months, HIG's stock has gained 21.2% and 60.7% over the past year to close the last trading session at $116.15. It has a beta of 0.92.
HIG's bright outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has an A grade for Momentum and a B for Growth and Stability. Within the A-rated <a href="https://stocknews.com/category/property-casualty-insurance/">Insurance – Property &amp; Casualty</a> industry, HIG is ranked #23 among 55 stocks.
<a href="https://stocknews.com/stock/HIG/">Click here</a> to access additional ratings of HIG (Value, Sentiment, and Quality).
Brown &amp; Brown, Inc. (<a href="https://stocknews.com/stock/BRO/">BRO</a>)
BRO markets and sells insurance products and services internationally. It operates in four segments: Retail; National Programs; Wholesale Brokerage; and Services. The company provides property and casualty, employee benefits insurance products, personal insurance products, and specialties insurance products.
BRO's revenue and EBITDA have grown at CAGRs of 15.9% and 17.7% over the past three years, respectively. The company's EBIT has increased 18.5% over the same time frame, while its net income and EPS have improved at respective CAGRs of 20.4% and 20.1%, respectively.
On July 29, BRO entered into an agreement to acquire the Quintes insurance operations, one of the largest independent insurance brokers in the Netherlands. The transaction is expected to close in the fourth quarter of 2024. The strategic acquisition aligns well with BRO and will expand its international footprint and broaden the global capabilities scope.
For the second quarter that ended June 30, 2024, BRO's total revenues rose 12.5% year-over-year to $1.18 billion. Its income before income taxes grew 36.2% from the year-ago value to $346 million. The company's net income attributable to the company was $257 million and $0.90 per share, up 35.3% and 34.3% year-over-year, respectively.
In addition, the company's adjusted EBITDAC came in at $420 million, an increase of 17.3% from the previous year's quarter.
Street expects BRO's revenue and EPS for the third quarter (ending September 2024) to increase 8.9% and 22.2% year-over-year to $1.16 billion and $0.87, respectively. Furthermore, the company topped the consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
Over the past six months, the stock has gained 24.3% and 42% over the past year to close the last trading session at $104.65. It has a beta of 0.82.
BRO's sound fundamentals are reflected in its POWR Ratings. The stock has an overall grade of B, equating to a Buy in our proprietary rating system.
BRO has an A grade for Momentum. It also has a B grade for Growth, Sentiment, Quality, and Stability. The stock is ranked #2 out of 13 stocks within the <a href="https://stocknews.com/category/insurance-brokers/">Insurance - Brokers</a> industry.
To see the other ratings of BRO, <a href="https://stocknews.com/stock/BRO/">click here</a>.
Primerica, Inc. (<a href="https://stocknews.com/stock/PRI/">PRI</a>)
PRI provides financial products and services to middle-income households. The company operates through four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products.
PRI's trailing-12-month gross profit and EBIT margins of 66.52% and 30.40% are 10.4% and 31.2% higher than the respective industry averages of 60.24% and 23.16%. Likewise, the stock's trailing-12-month levered FCF margin of 32.83% is 84.2% higher than the industry average of 17.83%.
Over the past three years, PRI's revenue and EBITDA have grown at CAGRs of 6.5% and 11.7%, respectively. The company's EBIT has increased 11.7% over the same time frame, while its normalized net income and EPS have improved at respective CAGRs of 13.2% and 4.5%, respectively.
During the second quarter that ended June 30, 2024, PRI's total revenues increased 16.7% year-over-year to $803.37 million and its total adjusted operating income before income taxes grew 11.6% year-over-year to $212.14 million. The company's adjusted net operating income and adjusted EPS came in at $162.75 million, and $4.71, up 11.9% and 18% from the prior year's quarter, respectively.
Analysts expect PRI's revenue and EPS for the third quarter (ending September 2024) to grow 4.2% and 10.6% year-over-year to $740.69 million and $4.73, respectively. Moreover, the company has exceeded the consensus revenue estimates in all four trailing quarters, which is remarkable.
Shares of PRI have surged 6.7% over the past six months and 30.4% over the past year to close the last trading session at $216.57. It has a 24-month beta of 0.69.
PRI's POWR Ratings reflect its solid prospects. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
PRI has an A grade for Momentum and a B grade for Growth, Sentiment, and Stability. It is ranked #11 among 26 stocks in the B-rated <a href="https://stocknews.com/category/life-insurance/">Insurance - Life</a> industry.
In addition to the POWR Ratings highlighted above, you can check PRI's ratings for Value and Quality <a href="https://stocknews.com/stock/PRI/">here</a>.
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HIG shares were trading at $115.84 per share on Friday morning, down $0.31 (-0.27%). Year-to-date, HIG has gained 45.49%, versus a 18.57% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/hig-bro-pri-3-insurance-stocks-that-offer-growth-and-stability/>3 Insurance Stocks That Offer Growth and Stability</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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