Brown & Brown, Inc. (BRO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Brown & Brown, Inc. (BRO) Financial Services Profile

Brown & Brown, Inc. is a leading insurance brokerage providing a diverse range of risk management solutions across the United States, Canada, and Europe. Operating through multiple segments, the company leverages its extensive network and specialized programs to serve a wide array of commercial and individual clients, maintaining a strong market presence.

What Is the Investment Thesis for BRO?

Brown & Brown, Inc. presents a compelling investment case due to its diversified revenue streams and strong market position within the insurance brokerage industry. With a market capitalization of $23.9B and a profit margin of 17.9%, the company demonstrates financial stability. Key value drivers include organic growth across its four segments and strategic acquisitions to expand its market presence. Catalysts include increasing demand for specialized insurance products and services, particularly in the National Programs segment. However, potential risks involve economic downturns affecting insurance demand and increased competition from other brokerage firms. The company's beta of 0.83 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

BRO Key Highlights

Market capitalization of $23.9B, reflecting substantial investor confidence.

• P/E ratio of 18.6 indicates a reasonable valuation relative to earnings.
• Profit margin of 17.9% demonstrates strong profitability and efficient operations.
• Gross margin of 59.4% highlights the company's ability to maintain pricing power and manage costs effectively.
• Dividend yield of 1.12% provides a steady income stream for investors.

Who Are BRO's Competitors?

BRO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BRO's Key Strengths?

Diversified business model with multiple revenue streams.

• Strong market position and brand reputation.
• Extensive network of agents and partners.
• Expertise in specialized insurance programs.

What Are BRO's Weaknesses?

Exposure to economic cycles affecting insurance demand.

• Dependence on relationships with insurance carriers.
• Potential for regulatory changes impacting the insurance industry.
• Integration challenges with acquired companies.

What Could Drive BRO Stock Higher?

Continued expansion of the National Programs segment, driving revenue growth through specialized insurance offerings.

• Strategic acquisitions of smaller insurance agencies, expanding geographic reach and service capabilities.
• Implementation of digital technologies to enhance customer experience and streamline operations by Q4 2026.
• Cross-selling initiatives to increase revenue per customer and strengthen customer relationships.

What Are the Key Risks for BRO?

Financial-distress signal — its Altman Z-Score of 1.67 sits in the distress zone (elevated bankruptcy risk).

• Economic downturns reducing insurance demand and impacting revenue growth.
• Increased competition from other insurance brokers, potentially leading to pricing pressures.
• Regulatory changes impacting insurance pricing and underwriting, requiring compliance adjustments.
• Cybersecurity risks and data breaches, potentially leading to financial losses and reputational damage.

What Are the Growth Opportunities for BRO?

• Expansion of National Programs Segment: The National Programs segment offers significant growth potential by targeting specialized insurance products for niche markets such as dentistry, legal, and medical professions. The increasing demand for tailored insurance solutions in these sectors, coupled with Brown & Brown's expertise in underwriting and claims management, positions the company to capture a larger market share. This expansion can be achieved through strategic partnerships and the development of new, innovative insurance products, with a potential market size exceeding $5 billion by 2030.
• Strategic Acquisitions: Brown & Brown has a history of successful acquisitions, which can continue to drive growth by expanding its geographic reach and service offerings. By acquiring smaller, specialized insurance agencies, the company can gain access to new markets and expertise, while also realizing synergies and cost savings. The insurance brokerage market remains fragmented, providing ample opportunities for strategic acquisitions that can enhance Brown & Brown's competitive position. The timeline for integrating acquired companies is typically 12-24 months.
• Digital Transformation: Investing in digital technologies to enhance customer experience and streamline operations represents a significant growth opportunity. By leveraging data analytics, artificial intelligence, and online platforms, Brown & Brown can improve underwriting accuracy, personalize insurance offerings, and reduce administrative costs. This digital transformation can attract new customers, improve customer retention, and drive operational efficiencies, with a potential impact of increasing revenue by 10% within the next three years.
• Geographic Expansion: Expanding into new geographic markets, particularly in Europe and Asia, offers significant growth potential. By leveraging its expertise and established relationships, Brown & Brown can replicate its successful business model in new regions, tapping into growing insurance markets. This expansion can be achieved through strategic partnerships, acquisitions, or organic growth, with a focus on markets with favorable regulatory environments and strong economic growth. The timeline for establishing a presence in a new market is typically 3-5 years.
• Cross-Selling Opportunities: Leveraging its diverse customer base and product offerings, Brown & Brown can capitalize on cross-selling opportunities to increase revenue and customer loyalty. By offering a comprehensive suite of insurance products and services to existing customers, the company can increase its share of wallet and strengthen customer relationships. This can be achieved through targeted marketing campaigns, personalized recommendations, and integrated service offerings, with a potential impact of increasing revenue per customer by 15% within the next two years.

What Are BRO's Competitive Advantages?

• Diversified revenue streams across multiple segments and product lines.
• Strong relationships with insurance carriers and independent agents.
• Expertise in specialized insurance programs and risk management services.
• Established brand reputation and long-standing presence in the insurance market.

What Does BRO Do?

Founded in 1939 and headquartered in Daytona Beach, Florida, Brown & Brown, Inc. has evolved into a prominent insurance brokerage firm with a global reach. The company operates through four key segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail segment offers a comprehensive suite of insurance products, including property and casualty, employee benefits, and personal insurance, alongside risk management services like loss control and claims processing. This segment caters to commercial, public, and individual clients. The National Programs segment focuses on specialized insurance products for various professions, such as dentistry, law, and medicine, as well as niche areas like weddings and cyber liabilities. It also provides outsourced services to insurance carriers. The Wholesale Brokerage segment markets excess and surplus insurance lines through independent agents. Lastly, the Services segment delivers third-party claims administration and medical utilization management. Brown & Brown's diversified business model and extensive service offerings have solidified its position in the insurance market.

What Products and Services Does BRO Offer?

• Markets and sells a variety of insurance products, including property and casualty, employee benefits, and personal insurance.
• Provides risk management services, such as loss control surveys and claims processing.
• Offers specialized insurance programs for specific professions and industries.
• Provides outsourced product development and administrative services to insurance carriers.
• Markets excess and surplus commercial and personal lines insurance through independent agents.
• Offers third-party claims administration and medical utilization management services.

How Does BRO Make Money?

• Generates revenue through commissions and fees from the sale of insurance products and services.
• Earns revenue from providing outsourced services to insurance carriers.
• Profits from managing and administering claims for workers' compensation and liability cases.

What Industry Does BRO Operate In?

Brown & Brown, Inc. operates in the insurance brokerage industry, which is characterized by increasing complexity and demand for specialized risk management solutions. The market is driven by factors such as economic growth, regulatory changes, and evolving risk landscapes. Competition includes large global brokers like Willis Towers Watson Public Limited Company (WTW) and regional players. Brown & Brown differentiates itself through its diversified service offerings and strong focus on niche markets within its National Programs segment. The industry is expected to see continued growth, driven by increasing awareness of risk management and the need for tailored insurance solutions.

Who Are BRO's Key Customers?

• Commercial entities seeking property and casualty insurance.
• Public and quasi-public entities requiring risk management solutions.
• Professionals in fields like dentistry, law, and medicine needing specialized insurance.
• Individuals seeking personal insurance products.

Over the past six months, Brown & Brown, Inc. insiders filed 15 SEC Form 4 transactions — 0 sales and 15 purchases. On net that is roughly 35K shares acquired (about $164K) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Brown & Brown, Inc.

Revenue for Brown & Brown, Inc. came in at $1.68B during Q2 2026, a 11.8% contraction versus the preceding quarter. The company recorded net income of $288.0M, with diluted EPS of $0.85. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Financial Services. Across the four most recent quarters, BRO averaged $0.89 in diluted EPS.

BRO Valuation & Market Position

With a $23.9B market cap, Brown & Brown, Inc. sits in the large-cap segment of the market. Relative to its peer group, BRO's quantitative score of 68/100 is roughly in line with the peer average of 68/100.

Return on equity for Brown & Brown, Inc. stands at 9.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.9%, showing how much profit it generates from its asset base. BRO trades at a trailing price-to-earnings ratio of 18.61, roughly in line with the Financial Services sector average of ~18x. Its free cash flow yield is 6.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.02 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.4%, the inverse of the P/E and a quick read on earnings relative to price.

Brown & Brown, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.67 places it in the distress zone, a signal of elevated financial risk.

Brown & Brown, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.4% above estimates on average.

Wall Street analysts project Brown & Brown, Inc. revenue of about $6.99B for fiscal 2026, with EPS near $4.48. The estimate reflects 10 contributing analysts.

Company Profile

Brown & Brown, Inc. operates in the Insurance - Brokers industry within the Financial Services sector. It is headquartered in Daytona Beach, US. The company is led by CEO J. Powell Brown. BRO has traded publicly since 1981.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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