Brown & Brown Reports Strong Q2

Florida-based Brown & Brown Inc. announced net income for the second quarter of 2004 of $32,153,000, or $0.46 per share, an increase of 15.1% over the $27,935,000, or $0.41 per share, reported for the quarter ended June 30, 2003.

Total revenue for the quarter ended June 30, 2004 was $157,942,000 compared with 2003 second-quarter revenue of $137,858,000 an increase of 14.6%.

Total revenue for the six months ended June 30, 2004 was $323,507,000, compared with first-half 2003 revenue of $282,594,000, up 14.5%. Net income for the first six months of 2004 was $68,501,000 versus $58,471,000 during the same period in 2003, an increase of 17.2%. Net income per share for the six months ended June 30, 2004 was $0.99, versus the $0.85 per share posted during
the comparable 2003 period, an increase of 16.5%.

J. Hyatt Brown, chairman and CEO, commenting on the results said, “We are very pleased with our second quarter results. The internal growth rate of 5.1% exceeded our expectations, particularly in view of continued rate erosion; which was possibly offset by increases in exposure units. Brown & Brown’s high quality sustained growth continues to be recognized by investors as our market capitalization recently crossed the $3 billion level.”

President and Chief Operating Officer, Jim Henderson added, “We
continue our steady march to our intermediate goal of B-40. We have been assisted in this march by the addition of many fine, high quality, insurance agencies that have joined our team during the second quarter of 2004. Since April 1, 2004, we have completed ten acquisitions with estimated annual revenues of $38 million, bringing the total for the year to 21 with $86 million of estimated annual revenues.

“Among those most recently joining us is The McDuffee Insurance Agency, which represented our initial entry into New Hampshire and Massachusetts. We continue to be quite pleased with the active pipeline of high-quality agencies.”