Brown & Brown Inc. reported third-quarter revenue of $927.6 million late Monday, up 20.4% from the same period last year, with organic revenue increasing 6.7%.
Quarterly profit increased 10.0% to $161.0 million.
The broker also completed 11 acquisitions during the quarter with aggregate annual revenue of $339 million, bolstering results.
“We continue to anticipate good and profitable growth for the remainder of 2022,” J. Powell Brown, chairman, president and CEO of the Daytona Beach, Florida-based brokerage, said on an earnings call with analysts Tuesday, forecasting continued rate strength through the end of the year.
The ultimate impact of Hurricane Ian is still being assessed, according to Mr. Brown.
The impact from Ian losses will put additional upward pressure on property renewal rates in the fourth quarter, he said.
Organic revenue, which excludes acquisitions and various other changes, increased 5.1% in Brown & Brown’s retail segment, 14.5% in national programs and 4.5% in wholesale. Revenue declined 4.6% in services due to higher prior-year claims activity related to travel cancellations and weather events.
Services revenue is expected to rebound robustly with the processing of claims from Hurricane Ian, according to Mr. Brown.
Admitted market increases were similar to prior quarters and were up 3% to 7% across most lines of business, with workers compensation the outlier, down 1% to 3%, Mr. Brown said.
Increases in the excess and surplus market were steeper, at 10% to 20%, with catastrophe wind exposed rates up 15% to 35%.
Professional liability and management liability placement can be “challenging” and are up 5% to 10%. Public company directors and officers insurance, however, has moderated some 5% to 20%, according to Mr. Brown. Cyber coverage rates, meanwhile, continue to increase along with deductibles.
“Customers continue to modify their deductible and limits to best manage premium increases,” Mr. Brown said. He added, however, that “it does appear the market is getting to a level where customers cannot reduce their limits much more for certain lines without substantially dropping the coverage or bearing the higher premiums.
Mr. Brown also noted the continuing macro-economic challenges. “Inflation and rising interest rates are key areas of concern. Some business owners are becoming more cautious,” about their levels of investment and employee count, he said.