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Brown & Brown (BRO) Q4 Earnings & Revenues Top, Rise Y/Y

Brown & Brown BRO reported adjusted fourth-quarter 2021 earnings of 42 cents per share, which came ahead of the Zacks Consensus Estimate by 10.5% as well as the year-ago figure by 31.2%.

The results reflect improved organic growth, margin expansion and higher commissions and fees, partly offset by increased expenses.

Brown & Brown, Inc. Price, Consensus and EPS Surprise

Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote

Behind the Headlines   

Adjusted revenues of $739 million beat the Zacks Consensus Estimate by 1.5%. Moreover, the top line rose 15.1% year over year on higher commissions and fees. Organic revenues increased 9% in the reported quarter.

Commissions and fees grew 15.3% year over year to $737.9 million.

Investment income however plunged 80% year over year to $0.2 million.

Total expenses increased 16.9% to $597.7 million due to a rise in employee compensation and benefits, amortization, depreciation as well as other operating expenses.

EBITDAC was $215.7 million, up 24% year over year. EBITDAC margin expanded 210 basis points (bps) to 29.2%.

Full-Year Update

Full-year 2021 adjusted income of $2.19 per share beat the Zacks Consensus Estimate of $2.16. The bottom line increased 31.1% year over year.

Total revenues increased 16.7% from the year-ago quarter to $3.05 billion and beat the Zacks Consensus Estimate of $3.04 billion.

EBITDAC was $1.02 billion, up 25.5% from 2020 with margin expanding 240 bps to 33.5%.

Financial Update

Brown & Brown exited 2021 with cash and cash equivalents of $887.1 million, up about 8.5% from the 2020-end level.

Long-term debt of $1.9 billion as of Dec 31, 2021 was down 2.2% from 2020 end.

Net cash provided by operating activities in 2021 was $948 million, up 31.4% year over year.

Dividend Update

The company paid out a cash dividend of 10.25 cents per share in the fourth quarter.

Zacks Rank

Brown & Brown currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Another Insurer

The Travelers CompaniesTRV bottom line beat the Zacks Consensus Estimate for the fourth quarter of 2021 and increased 6% year over year. Total revenues increased 7% from the year-ago quarter to about $9 billion and beat the Zacks Consensus Estimate of $8.7 billion.

Travelers Companies’ net written premiums increased 10% year over year. The combined ratio deteriorated 130 basis points (bps) year over year.

Upcoming Releases

The Progressive Corporation PGR will report fourth-quarter 2021 results on Jan 26. The Zacks Consensus Estimate for the fourth quarter is pegged at 99 cents, indicating a decrease of 45.9% from the year-ago reported figure.

Progressive beat estimates in one of the three reported quarters of 2021 while missing in two.

RLI Corp RLI will report fourth-quarter 2021 results on Jan 26. The Zacks Consensus Estimate for the fourth quarter is pegged at 93 cents, suggesting an improvement of 24% year over year.

RLI beat estimates in the three reported quarters of 2021.


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RLI Corp. (RLI): Free Stock Analysis Report
 
The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
 
The Progressive Corporation (PGR): Free Stock Analysis Report
 
Brown & Brown, Inc. (BRO): Free Stock Analysis Report
 
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