Brown & Brown Inc (NYSE:BRO) stock fell 7.35% (As on January 27, 11:35:38 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter adjusted earnings that beat expectations as the insurance broker benefited from higher income from commissions and fees, but shares fell following a revenue miss and declining organic growth. Brown & Brown, which specializes in risk management, posted a 36% jump in commissions and fees to $1.58 billion in the quarter ended December 31. The company’s investment and other income rose to $27 million in the quarter, versus $23 million a year earlier. The company’s fourth-quarter income before income taxes was $321 million, increasing 16.7% YoY, though the margin decreased to 20.0% from 23.2% in the prior-year quarter. Net income attributable to the company rose 25.7% to $264 million compared to the fourth quarter of 2024. Brown & Brown maintained its adjusted EBITDAC margin at 32.9% in the fourth quarter, unchanged from the same period last year. EBITDAC Adjusted was of $529 million, increasing 35.6%. Global insured losses from natural disasters surpassed $100 billion in 2025 for the sixth year in a row, according to a study by Swiss Re Institute.
Meanwhile, BRO has launched Brown & Brown Healthcare, an integrated, all-lines national healthcare practice. The new unit will consist of a team of over 140 professionals, co-led by Matthew Siciliani and Tracy Hoffman and guided by Bob Dubraski as practice chairman. The company has also completed the acquisition of Assets of J. Kevin Campbell Agency on December 15, 2025.
BRO in the fourth quarter of FY25 has reported the adjusted earnings per share of 93 cents, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue growth of 35.7 percent to $1.6 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $1.65 billion. The organic revenue decreased by 2.8% to $1.08 billion for the quarter. However, insurance providers have seen increased demand as consumers and businesses boost coverage amid growing climate and cyber risks — helping brokerage firms such as Brown & Brown. For the full year 2025, the company reported total revenues of $5.9 billion, a 22.8% increase from 2024, with organic revenue growing 2.8% annually. Adjusted EBITDAC reached $2.1 billion, rising 25.6% from the previous year, with adjusted EBITDAC margin improving to 35.9% from 35.2% in 2024.
Additionally, the company declared a regular quarterly cash dividend of $0.165 per share. The dividend is payable on February 11, 2026, to shareholders of record on February 4, 2026.