Brown & Brown, Inc. (NYSE:BRO), a leading insurance brokerage firm, stock fell 4.95% (As on January 24, 11:07:46 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. The commissions and fees rose by 21.3% and Organic Revenue grew by 7.8% in the quarter. Income before income taxes was $194.2 million, increasing 37.9% from the fourth quarter of the prior year with Income Before Income Taxes Margin increasing to 21.5% from 19.1%. EBITDAC – Adjusted was $283.1 million, increasing 34.9% from the fourth quarter of the prior year with EBITDAC Margin – Adjusted increasing to 31.4% from 28.5%. Net income was $145.2 million, increasing $43.5 million, or 42.8%.

BRO in the fourth quarter of FY 22 has reported the adjusted earnings per share of 50 cents, beating the analysts’ estimates for the adjusted earnings per share of 44 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 22.1 percent to $901.4 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $896.1 million.

Additionally, the company has declared a regular quarterly cash dividend of $0.1150 per share. The dividend is payable on February 15, 2023, to shareholders of record on February 3, 2023.

Meanwhile, the company has announced that Brown & Brown Dealer Services (“BBDS”) has acquired substantially all of the assets of Finance Builders. Finance Builders is an independent sales and service organization providing F&I products and sales support to automotive dealers primarily in Connecticut and Massachusetts. Following the transaction, the Finance Builders operations will become part of BBDS, which operates under the leadership of Mike Neal.

On the other hand, revenues for the twelve months ended December 31, 2022 under GAAP were $3,573.4 million, increasing $522.0 million, or 17.1%, as compared to 2021, with commissions and fees increasing by 16.9%, and Organic Revenue increasing by 8.1%. Income before income taxes was $876.1 million, increasing 14.9% with Income Before Income Taxes Margin decreasing to 24.5% from 25.0% as compared to 2021. EBITDAC – Adjusted was $1,170.9 million, increasing 15.9% with EBITDAC Margin – Adjusted decreasing to 32.8% from 33.2% as compared to 2021. Net income was $671.8 million, increasing $84.7 million, or 14.4%, with diluted net income per share increasing to $2.37, or 14.5% and Diluted Net Income Per Share – Adjusted increasing to $2.28, or 6.5%, as compared to 2021.