DAYTONA BEACH, FL and TAMPA, FL--(Marketwire - Oct 17, 2011) - Brown & Brown, Inc. (NYSE: [ BRO ]) today announced its financial results for the third quarter of 2011.

Net income for the third quarter of 2011 was $44,173,000, or $0.30 per share, compared with $44,293,000, or $0.31 per share for the same quarter of 2010, a decrease of 0.3%. Total revenue for the third quarter ended September 30, 2011 was $260,401,000, compared with 2010 third-quarter revenue of $247,616,000, an increase of 5.2%.

Total revenue for the nine months ended September 30, 2011 was $769,445,000, compared with total revenue for the same period of 2010 of $743,554,000. Net income for the nine-month period ended September 30, 2011 was $127,501,000, or $0.88 per share, compared with $129,606,000, or $0.90 per share for the same period of 2010.

J. Powell Brown, President and Chief Executive Officer of Brown & Brown, Inc., noted, "We continue to swim upstream against a very difficult economy. We are pleased that our Services, National Programs and Wholesale Brokerage Divisions achieved positive internal revenue growth for the third quarter."

In the third quarter of 2011, $2,600,000 was expensed as a result of a legal claim first raised in 1994 that a subsidiary of the Company vigorously defended for 17 years until exhausting all appellate avenues for review. This claim expense reduced the Company's diluted net income per share for the third quarter of 2011 by $0.01.

Brown & Brown, Inc., through its subsidiaries, offers a broad range of insurance and reinsurance products and services. Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third party administration, and other services. Serving business, public entity, individual, trade and professional association clients nationwide, the Company is ranked by Business Insurance magazine as the United States' seventh largest independent insurance intermediary. The Company's Web address is [ www.bbinsurance.com ].

This press release may contain certain statements relating to future results which are forward-looking statements, including those relating to future financial results and to acquisition opportunities. These statements are not historical facts, but instead represent only the Company's current belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results, financial condition and achievements may differ, possibly materially, from the anticipated results, financial condition and achievements contemplated by these forward-looking statements. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results and condition, as well as its other achievements, are contained in the Company's filings with the Securities and Exchange Commission. Some factors include: general economic conditions around the country; downward commercial property and casualty premium pressures; the effects of legislative and regulatory changes in Florida pertaining to the insurance industry, including those relating to coastal property coverages; the competitive environment; the integration of the Company's operations with those of businesses or assets the Company has acquired or may acquire in the future and the failure to realize the expected benefits of such integration; and the potential occurrence of a disaster that affects certain areas of the States of California, Florida, Indiana, Michigan, New Jersey, New York, Pennsylvania, Texas and/or Washington, where significant portions of the Company's business are concentrated. All forward-looking statements made herein are made only as of the date of this release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware.

Brown & Brown, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)

			For the Three Months Ended September 30					For the Nine Months Ended September 30
			2011			2010		2011		2010
REVENUES
Commissions and fees			$	257,177		$	246,102	$	764,612	$	737,829
Investment income				317			345		934		1,022
Other income, net				2,907			1,169		3,899		4,703
		Total revenues		260,401			247,616		769,445		743,554

EXPENSES
Employee compensation and benefits				126,877			122,001		379,286		365,556
Non-cash stock-based compensation				2,856			1,495		8,338		5,230
Other operating expenses				38,434			31,301		109,489		101,256
Amortization				13,725			12,869		40,790		38,072
Depreciation				3,062			3,116		9,276		9,498
Interest				3,565			3,607		10,780		10,847
Change in estimated acquisition earn-out payables				(810	)		193		656		(1,036	)
		Total expenses		187,709			174,582		558,615		529,423

Income before income taxes				72,692			73,034		210,830		214,131

Income taxes				28,519			28,741		83,329		84,525

Net income			$	44,173		$	44,293	$	127,501	$	129,606

Net income per share:
	Basic		$	0.31		$	0.31	$	0.89	$	0.91
	Diluted		$	0.30		$	0.31	$	0.88	$	0.90

Weighted average number of shares outstanding:
	Basic			138,690			138,093		138,475		137,802
	Diluted			140,443			139,507		140,120		139,128

Dividends declared per share			$	0.0800		$	0.0775	$	0.2400	$	0.2325



Brown & Brown, Inc.
INTERNAL GROWTH SCHEDULE
Core Commissions and Fees (1)
Three Months Ended September 30, 2011
(in thousands)
(unaudited)

		Quarter Ended 09/30/11		Quarter Ended 09/30/10		Total Net Change			Total Net Growth %		Less Acquisition Revenues		Internal Net Growth $			Internal Net Growth %

Florida Retail		$	34,840	$	34,173	$	667		2.0	%	$	1,674	$	(1,007	)	(2.9	)%

National Retail			87,307		80,611		6,696		8.3	%		10,227		(3,531	)	(4.4	)%

Western Retail			26,680		25,028		1,652		6.6	%		3,539		(1,887	)	(7.5	)%
	Total Retail		148,827		139,812		9,015		6.4	%		15,440		(6,425	)	(4.6	)%

Professional Programs			11,525		11,675		(150	)	(1.3	)%		-		(150	)	(1.3	)%

Special Programs			38,637		37,542		1,095		2.9	%		675		420		1.1	%
Total National Programs			50,162		49,217		945		1.9	%		675		270		0.5	%

Wholesale Brokerage			34,505		34,369		136		0.4	%		-		136		0.4	%

Services			16,450		11,786		4,664		39.6	%		4,352		312		2.6	%

Total Core Commissions and Fees (1)		$	249,944	$	235,184	$	14,760		6.3	%	$	20,467	$	(5,707	)	(2.4	)%



Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
For the Three Months Ended September 30, 2011 and 2010
(in thousands)
(unaudited)
		Quarter Ended 09/30/11		Quarter Ended 09/30/10
	Total core commissions and fees (1)	$	249,944	$	235,184
	Contingent commissions		7,233		9,667
	Divested business		-		1,251

	Total commission & fees	$	257,177	$	246,102


(1)		Total core commissions and fees are our total commissions and fees less (i) profit-sharing contingent commissions (revenue derived from special revenue-sharing commissions from insurance companies based upon the volume and the growth and/or profitability of the business placed with such companies during the prior year), and (ii) divested business (commissions and fees generated from offices, books of business or niches sold by the Company or terminated).



Brown & Brown, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)


			September 30,		December 31,
			2011		2010
ASSETS
Current assets:
	Cash and cash equivalents		$	334,497	$	272,984
	Restricted cash and investments			146,033		123,594
	Short-term investments			7,612		7,678
	Premiums, commissions and fees receivable			212,051		214,446
	Deferred income taxes			8,837		20,076
	Other current assets			23,664		14,031
		Total current assets		732,694		652,809

Fixed assets, net				59,807		59,713
Goodwill				1,268,957		1,194,827
Amortizable intangible assets, net				481,930		481,900
Other assets				17,915		11,565
		Total assets	$	2,561,303	$	2,400,814

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Premiums payable to insurance companies		$	325,996	$	311,346
	Premium deposits and credits due customers			46,440		28,509
	Accounts payable			24,062		33,693
	Accrued expenses and other liabilities			90,641		94,947
	Current portion of long-term debt			1,142		1,662
		Total current liabilities		488,281		470,157

Long-term debt				250,603		250,067

Deferred income taxes, net				167,074		146,482

Other liabilities				38,784		27,764

Shareholders' equity:
	Common stock, par value $0.10 per share; authorized 280,000 shares; issued and outstanding 143,382 at 2011 and 142,795 at 2010			14,338		14,279
	Additional paid-in capital			303,966		286,997
	Retained earnings			1,298,256		1,205,061
	Accumulated other comprehensive income			1		7

		Total shareholders' equity		1,616,561		1,506,344

		Total liabilities and shareholders' equity	$	2,561,303	$	2,400,814

Contributing Sources

Market Wire

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