DAYTONA BEACH, FL and TAMPA, FL--(Marketwire - Feb 1, 2013) - Brown & Brown, Inc. (NYSE: [ BRO ]) today announced its preliminary, unaudited financial results for the fourth quarter of 2012.

Net income for the fourth quarter of 2012 was $42,637,000, or $0.29 per share, compared with $36,494,000, or $0.25 per share for the same quarter of 2011, an increase of 16.8%. Total revenue for the fourth quarter was $302,830,000, compared with 2011 fourth-quarter revenue of $244,097,000, an increase of 24.1%.

Total revenue for the twelve months ended December 31, 2012 was $1,200,032,000, compared with total revenue for the same period of 2011 of $1,013,542,000, an increase of 18.4%. Net income for the twelve-month period ended December 31, 2012 was $184,045,000, or $1.26 per share, compared with $163,995,000, or $1.13 per share for the same period of 2011, an increase of 12.2%.

J. Powell Brown, President and Chief Executive Officer of the Company, noted, "The fourth-quarter results were the culmination of the hard work of our 6,300-plus teammates throughout 2012. Two of our most important goals for 2012 -- to grow our revenues organically and to improve each and every quarter -- were accomplished. I am very proud of what we achieved in the fourth quarter and for the year. We will continue to work tirelessly for the benefit of our clients in 2013."

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' sixth 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 the Company's anticipated financial results for the fourth quarter of 2012. 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. These risks and uncertainties include, but are not limited to, the Company's determination as it finalizes its financial results for the fourth quarter of 2012 that its financial results differ from the current preliminary unaudited numbers set forth herein, other factors that the Company may not have currently identified or quantified, and other risks, relevant factors and uncertainties identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, and the Company's other filings with the Securities and Exchange Commission. 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 December 31,					For the Twelve Months Ended December 31,
			2012		2011			2012		2011
REVENUES
Commissions and fees			$	300,296	$	241,350		$	1,189,081	$	1,005,962
Investment income				236		333			797		1,267
Other income, net				2,298		2,414			10,154		6,313
	Total revenues			302,830		244,097			1,200,032		1,013,542

EXPENSES
Employee compensation and benefits				158,467		129,389			608,506		508,675
Non-cash stock-based compensation				4,472		2,856			15,865		11,194
Other operating expenses				44,995		34,590			174,389		144,079
Amortization				16,123		13,965			63,573		54,755
Depreciation				3,990		3,116			15,373		12,392
Interest				4,004		3,352			16,097		14,132
Change in estimated acquisition earn-out payables				1,552		(2,862	)		1,418		(2,206	)
		Total expenses		233,603		184,406			895,221		743,021

Income before income taxes				69,227		59,691			304,811		270,521

Income taxes				26,590		23,197			120,766		106,526

Net income			$	42,637	$	36,494		$	184,045	$	163,995

Net income per share:
	Basic		$	0.30	$	0.25		$	1.28	$	1.15
	Diluted		$	0.29	$	0.25		$	1.26	$	1.13

Weighted average number of shares outstanding:
	Basic			139,681		138,796			139,364		138,582
	Diluted			142,314		140,547			142,010		140,264

Dividends declared per share			$	0.090	$	0.0850		$	0.3450	$	0.3250




Brown & Brown, Inc.
INTERNAL GROWTH SCHEDULE
Core Organic Commissions and Fees⁽¹⁾
Three Months Ended December 31, 2012
(in thousands)
(unaudited)

	Quarter Ended 12/31/12		Quarter Ended 12/31/11		Total Net Change		Total Net Growth %		Less Acquisition Revenues		Internal Net Growth $		Internal Net Growth %

Retail⁽²⁾	$	153,230	$	139,257	$	13,973	10.0	%	$	6,166	$	7,807	5.6	%

National Programs		64,090		41,057		23,033	56.1	%		22,957		76	0.2	%

Wholesale Brokerage		40,299		35,595		4,704	13.2	%		1,738		2,966	8.3	%

Services		34,398		16,482		17,916	108.7	%		16,106		1,810	11.0	%

Total Core Commissions and Fees ⁽¹⁾	$	292,017	$	232,391	$	59,626	25.7	%	$	46,967	$	12,659	5.4	%




Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
For the Three Months Ended December 31, 2012 and 2011
(in thousands)
(unaudited)

	Quarter Ended 12/31/12		Quarter Ended 12/31/11
Total core commissions and fees⁽¹⁾	$	292,017	$	232,391
Profit-sharing contingent commissions		6,342		4,810
Guaranteed supplemental commissions		1,937		2,459
Divested business		-		1,690

Total commissions & fees	$	300,296	$	241,350

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

(2) The Retail segment includes commissions and fees reported in the "Other" column of the Segment Information, which includes corporate and consolidation items.




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

			December 31, 2012		December 31, 2011
ASSETS
Current assets:
	Cash and cash equivalents		$	219,821	$	286,305
	Restricted cash and investments			164,564		130,535
	Short-term investments			8,183		7,627
	Premiums, commissions and fees receivable			302,725		240,257
	Deferred income taxes			24,408		19,863
	Other current assets			39,811		23,540
		Total current assets		759,512		708,127

Fixed assets, net				74,337		61,360
Goodwill				1,711,514		1,323,469
Amortizable intangible assets, net				566,538		496,182
Other assets				16,157		17,873
		Total assets	$	3,128,058	$	2,607,011

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Premiums payable to insurance companies		$	406,704	$	327,096
	Premium deposits and credits due customers			32,867		30,048
	Accounts payable			48,524		22,384
	Accrued expenses and other liabilities			79,593		100,865
	Current portion of long-term debt			93		1,227
		Total current liabilities		567,781		481,620

Long-term debt				450,000		250,033

Deferred income taxes, net				237,630		178,052

Other liabilities				65,314		53,343

Shareholders' equity:
	Common stock, par value $0.10 per share; authorized 280,000 shares; issued and outstanding 143,878 at 2012 and 143,352 at 2011			14,388		14,335
	Additional paid-in capital			335,872		307,059
	Retained earnings			1,457,073		1,322,562
	Accumulated other comprehensive income			-		7

		Total shareholders' equity		1,807,333		1,643,963

		Total liabilities and shareholders' equity	$	3,128,058	$	2,607,011

Contributing Sources

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Brown &;; Brown, Inc. Announces Record Fourth-Quarter Earnings of $42.6 Million

Brown & Brown, Inc. Announces Record Fourth-Quarter Earnings of $42.6 Million