Brown & Brown posts small increase in 2nd-qtr profit as expense cutbacks offset revenue dip

Brown & Brown 2nd-qtr profit edges up 1 percent

DAYTONA BEACH, Fla. — Brown & Brown Inc. on Monday said its second-quarter profit edged up 1 percent as the insurer contained expenses while revenue dipped.

For the three months ended June 30, the company said its net income rose to $41.2 million, or 29 cents per share, compared with $40.7 million, or 29 cents per share, in the year-ago quarter.

An increase in the number of outstanding shares accounts for the flat per-share results.

Revenue slipped 1 percent to $243.7 million, from $246.4 million.

Analysts surveyed by Thomson Reuters, on average, expected profit of 26 cents per share, on revenue of $234.4 million.

Total expenses fell 2 percent to $175.7 million.

“The insurance marketplace continues to bump around,” said President and CEO J. Powell Brown in a statement. Insurance premium rates remain ’soft’,” he said, “with no significant changes anticipated in the foreseeable future.”

Brown & Brown provides insurance and reinsurance to businesses, public entities, individuals and trade and professional associations.

Shares of Brown & Brown closed Monday trading up 12 cents to $19.07. Shares initially dipped in aftermarket trading but recovered to trade flat in the late session.