Brown & Brown Sees 3.6% Commission Increase

Brown & Brown Inc. announced its net income and net income per share for the second quarter of 2008. Additionally, it announced that its total commissions and fees revenues for the second quarter of 2008 increased 3.6% over the second quarter of 2007.

Net income for the second quarter of 2008 was $40,398,000, or $0.29 per share, compared with $52,012,000, or $0.37 per share for the same quarter of 2007. Excluding the non-recurring gain of $9,823,000 on the sale of Rock-Tenn shares in the second quarter of 2007, net income for the second quarter of 2007 was $45,969,000, or $0.33 per share.

Total revenue for the second quarter ended June 30, 2008 was $241,720,000, compared with 2007 second quarter revenue of $246,644,000. Excluding the non-recurring gain of $9,823,000 on the sale of Rock-Tenn shares in the second quarter of 2007, total revenues for the second quarter of 2008 increased 2.1% over the adjusted total revenues in the corresponding quarter of 2007, which equaled $236,821,000.

Total revenue for the six-months ended June 30, 2008 was $498,435,000, compared with the total revenues for the first half of 2007 of $505,157,000. Excluding the non-recurring gain of $18,664,000 on the sale of Rock-Tenn shares in the first half of 2007, total revenues for the first six-month period of 2008 increased 2.5% over the adjusted total revenues in the corresponding period of 2007, which equaled $486,493,000. Net income for the six-month period ended June 30, 2008 was $92,158,000, or $0.65 per share, compared with $111,739,000, or $0.79 per share for the same period of 2007. Excluding the non-recurring gain of $18,664,000 on the sale of Rock-Tenn shares in the first half of 2007, net income for the six-month period ended June 30, 2008 was $92,158,000 compared to the adjusted net income of the comparable period in 2007 of $100,312,000.

J. Hyatt Brown, chairman and CEO, noted, "Our results for the quarter were reflective of the continuing soft market. The general economic slowdown varies in degree across our 38 states footprint, but is causing reductions in renewal exposure units in most locations and in most classes of business. Even with this dual headwind, Brown & Brown has shown a dogged commitment to growth and margins. The good news is we think 2009 should be better."

Jim Henderson, vice chairman and COO, added, "The second quarter of 2008 was one of our more active periods for acquisitions with 13 transactions closing, representing $47.5 million in estimated annualized revenues. For the year, we have closed 25 transactions with estimated annualized revenues of $79.0 million. We are very proud of the high-quality class of agencies that have elected to join us. The number of prospects for M&A continues to be very encouraging."