$BRO

BROWN & BROWN INC

CIK:0000079282|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
REVENUES
Commissions and fees	$ 1,654	$ 1,249	$ 3,534	$ 2,634
Investment and other income	22	36	43	55
Total revenues	1,676	1,285	3,577	2,689
EXPENSES
Employee compensation and benefits	838	640	1,745	1,323
Other operating expenses	271	211	560	398
Loss on disposal	1	0	0	1
Amortization	110	50	226	103
Depreciation	18	11	35	23
Interest	100	51	199	96
Change in estimated acquisition earn-out payables	(40)	11	(34)	7
Mark-to-market of escrow liability	(5)	0	(69)	0
Total expenses	1,293	974	2,662	1,951
Income before income taxes	383	311	915	738
Income taxes	94	77	199	169
Net income before non-controlling interests	289	234	716	569
Less: Net income attributable to non-controlling interests	1	3	2	6
Net income attributable to the Company	$ 288	$ 231	$ 714	$ 563
Net income per share:
Basic	$ 0.86	$ 0.79	$ 2.14	$ 1.94
Diluted	$ 0.84	$ 0.78	$ 1.9	$ 1.93

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income before non-controlling interests	$ 716	$ 569
Adjustments to reconcile net income before non-controlling interests to net cash provided by operating activities:
Amortization	226	103
Depreciation	35	23
Non-cash stock-based compensation	49	52
Change in estimated acquisition earn-out payables	(34)	7
Mark-to-market of escrow liability	(69)	0
Deferred income taxes	128	(2)
Net loss on sales/disposals of investments, businesses, fixed assets and customer accounts	0	2
Payments on acquisition earn-outs in excess of original estimated payables	(40)	(1)
Other	8	2
Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:
Commissions, fees and other receivables (increase) decrease	(143)	(139)
Reinsurance recoverable (increase) decrease	56	1,142
Prepaid reinsurance premiums (increase) decrease	130	(9)
Other assets (increase) decrease	(112)	(11)
Losses and loss adjustment reserve increase (decrease)	(59)	(1,143)
Unearned premiums increase (decrease)	(100)	55
Accounts payable increase (decrease)	(11)	5
Accrued expenses and other liabilities increase (decrease)	(194)	(132)
Other liabilities increase (decrease)	22	15
Net cash provided by operating activities	608	538
Cash flows from investing activities:
Additions to fixed assets	(38)	(32)
Payments for businesses acquired, net of cash acquired	(30)	(161)
Proceeds from sales of businesses, fixed assets and customer accounts	3	10
Other investing activities	(6)	(4)
Net cash used in investing activities	(71)	(187)
Cash flows from financing activities:
Fiduciary receivables and liabilities, net	157	119
Payments on acquisition earn-outs	(184)	(45)
Proceeds from long-term debt	0	4,192
Payments on long-term debt	(31)	(188)
Deferred debt issuance costs	(3)	(36)
Borrowings on revolving credit facility	225	150
Payments on revolving credit facility	(50)	(400)
Proceeds from issuance of common stock, net of expenses	0	4,315
Repurchase shares to fund tax withholdings for non-cash stock-based compensation	(27)	(41)
Purchase of treasury stock	(500)	0
Cash dividends paid	(112)	(86)
Other financing activities	(1)	1
Net cash (used in) provided by financing activities	(526)	7,981
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash inclusive of fiduciary cash	(27)	85
Net (decrease) increase in cash, cash equivalents and restricted cash inclusive of fiduciary cash	(16)	8,417
Cash, cash equivalents and restricted cash inclusive of fiduciary cash at beginning of period	3,815	2,502
Cash, cash equivalents and restricted cash inclusive of fiduciary cash at end of period	$ 3,799	$ 10,919

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 918	$ 1,079
Fiduciary cash	2,613	2,471
Commission, fees and other receivables	1,547	1,438
Fiduciary receivables	1,632	1,515
Reinsurance recoverable	591	647
Prepaid reinsurance premiums	850	980
Other current assets	541	484
Total current assets	8,692	8,614
Fixed assets, net	368	367
Operating lease assets	274	269
Goodwill	15,146	15,087
Amortizable intangible assets, net	4,570	4,906
Other assets	837	748
Total assets	29,887	29,991
Current Liabilities:
Fiduciary liabilities	4,245	3,986
Losses and loss adjustment reserve	612	671
Unearned premiums	953	1,053
Accounts payable	807	990
Accrued expenses and other liabilities	683	875
Current portion of long-term debt	413	719
Total current liabilities	7,713	8,294
Long-term debt less unamortized discount and debt issuance costs	7,346	6,894
Operating lease liabilities	248	243
Deferred income taxes, net	925	815
Other liabilities	1,047	1,172
Equity:
Common stock, par value $0.10 per share; authorized 560 shares; issued 359 shares and outstanding 330 shares at 2026, issued 357 shares and outstanding 336 shares at 2025	36	36
Additional paid-in capital	6,189	6,160
Treasury stock, at cost 29 shares at 2026 and 21 shares at 2025	(1,348)	(848)
Accumulated other comprehensive income	116	210
Non-controlling interests	25	26
Retained earnings	7,590	6,989
Total equity	12,608	12,573
Total liabilities and equity	$ 29,887	$ 29,991