Letter (continued)
The attitudes of Brown & Brown's people, across our system, ultimately make the difference between making our stretch goals and simply being average or less. The ability of Brown & Brown to provide opportunity for personal financial advancement via stock purchase is a very important part of our operating model. Approximately 36% of the stock of our company is owned by our employees. (Subtracting the Brown family’s shares, approximately $160 million of shareholder value, resides with some 1,050 employee shareholders.) In addition to performance stock for a broad base of our leadership, we also encourage all employees to consider investing in the Employee Stock Purchase Plan – a payroll deduction plan whereby up to 10% of compensation can be deducted over 12 months, and Brown & Brown stock is then purchased at 85% of the lower of stock prices on July 31 of the current or preceding year.

In addition to the stock market’s recognition of our company’s results, Forbes magazine’s annual list of 200 Best Small Companies in America for the year 2000 placed us at #93 – up from #106 in 1999. Our selection by Forbes appears to be made based on earnings growth rate and return on equity. For the year 2000, our return on beginning equity was 32%.

As I travel regularly from office to office, I am constantly queried by people from the mailroom to the Profit Center Managers about the state of the company, what the stock price is going to do in the future, etc., etc., etc. Possibly the single greatest advantage of public ownership for Brown & Brown is the ability to provide the opportunity for wealth creation for people anywhere in our organization who believe in our culture and are proud to be part of a focused, driven and highly efficient team.

The Brown & Brown team is looking forward to another outstanding year in 2001. Our quest for excellence is inexorable. Our company is truly poised to move to the next level – 2001 will be exciting!!!

J. Hyatt Brown, CPCU, CLU
Chairman, President and Chief Executive Officer