Since going public in 1993, Brown & Brown has consistently increased earnings per share each quarter by 15% or more -- a record unmatched in the industry. “We attribute much of our success to quality people throughout all levels of the company who are focused on top-line performance,” says Executive Vice President Jim Henderson. “With a corporate culture centered on ‘survival of the fittest’ and a compensation and recognition system that rewards achievement, we believe that our organization is framed for success.”

Brown & Brown’s ability to seed growth through acquisitions also contributes significantly to the company’s expansion and profitability. “Acquisitions, which account for nearly 50% of our overall annual growth, provide us with a crucial competitive advantage,” says Jim.

During the year and in the early weeks of 2001, Brown & Brown continued its aggressive strategy for external growth, completing more than 12 acquisitions. “In addition to giving us entrance into 13 new states, these acquisitions also dramatically expanded our geographic footprint, exposing us to an even greater inventory of potential acquisitions,” Jim notes.

While “freestanding” agencies have helped Brown & Brown expand its business into uncharted markets, “fold-in” acquisitions are also key to growth, allowing the company to integrate business from an acquired agency into one of its existing profit centers. “Because the infrastructure for handling new business through our mature profit centers already exists, ‘fold-in’ acquisitions are the most profitable way of expanding our business,” explains Jim.

A soft insurance market has reduced revenues industry-wide for several years, according to Jim. “As a result, we have been paddling upstream against a down business cycle for almost eight years. During this challenging time, we have ‘stayed our course,’ focusing on internal and external growth.” By concentrating its time and resources on those revenues that produce the highest margins for stockholders rather than the revenues that are the easiest or fastest to grow, Brown & Brown has successfully sustained profitable growth.

“As we begin 2001, with the promise of a hardening market, we believe that the fruits of our labor will be realized even further with greater increases in profitability,” concludes Jim.