Thriving on Competition In the ever-changing environment of the insurance industry, Brown & Brown continues to answer new challenges, experiencing not only growth but also profitability. Success can be directly attributed to the Company’s internal competitive posture. Entrepreneurial-minded employees thrive in the Company’s unique “survival of the fittest” culture in which profit center managers are afforded a great deal of autonomy with ultimate responsibility for financial results, fostering an entrepreneurial spirit. In this environment, profit centers are measured against one another and against their own past performance. The Company supports this competitive spirit with a compensation structure in which managers either receive monetary rewards for decisions that lead to profitability, or forfeit higher bonuses for decisions that negatively affect profits. Annual sales meetings, which are designed to feature top performers and recognize successes, also serve as a forum to highlight the shortcomings of less successful offices and to encourage better future results. Ensuring Bottom-Line Profitability Equally important to the Company’s success has been its ability to maintain strong relationships with industry partners. Through a well-developed network of insurance companies, Brown & Brown can offer clients the highest-quality products and most competitive prices, leading to high customer satisfaction and increased sales. These relationships create a “win-win” situation in terms of increased profitability for the Company and for customers who benefit from Brown & Brown’s simultaneous national presence and local focus. Brown & Brown continues to concentrate on long-term growth and profitability. Over the past nine years, the Company has steadily increased earnings per share by 15% or more every year (excluding the effect of a one-time investment gain and income tax reserve adjustments) – a considerable accomplishment in any industry. By focusing on revenues that produce the highest margins and bolster its long-term objectives, Brown & Brown has successfully sustained profitable growth, while becoming the nation’s eighth-largest insurance intermediary in terms of top-line revenue.