Building Strong Relationships Brown & Brown’s business is built on a solid foundation of prideful relationships. Each Brown & Brown profit center is as successful as the relationships it cultivates with its employees and customers, as well as the industry partners that are so crucial in allowing the Company to provide clients with the best prices and terms available. Helping clients achieve their goals has resulted in our continued growth and financial success, and Brown & Brown remains committed to continually earning the respect of its customers and insurance industry partners. Through six decades of direct local involvement with customers, carriers and industry partners, Brown & Brown has established long-term, prideful relationships – many of which have evolved into acquisition opportunities. Acquisitions of agencies and accounts continue to play an integral part in the Company’s plan for geographic expansion and increased earnings. While purchasing freestanding agencies provides access to new markets, “fold-in” acquisitions allow the Company to integrate the operations of an acquired agency into one of its existing profit centers. Because the resources to handle the new business already exist, fold-in acquisitions offer the most profitable means for external growth. Expanding Through Acquisitions In identifying possible fold-in acquisition opportunities, Brown & Brown targets agencies with a proven record of profitability. Freestanding acquisition opportunities pose a greater challenge, requiring management to assess a new geographic territory or market area. In every case, Brown & Brown seeks high-quality people who can thrive in our aggressive “hunt if you want to eat” business culture. The Company takes considerable pride in the fact that in most cases acculturation of new agencies occurs quickly and smoothly without causing a drag on earnings. Brown & Brown remains committed to its ambitious strategy for external growth. In 2001, the Company successfully completed 26 acquisitions representing approximately $148 million in revenue. These acquisitions, which gave the Company entrance into 16 new states, dramatically enhanced our geographical footprint and increased market penetration, giving Brown & Brown added influence with insurance companies that want their products marketed regionally or nationally.