Improving Operating Efficiencies
Because financial reviews and decisions are made at the local level, closest to our clients, Brown & Brown’s accounting managers can quickly identify and react to financial data. As a result, Brown & Brown is one of the few brokers of its size that does not allow overdue accounts receivable to exceed 59 days. By managing expenses in every aspect of the Company’s operations, we have reached the goal announced four years ago of achieving a pre-tax margin of 28% – an extraordinary achievement, considering that the Public Broker industry average is only 16%. More notably, the Company has announced “Project B40” a new goal to achieve – in the not-too-distant future – an unprecedented 40% operating margin (pre-tax income with interest expense and amortization expense added back) and $1 billion in revenue.

In addition to reducing expenses, the Company has successfully sustained profitable growth, steadily increasing earnings per share by 15% or more per year for each of the past 10 years. With leadership clearly focused on bottom-line financial performance, we have consistently outperformed industry peers, realizing tremendous growth and profitability. Through focused efforts, and a presence in 30 states, Brown & Brown has become the nation’s sixth-largest insurance brokerage firm and the ninth-largest insurance intermediary in the world.