(Reuters) -Brown & Brown posted a rise in second-quarter profit on Monday as the insurance broker benefited from higher commissions and fees driven by growing demand.
Insurance spending has continued to grow, even as businesses and individuals pull back in other areas, driven by efforts to guard against climate-related disasters and emerging risks such as cyber threats.
The sector’s resilience stems from its role as a financial safeguard, making it less sensitive to shifts in discretionary spending or broader economic slowdowns.
Its commissions and fees jumped 8.2% to $1.25 billion in the three months ended June 30.
Insurance brokerages such as Brown & Brown act as intermediaries between insurers and customers, helping clients find policies that best match their coverage needs.
Unlike insurance agents who usually represent one insurer, brokerages work with multiple providers to offer clients a wider range of coverage options.
In June, the company said it will buy rival Accession Risk Management in a $9.83 billion cash-and-stock deal.
The deal is expected to add heft to Brown & Brown’s property and casualty, and employee benefit insurance businesses, while bolstering its footing in the middle-market segment.
Total revenue increased 9.1% to $1.29 billion in the reported quarter.
Brown & Brown’s adjusted net income per share came at $1.03 per share in the second quarter. That compares with 93 cents per share, a year earlier.
(Reporting by Pritam Biswas and Manya Saini in Bengaluru; Editing by Leroy Leo)
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