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Brown & Brown, Inc. Announces 5.2% Increase in Total Revenues

October 17, 2011

DAYTONA BEACH, FL and TAMPA, FL, Oct 17, 2011 (MARKETWIRE via COMTEX) --

Brown & Brown, Inc. (NYSE: BRO) today announced its financial results for the third quarter of 2011.

Net income for the third quarter of 2011 was $44,173,000, or $0.30 per share, compared with $44,293,000, or $0.31 per share for the same quarter of 2010, a decrease of 0.3%. Total revenue for the third quarter ended September 30, 2011 was $260,401,000, compared with 2010 third-quarter revenue of $247,616,000, an increase of 5.2%.

Total revenue for the nine months ended September 30, 2011 was $769,445,000, compared with total revenue for the same period of 2010 of $743,554,000. Net income for the nine-month period ended September 30, 2011 was $127,501,000, or $0.88 per share, compared with $129,606,000, or $0.90 per share for the same period of 2010.

J. Powell Brown, President and Chief Executive Officer of Brown & Brown, Inc., noted, "We continue to swim upstream against a very difficult economy. We are pleased that our Services, National Programs and Wholesale Brokerage Divisions achieved positive internal revenue growth for the third quarter."

In the third quarter of 2011, $2,600,000 was expensed as a result of a legal claim first raised in 1994 that a subsidiary of the Company vigorously defended for 17 years until exhausting all appellate avenues for review. This claim expense reduced the Company's diluted net income per share for the third quarter of 2011 by $0.01.

Brown & Brown, Inc., through its subsidiaries, offers a broad range of insurance and reinsurance products and services. Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third party administration, and other services. Serving business, public entity, individual, trade and professional association clients nationwide, the Company is ranked by Business Insurance magazine as the United States' seventh largest independent insurance intermediary. The Company's Web address is www.bbinsurance.com.

This press release may contain certain statements relating to future results which are forward-looking statements, including those relating to future financial results and to acquisition opportunities. These statements are not historical facts, but instead represent only the Company's current belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results, financial condition and achievements may differ, possibly materially, from the anticipated results, financial condition and achievements contemplated by these forward-looking statements. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results and condition, as well as its other achievements, are contained in the Company's filings with the Securities and Exchange Commission. Some factors include: general economic conditions around the country; downward commercial property and casualty premium pressures; the effects of legislative and regulatory changes in Florida pertaining to the insurance industry, including those relating to coastal property coverages; the competitive environment; the integration of the Company's operations with those of businesses or assets the Company has acquired or may acquire in the future and the failure to realize the expected benefits of such integration; and the potential occurrence of a disaster that affects certain areas of the States of California, Florida, Indiana, Michigan, New Jersey, New York, Pennsylvania, Texas and/or Washington, where significant portions of the Company's business are concentrated. All forward-looking statements made herein are made only as of the date of this release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware.

                            Brown & Brown, Inc.
                     CONSOLIDATED STATEMENTS OF INCOME
                   (in thousands, except per share data)
                                (unaudited)

                                          For the             For the
                                    Three Months Ended   Nine Months Ended
                                       September 30         September 30
                                   -------------------- -------------------
                                      2011       2010      2011      2010
                                   ---------  --------- --------- ---------
REVENUES
Commissions and fees               $ 257,177  $ 246,102 $ 764,612 $ 737,829
Investment income                        317        345       934     1,022
Other income, net                      2,907      1,169     3,899     4,703
                                   ---------  --------- --------- ---------
    Total revenues                   260,401    247,616   769,445   743,554
                                   ---------  --------- --------- ---------

EXPENSES
Employee compensation and benefits   126,877    122,001   379,286   365,556
Non-cash stock-based compensation      2,856      1,495     8,338     5,230
Other operating expenses              38,434     31,301   109,489   101,256
Amortization                          13,725     12,869    40,790    38,072
Depreciation                           3,062      3,116     9,276     9,498
Interest                               3,565      3,607    10,780    10,847
Change in estimated acquisition
 earn-out payables                      (810)       193       656    (1,036)
                                   ---------  --------- --------- ---------
    Total expenses                   187,709    174,582   558,615   529,423
                                   ---------  --------- --------- ---------

Income before income taxes            72,692     73,034   210,830   214,131

Income taxes                          28,519     28,741    83,329    84,525
                                   ---------  --------- --------- ---------

Net income                         $  44,173  $  44,293 $ 127,501 $ 129,606
                                   =========  ========= ========= =========

Net income per share:
  Basic                            $    0.31  $    0.31 $    0.89 $    0.91
                                   =========  ========= ========= =========
  Diluted                          $    0.30  $    0.31 $    0.88 $    0.90
                                   =========  ========= ========= =========

Weighted average number of shares
 outstanding:
  Basic                              138,690    138,093   138,475   137,802
                                   =========  ========= ========= =========
  Diluted                            140,443    139,507   140,120   139,128
                                   =========  ========= ========= =========

Dividends declared per share       $  0.0800  $  0.0775 $  0.2400 $  0.2325
                                   =========  ========= ========= =========


                            Brown & Brown, Inc.
                         INTERNAL GROWTH SCHEDULE
                       Core Commissions and Fees (1)
                   Three Months Ended September 30, 2011
                              (in thousands)
                                (unaudited)

                                       Total     Less
            Quarter  Quarter  Total     Net    Acquisi- Internal  Internal
             Ended    Ended    Net    Growth     tion     Net       Net
           09/30/11 09/30/10  Change     %     Revenues Growth $  Growth %
           -------- -------- -------  ------   -------- --------  --------

Florida
 Retail    $ 34,840 $ 34,173 $   667     2.0%  $  1,674 $ (1,007)     (2.9)%
National
 Retail      87,307   80,611   6,696     8.3%    10,227   (3,531)     (4.4)%
Western
 Retail      26,680   25,028   1,652     6.6%     3,539   (1,887)     (7.5)%
           -------- -------- -------           -------- --------
 Total
  Retail    148,827  139,812   9,015     6.4%    15,440   (6,425)     (4.6)%
           -------- -------- -------           -------- --------

Professional
 Programs    11,525   11,675    (150)   (1.3)%        -     (150)     (1.3)%
Special
 Programs    38,637   37,542   1,095     2.9%       675      420       1.1%
           -------- -------- -------           -------- --------
Total
 National
 Programs    50,162   49,217     945     1.9%       675      270       0.5%
           -------- -------- -------           -------- --------

Wholesale
 Brokerage   34,505   34,369     136     0.4%         -      136       0.4%

Services     16,450   11,786   4,664    39.6%     4,352      312       2.6%
           -------- -------- -------           -------- --------

Total Core
 Commissions
 and
 Fees (1)  $249,944 $235,184 $14,760     6.3%  $ 20,467 $ (5,707)     (2.4)%
           ======== ======== =======           ======== ========


                 Reconciliation of Internal Growth Schedule
                        to Total Commissions and Fees
              Included in the Consolidated Statements of Income
           For the Three Months Ended September 30, 2011 and 2010
                               (in thousands)
                                 (unaudited)
                                                    Quarter       Quarter
                                                     Ended         Ended
                                                    09/30/11      09/30/10
                                                 ------------- -------------
      Total core commissions and fees (1)        $     249,944 $     235,184
      Contingent commissions                             7,233         9,667
      Divested business                                      -         1,251
                                                 ------------- -------------

      Total commission & fees                    $     257,177 $     246,102
                                                 ============= =============

(1) Total core commissions and fees are our total commissions and fees less
    (i) profit-sharing contingent commissions (revenue derived from special
    revenue-sharing commissions from insurance companies based upon the
    volume and the growth and/or profitability of the business placed with
    such companies during the prior year), and (ii) divested business
    (commissions and fees generated from offices, books of business or
    niches sold by the Company or terminated).


                             Brown & Brown, Inc.
                         CONSOLIDATED BALANCE SHEETS
                    (in thousands, except per share data)
                                 (unaudited)


                                                 September 30,  December 31,
                                                      2011          2010
                                                 ------------- -------------
ASSETS
Current assets:
  Cash and cash equivalents                      $     334,497 $     272,984
  Restricted cash and investments                      146,033       123,594
  Short-term investments                                 7,612         7,678
  Premiums, commissions and fees receivable            212,051       214,446
  Deferred income taxes                                  8,837        20,076
  Other current assets                                  23,664        14,031
                                                 ------------- -------------
    Total current assets                               732,694       652,809

Fixed assets, net                                       59,807        59,713
Goodwill                                             1,268,957     1,194,827
Amortizable intangible assets, net                     481,930       481,900
Other assets                                            17,915        11,565
                                                 ------------- -------------
    Total assets                                 $   2,561,303 $   2,400,814
                                                 ============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Premiums payable to insurance companies        $     325,996 $     311,346
  Premium deposits and credits due customers            46,440        28,509
  Accounts payable                                      24,062        33,693
  Accrued expenses and other liabilities                90,641        94,947
  Current portion of long-term debt                      1,142         1,662
                                                 ------------- -------------
    Total current liabilities                          488,281       470,157

Long-term debt                                         250,603       250,067

Deferred income taxes, net                             167,074       146,482

Other liabilities                                       38,784        27,764

Shareholders' equity:
  Common stock, par value $0.10 per share;
   authorized 280,000 shares; issued and
   outstanding 143,382 at 2011 and 142,795 at
   2010                                                 14,338        14,279
  Additional paid-in capital                           303,966       286,997
  Retained earnings                                  1,298,256     1,205,061
  Accumulated other comprehensive income                     1             7
                                                 ------------- -------------

    Total shareholders' equity                       1,616,561     1,506,344
                                                 ------------- -------------

    Total liabilities and shareholders' equity   $   2,561,303 $   2,400,814
                                                 ============= =============

Cory T. Walker
Chief Financial Officer
(386) 239-7250


SOURCE: Brown & Brown, Inc.


  
      

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