News Release
                                                                                                Cory T. Walker
July 17, 2008                                                                           Chief Financial Officer
                                                                                                (386) 239-7250

BROWN & BROWN, INC.
ANNOUNCES A 3.6% INCREASE IN COMMISSIONS AND FEES REVENUES

(Daytona Beach and Tampa, Florida) . . . Brown & Brown, Inc. (NYSE:BRO) today announced its net income and net income per share for the second quarter of 2008.  Additionally, it announced that its total commissions and fees revenues for the second quarter of 2008 increased 3.6% over the second quarter of 2007.

Net income for the second quarter of 2008 was $40,398,000, or $0.29 per share, compared with $52,012,000, or $0.37 per share for the same quarter of 2007. Excluding the non-recurring gain of $9,823,000 on the sale of Rock-Tenn shares in the second quarter of 2007, net income for the second quarter of 2007 was $45,969,000, or $0.33 per share.  Total revenue for the second quarter ended June 30, 2008 was $241,720,000, compared with 2007 second-quarter revenue of $246,644,000.  Excluding the non-recurring gain of $9,823,000 on the sale of Rock-Tenn shares in the second quarter of 2007, total revenues for the second quarter of 2008 increased 2.1% over the adjusted total revenues in the corresponding quarter of 2007, which equaled $236,821,000.
 

Total revenue for the six-months ended June 30, 2008 was $498,435,000, compared with the total revenues for the first half of 2007 of $505,157,000.  Excluding the non-recurring gain of $18,664,000 on the sale of Rock-Tenn shares in the first half of 2007, total revenues for the first six-month period of 2008 increased 2.5% over the adjusted total revenues in the corresponding period of 2007, which equaled $486,493,000.  Net income for the six-month period ended June 30, 2008 was $92,158,000, or $0.65 per share, compared with $111,739,000, or $0.79 per share for the same period of 2007. Excluding the non-recurring gain of $18,664,000 on the sale of Rock-Tenn shares in the first half of 2007, net income for the six-month period ended June 30, 2008 was $92,158,000 compared to the adjusted net income of the comparable period in 2007 of $100,312,000.

J. Hyatt Brown, Chairman and Chief Executive Officer, noted, "Our results for the quarter were reflective of the continuing soft market.  The general economic slowdown varies in degree across our 38 states footprint, but is causing reductions in renewal exposure units in most locations and in most classes of business.  Even with this dual headwind, Brown & Brown has shown a dogged commitment to growth and margins.  The good news is we think 2009 should be better."
 

Jim W. Henderson, Vice Chairman and Chief Operating Officer, added, "The second quarter of 2008 was one of our more active periods for acquisitions with 13 transactions closing, representing $47.5 million in estimated annualized revenues.  For the year, we have closed 25 transactions with estimated annualized revenues of $79.0 million.  We are very proud of the high-quality class of agencies that have elected to join us.  The number of prospects for M&A continues to be very encouraging."

Brown & Brown, Inc. and its subsidiaries offer a broad range of insurance and reinsurance products and services, as well as risk management, third party administration, managed health care, and Medicare set-aside services and programs. Providing service to business, public entity, quasi-public entity, individual, trade and professional association clients nationwide, the Company is ranked by Business Insurance magazine as the United States' sixth 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 recent 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; the potential occurrence of a disaster that affects certain areas of the States of California, Florida, Georgia, Michigan, New Jersey, New York, Pennsylvania, Texas and/or Washington, where significant portions of the Company's business are concentrated; and the cost and impact on the Company of previously disclosed regulatory inquiries regarding industry and Company practices with respect to compensation received from insurance carriers. 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. 

 

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

 

Brown & Brown, Inc.
INTERNAL GROWTH SCHEDULE
Core Commissions and Fees⁽¹⁾
Three Months Ended June 30, 2008
  (in thousands)
(unaudited)

 

 

Reconciliation of Internal Growth Schedule
to Total Commissions and Fees
Included in the Consolidated Statements of Income
for the Three Months Ended June 30, 2008 and 2007
(in thousands)
(unaudited)

 

(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)