7 Best Insurance Brokerage Stocks to Invest in Now

5. Brown & Brown Inc. (NYSE:BRO)

Number of Hedge Fund Holders: 26

Brown & Brown Inc. (NYSE:BRO), one of the largest insurance brokerage firms in the US, ranks among the top 5 on our list of the best insurance brokerage stocks to buy. The company specializes in risk management services. Brown & Brown Inc. (NYSE:BRO) operates through three main segments: Retail, Programs, and Wholesale Brokerage, providing insurance solutions to a wide range of clients, including businesses, governmental institutions, and individuals.

In the third quarter of 2024, the company completed 10 acquisitions with estimated annual revenues of $13 million. This strategic growth through mergers and acquisitions highlights Brown & Brown Inc.’s (NYSE:BRO) commitment to expanding its market presence and building strong relationships within the industry. For Q3 2024, the company reported revenues of $1.2 billion, reflecting an increase of 11% compared to the same quarter last year. Commissions and fees rose by 10.1%, while organic revenue grew by 9.5%.

Brown & Brown Inc.’s (NYSE:BRO) Q3 2024 financial performance has been impressive, with income before taxes reaching $317 million, a significant increase of 31% from the previous year. Net income attributable to the company was $234 million, up 33%. Diluted net income per share increased by 30.6% to $0.81. For the first nine months of 2024, total revenues were $3.6 billion, a 12.1% increase compared to the same period in 2023.

Over the past five years, Brown & Brown Inc. (NYSE:BRO) has grown its top line at a compound annual growth rate (CAGR) of 14.84%, while its bottom line has increased at a CAGR of 20.84% during the same period. Over the past 5 years, the company has also grown its levered free cash flow at a CAGR of 19.50%.

Brown & Brown Inc.’s (NYSE:BRO) strong growth, successful acquisition strategy, and solid financial performance position it as an attractive investment opportunity in the insurance brokerage sector. According to Insider Monkey’s database, 26 hedge funds held stakes in BRO in the second quarter of 2024.