Brown & Brown, Inc. (BRO) Stock Analysis

Brown & Brown’s primary competitive advantage is its scale and diversification across insurance brokerage segments. As of 2024, it is the fifth largest independent insurance broker in the U.S. and sixth globally, with $4.8 billion in annual revenue and operations spanning retail, programs, and wholesale brokerage. This breadth reduces reliance on any single product, carrier, or geography—its largest customer accounts for less than 1% of segment revenue, and no single insurer exceeds 5% of total commissions.

The company’s decentralized, sales-driven culture is a differentiator. Local offices retain autonomy, enabling responsiveness to client needs and entrepreneurial decision-making. This model supports high employee engagement—94% of teammates rated it a “Great Place to Work” in 2024—and underpins consistent organic growth (10.4% in 2024).

Brown & Brown’s acquisition track record is another edge. It has completed over 700 acquisitions since 1993, integrating specialty expertise and expanding its niche offerings. This contrasts with larger rivals like Marsh McLennan and Aon, which focus more on mega-deals and global accounts, and with smaller peers who lack comparable M&A capacity.

Financially, Brown & Brown’s EBITDAC margin (36.7% in 2024) is among the highest in the sector, reflecting disciplined cost control and strong carrier relationships. Its conservative balance sheet and recurring cash flows support ongoing investment and resilience through insurance cycles.

Potential threats include technology-driven disintermediation and pricing pressure from larger brokers, but Brown & Brown’s scale, culture, and acquisition engine provide a durable foundation.