Brown & Brown, Inc. (BRO) Stock Analysis

Brown & Brown’s primary competitive advantage is its disciplined, decentralized acquisition strategy. The company has completed over 990 acquisitions since inception, integrating specialty brokers and niche agencies at a steady pace.¹ This approach has enabled consistent double-digit revenue growth (12% CAGR over the past decade)² and a broadening of capabilities across property, casualty, employee benefits, and specialty lines.³ Unlike larger rivals such as Marsh McLennan or Aon, which focus on mega-deals and global scale, Brown & Brown targets smaller, often under-managed agencies, preserving local relationships and entrepreneurial culture.⁴

The company’s operating model emphasizes local autonomy, which fosters high employee retention and customer satisfaction.⁵ Approximately 56% of U.S. employees own stock, aligning incentives and supporting a meritocratic, performance-driven culture.⁶ This is reflected in industry-leading organic growth rates (6.5% in Q1 2025) and EBITDAC margins (38.1% in Q1 2025), outpacing most peers.⁷

Brown & Brown’s conservative balance sheet and strong cash flow conversion (over 20% of revenue) provide flexibility to fund acquisitions and weather industry cycles.⁸ Its focus on middle-market and specialty niches reduces direct exposure to price competition from global brokers and insurtech disruptors.⁹ However, the company faces ongoing threats from digital platforms and consolidation among carriers, which could erode commission rates or bargaining power over time.¹⁰ Nonetheless, its track record of integration, culture, and capital discipline remains a durable edge.¹¹