Brown & Brown, Inc. (BRO) Stock Analysis

Brown & Brown’s primary competitive advantage is its scale-driven access to exclusive insurance programs and superior commission economics. The company’s size and reputation enable it to negotiate override commissions 2–5% higher than industry averages and secure preferential capacity from carriers, especially in hard markets when insurance is scarce. This is a distinct edge over smaller brokers and even some larger rivals such as Arthur J. Gallagher and Truist Insurance, who lack BRO’s breadth of specialty program access.

BRO’s decentralized, entrepreneurial culture fosters local accountability and high sales productivity, supporting both organic growth (3.5% in Q3 2025) and successful integration of frequent, small acquisitions. The company’s disciplined M&A strategy—over 700 acquisitions since 1993—has built a diversified portfolio across retail, wholesale, and program segments, reducing reliance on any single market or carrier.

Customer retention is bolstered by deep specialization in niche and complex risks (e.g., public entities, flood, and specialty programs), which are less vulnerable to digital disintermediation than standard lines. BRO’s strong carrier relationships and delegated underwriting authority further differentiate it from digital-first competitors and generalist brokers.

Potential weaknesses include moderate exposure to cyclical commercial insurance pricing and integration risk from large acquisitions. However, BRO’s 10-year revenue CAGR of 11.8% and consistent EBITDA margins (35–37%) suggest its advantages are both durable and difficult for peers to replicate.