Brown & Brown, Inc. Announces a 35.9% Increase…

Brown & Brown, Inc. Announces a 35.9% Increase in Fourth-Quarter Net Income

DAYTONA BEACH, FL and TAMPA, FL, Feb 07, 2011 (MARKETWIRE via COMTEX) –

Brown & Brown, Inc. (NYSE: BRO) today announced its net income and net income per share for the fourth quarter of 2010.

Net income for the fourth quarter of 2010 was $32,146,000, or $0.22 per share, compared with $23,653,000, or $0.17 per share for the same quarter of 2009. Total revenue for the fourth quarter ended December 31, 2010 was $229,938,000, compared with 2009 fourth-quarter revenue of $214,162,000.

Total revenue for the twelve months ended December 31, 2010 was $973,492,000, compared with total revenue for the twelve months ended December 31, 2009 of $967,877,000. Net income for the twelve-month period ended December 31, 2010 was $161,752,000, or $1.12 per share, compared with $153,294,000, or $1.08 per share, for the same period of 2009.

J. Powell Brown, President and Chief Executive Officer of Brown & Brown, Inc., noted, “2010 was another challenging year and yet we continued to add value for our clients and grow our business. We are proud of all of our team members. Our fourth-quarter and annual results are a testament to the dedication of our people.”

Brown & Brown, Inc., through its subsidiaries offers a broad range of insurance and reinsurance products and services. Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third party administration, and other services. Serving business, public entity, individual, trade and professional association clients nationwide, the Company is ranked by Business Insurance magazine as the United States’ seventh 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 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, Indiana, 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.

                            Brown & Brown, Inc.
                    CONSOLIDATED STATEMENTS OF INCOME
                  (in thousands, except per share data)
                                (unaudited)
                                        For the              For the
                                  Three Months Ended   Twelve Months Ended
                                      December 31          December 31
                                --------------------- ---------------------
                                   2010       2009       2010       2009
                                ---------- ---------- ---------  ----------
REVENUES
Commissions and fees            $  229,088 $  213,288 $ 966,917  $  964,863
Investment income                      304        216     1,326       1,161
Other income, net                      546        658     5,249       1,853
                                ---------- ---------- ---------  ----------
    Total revenues                 229,938    214,162   973,492     967,877
                                ---------- ---------- ---------  ----------
EXPENSES
Employee compensation and
 benefits                          122,264    115,107   487,820     484,680
Non-cash stock-based
 compensation                        1,615      2,115     6,845       7,358
Other operating expenses            34,595     36,382   135,851     143,389
Amortization                        13,370     12,485    51,442      49,857
Depreciation                         3,141      3,285    12,639      13,240
Interest                             3,624      3,711    14,471      14,599
Change in estimated acquisition
 earn-out payables                    (638)         -    (1,674)          -
                                ---------- ---------- ---------  ----------
     Total expenses                177,971    173,085   707,394     713,123
                                ---------- ---------- ---------  ----------
Income before income taxes          51,967     41,077   266,098     254,754
Income taxes                        19,821     17,424   104,346     101,460
                                ---------- ---------- ---------  ----------
Net income                      $   32,146 $   23,653 $ 161,752  $  153,294
                                ========== ========== =========  ==========
Net income per share:
  Basic                         $     0.23 $     0.17 $    1.14  $     1.08
                                ========== ========== =========  ==========
  Diluted                       $     0.22 $     0.17 $    1.12  $     1.08
                                ========== ========== =========  ==========
Weighted average number of
 shares outstanding:
  Basic                            138,190    137,531   137,924     137,173
                                ========== ========== =========  ==========
  Diluted                          139,660    137,779   139,318     137,507
                                ========== ========== =========  ==========
Dividends declared per share    $     0.08 $   0.0775 $  0.3125  $   0.3025
                                ========== ========== =========  ==========
                            Brown & Brown, Inc.
                         INTERNAL GROWTH SCHEDULE
                       Core Commissions and Fees(1)
                   Three Months Ended December 31, 2010
                              (in thousands)
                                (unaudited)
                                          Total    Less   Internal Internal
                Quarter  Quarter  Total    Net    Acquisi-   Net      Net
                 Ended    Ended    Net    Growth   tion    Growth    Growth
               12/31/10 12/31/09  Change    %     Revenues    $        %
               -------- -------- -------  -----   ------- -------   -----
Florida Retail $ 37,382 $ 37,014 $   368    1.0%  $ 1,452 $(1,084)   (2.9)%
National
 Retail          74,589   71,527   3,062    4.3%    5,588  (2,526)   (3.5)%
Western Retail   22,375   22,594    (219)  (1.0)%   2,131  (2,350)  (10.4)%
               -------- -------- -------          ------- -------
  Total Retail  134,346  131,135   3,211    2.4%    9,171  (5,960)   (4.5)%
               -------- -------- -------          ------- -------
Professional
 Programs        10,842   11,493    (651)  (5.7)%       -    (651)   (5.7)%
Special
 Programs        30,107   30,417    (310)  (1.0)%       -    (310)   (1.0)%
               -------- -------- -------          ------- -------
Total National
 Programs        40,949   41,910    (961)  (2.3)%       -    (961)   (2.3)%
               -------- -------- -------          ------- -------
Wholesale
 Brokerage       31,433   31,389      44    0.1%       59     (15)    0.0 %
Services         15,975    8,049   7,926   98.5%    7,987     (61)   (0.8)%
               -------- -------- -------          ------- -------
Total Core
 Commissions
 and Fees (1)  $222,703 $212,483 $10,220    4.8%  $17,217 $(6,997)   (3.3)%
               ======== ======== =======  =====   ======= =======  ======
                Reconciliation of Internal Growth Schedule
                      to Total Commissions and Fees
            Included in the Consolidated Statements of Income
          For the Three Months Ended December 31, 2010 and 2009
                              (in thousands)
                                (unaudited)
                                                Quarter Ended Quarter Ended
                                                   12/31/10      12/31/09
                                                ------------- -------------
 Total core commissions and fees(1)             $     222,703 $     212,483
 Contingent commissions                                 6,385           484
 Divested business                                          -           321
                                                ------------- -------------
 Total commission & fees                        $     229,088 $     213,288
                                                ============= =============

(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)
                                                 December 31,  December 31,
                                                     2010          2009
                                                ------------- -------------
ASSETS
Current assets:
Cash and cash equivalents                       $     272,984 $     197,113
  Restricted cash and investments                     123,594       155,257
  Short-term investments                                7,678         8,213
  Premiums, commissions and fees receivable           214,446       209,462
  Deferred income taxes                                20,076        11,791
  Other current assets                                 14,031        31,863
                                                ------------- -------------
    Total current assets                              652,809       613,699
Fixed assets, net                                      59,713        61,467
Goodwill                                            1,194,827     1,074,397
Amortizable intangible assets, net                    481,900       468,862
Other assets                                           11,565         5,801
                                                ------------- -------------
    Total assets                                $   2,400,814 $   2,224,226
                                                ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Premiums payable to insurance companies       $     311,346 $     310,296
  Premium deposits and credits due customers           28,509        37,715
  Accounts payable                                     33,693        17,431
  Accrued expenses and other liabilities               94,947        96,387
  Current portion of long-term debt                     1,662        17,124
                                                ------------- -------------
    Total current liabilities                         470,157       478,953
Long-term debt                                        250,067       250,209
Deferred income taxes, net                            146,482       115,609
Other liabilities                                      27,764         9,581
Shareholders' equity:
  Common stock, par value $0.10 per share;
   authorized 280,000 shares; issued and
   outstanding 142,795 at 2010 and 142,076 at
   2009                                                14,279        14,208
  Additional paid-in capital                          286,997       267,856
  Retained earnings                                 1,205,061     1,087,805
  Accumulated other comprehensive income                    7             5
                                                ------------- -------------
    Total shareholders' equity                      1,506,344     1,369,874
                                                ------------- -------------
    Total liabilities and shareholders' equity  $   2,400,814 $   2,224,226
                                                ============= =============

Cory T. Walker
Chief Financial Officer
(386) 239-7250

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