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©Reuters.
(Reuters) – Insurance brokerage Brown & Brown (NYSE:) said on Monday its fourth-quarter profit rose 85% to $268.6 million, driven by higher investment returns and higher fees and commissions. reported.
The insurance industry typically enjoys a steady demand for its products regardless of economic conditions, as insurance policies are often guaranteed by employers, while others are mandated by governments.
Insurance brokers, such as Brown & Brown, act as a bridge between insurance companies and customers, helping customers find the insurance that best fits their needs.
The company’s core fees and commissions increased approximately 11.5% to $964 million in the three months ended Dec. 31.
Investment income soared to $18.5 million. 2023 stock benchmark index closed up about 24%, helped by strong performance from large-cap technology stocks and broad-based gains at the end of the year on expectations that the Federal Reserve is done raising interest rates. Ta.
Insurers also invest capital in interest rate-sensitive fixed income products, delivering solid returns in a “prolonged high interest rate” environment.
Brown & Brown is one of the nation’s largest independent insurance brokerage firms specializing in risk management. The company operates through his four business segments: Retail, National Programs, Wholesale Brokerage and Services.
The company said total revenue for the quarter increased 13.8% to approximately $1.03 billion.
Brown & Brown’s net income was 94 cents per diluted share, compared with 51 cents a year ago.
The company’s stock closed 0.6% higher at $75.29 on Monday. The stock ended 2023 with a nearly 25% increase.
(This article has been amended to correct the stock price in Section 10)
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