BROWN & BROWN, INC. Annual Report, Year Ended Dec 31, 2017

Brown & Brown, Inc. (BRO) demonstrated robust growth in its 2017 fiscal year, with total revenues increasing by 6.5% to $1.88 billion. The company's core business, driven by commissions and fees, saw a 5.4% increase, supported by strong organic revenue growth of 4.4%. This growth was consistent across all four operating segments: Retail, National Programs, Wholesale Brokerage, and Services, highlighting the diversified nature of their business model. Net income saw a significant surge of 55.2% to $399.6 million, largely influenced by a substantial legal settlement that contributed to "Other Income." The company continues its strategy of acquiring and integrating new businesses, having completed eleven acquisitions in 2017, adding to its already extensive network of 238 locations across 40 states and several international locations. The company's financial health remains strong, with operating cash flow of $442 million, allowing for continued investment in growth, dividend payments, and share repurchases. Despite a modest increase in employee compensation and benefits as a percentage of revenue, the company maintained operational efficiency. The acquisition strategy, coupled with consistent organic growth and a focus on customer service, positions Brown & Brown for continued success in the insurance intermediary market. Investors can find reassurance in the company's consistent revenue growth trajectory and its ability to effectively integrate acquisitions, contributing to an overall positive financial performance.