A diversified insurance intermediary, Brown & Brown helps businesses and individuals find property, casualty, employee benefits, and personal insurance, plus specialty coverage for hard-to-place risks through brands like Arrowhead Programs and Bridge Specialty Group. It was founded in 1939 in Daytona Beach, Florida, as a two-person agency called Brown & Owen, named for founder J. Adrian Brown and his cousin Charles "Cov" Owen. Today, a large share of the company is owned by its own teammates, who are called "teammates."
Organic revenue declined 0.7% as acquisitions lifted total revenue 30.4% to $1.68B in Q2 FY2026.
The underlying business shrank this quarter. Total rose 30.4% to $1,676.0M and rose 7.7% to $0.84, but fell 0.7% while a $40M non-cash earn-out credit and acquisition growth drove the top line. The company is growing by deal, not by base business.
Key takeaways
decreased 0.7% as net new and renewal growth was offset by litigation-related impact and declining catastrophe property rates in Specialty Distribution, which fell 3.5% organically. Total rose 30.4% to $1,676.0M, driven by $393M from acquisitions and an 88.9% rise in to $85M. Income before income taxes rose 23.2% to $383.0M, helped by a $40M credit from lower estimated acquisition , a non-cash item, and expense . rose 7.7% to $0.84 and rose 24.7% to $288.0M , while fell 1.4 points to 22.9%. was $346.0M in the quarter and $608.0M for the first half of 2026; the company repurchased $500M in shares and held $975M in available credit. No new legal proceedings or risk-factor changes were disclosed versus the FY2025 10-K.
Section summaries
Management's Discussion and Analysis
Total revenues grew 30.4% to $1.68B driven by acquisitions and higher Contingents, while Organic Revenue declined 0.7%.
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Total revenues increased 30.4% to $1,676 million, driven by $393 million from acquisitions and an 88.9% rise in to $85 million.
decreased 0.7% as net new and renewal business growth was offset by the Litigation-Related Impact and declining catastrophe property rates in Specialty Distribution.
What changed
Q2 2026 came in at -0.7% versus the 0.0% Q1 2026 pace flagged to watch, confirming the base business did not stabilize and Specialty Distribution's -2.0% Q1 reading widened to -3.5%. The next earn-out settlement produced a $40M non-cash credit from lower estimated , reversing the Q1 2026 $150M paid out and the $64M escrow gain with a favorable swing rather than a charge. flowed through with $775M SOFR-floating debt at immaterial risk per the 10-Q's hypothetical 10% test, against the $838M flagged in Q1 2026. was not signaled this quarter; the $15.1B Accession-inflated balance carried from FY2025 with no annual test disclosed yet. rose 30.4% but fell 11.8% from Q1 2026's $1,901.0M as the acquisition increase from Accession lapped.
What to watch
Q3 2026 against the -0.7% Q2 pace to see if Specialty Distribution's -3.5% reverses or the base contracts further.
Next earn-out settlement to see if the $40M Q2 non-cash credit reverses into a charge.
signal at the next annual test on the $15.1B Accession-inflated balance.
as $775M SOFR-floating debt and the $4.2B notes flow through H2 2026 at current rates.
Income before income taxes rose 23.2% to $383 million, helped by a $40 million credit from lower estimated and expense .
Specialty Distribution's fell 3.5% due to declining CAT property rates, while Retail's Organic Revenue grew 1.5% from net new business.
was $608 million for the first half of 2026, and the company repurchased $500 million in shares while maintaining $975 million in available credit.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate, foreign exchange, and equity price exposures are each assessed as immaterial under hypothetical 10% shifts.
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Invested assets consist mainly of short-duration instruments whose fair value approximates , making interest rate risk immaterial.
The company does not actively invest or trade in equity securities and generally sells any significant equity received in acquisitions shortly after closing.
$775 million of floating-rate debt under the Third Amended and Restated Credit Agreement is tied to SOFR, but a hypothetical 10% interest rate change would not materially affect the financial statements.
Most international operations transact in their , limiting transactional currency risk; translation exposure arises from British pounds, Canadian dollars, euros, and other currencies.
A hypothetical 10% adverse change in foreign exchange rates would not have a material effect on the condensed consolidated financial statements.
In Item 3 of Part I of the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2025, certain information concerning litigation claims arising in the ordinary course of business was disclosed. Such information was current as of the date of filing. During t…
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In Item 3 of Part I of the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2025, certain information concerning litigation claims arising in the ordinary course of business was disclosed. Such information was current as of the date of filing. During the Company’s fiscal quarter ended June 30, 2026, no new legal proceedings, or material developments with respect to existing legal proceedings, occurred which require disclosure in this Quarterly Report on Form 10-Q.
There were no material changes in the risk factors previously disclosed in Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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There were no material changes in the risk factors previously disclosed in Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.