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Brown & Brown posts 2Q revenue gain, boosts AI investment focus

Second-quarter revenue rose 30.4% to $1.7 billion as it leaned on the Accession Risk Management acquisition, while adjusted EPS increased to $1.07.

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Brown & Brown said it reported second-quarter revenue of $1.7 billion, up 30.4%, driven largely by its acquisition of Accession Risk Management. The company also reported organic revenue down 0.7%, but higher revenue of 0.7% when contingent commissions were included.

In its earnings call discussion covered by Coverager, Brown & Brown reported an adjusted EBITDAC margin that fell one percentage point to 35.7%, while adjusted earnings per share increased 3.9% to $1.07. The insurer broker said it expects the “real benefits” of AI in years three, four and five, though it expects earlier gains in cycle times and productivity.

Brown & Brown said it is not positioning AI primarily as a cost-cutting tool, instead aiming to improve customer outcomes and help employees work faster. Management told Coverager that the company does not believe technology will replace risk advisers, brokers, or delegated underwriters, but rather will enhance their effectiveness.

To fund its AI work, Brown & Brown said it is redirecting existing technology resources away from maintaining the business toward data, analytics, and innovation, and that it is not calling out incremental technology spending “as of now.” The company also expanded its value management office to measure results of individual AI projects using defined performance indicators.

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