BRO's Acquisition Strategy Boosts Revenues: Margins in Focus?

Brown & Brown, Inc. BRO continues to stand out in the insurance brokerage industry, driven by a strong and disciplined acquisition strategy. The company has a long track record of deal-making, having acquired 717 insurance intermediary businesses from 1993 through the end of 2025. In 2025 alone, it completed 43 acquisitions, adding nearly $1.8 billion in annual revenues.

One recent example is the February 2026 acquisition of American Adventure Insurance, highlighting BRO’s targeted approach to niche markets. A key strength lies in its culture, where acquired firms retain their entrepreneurial spirit while benefiting from access to a broader global network.

Financial performance remains strong. Total revenues reached $5.9 billion in 2025, up 22.8% year over year. Growth was largely driven by the Accession acquisition, which closed in August 2025, for $9.83 billion. As the largest deal in the company’s history, it enhanced its specialty and wholesale distribution capabilities.

Strategically, the acquisition strengthens BRO’s platform by increasing scale and creating cross-selling opportunities. However, near-term challenges remain, as integration costs and lower margins from the acquired business have pressured profitability. Management remains confident in long-term benefits and margin expansion.

Overall, the company’s acquisition-led strategy continues to drive strong top-line growth. The focus now shifts to execution, as Brown & Brown’s ability to successfully integrate large deals and enhance margins will be critical to its long-term outlook.

What About BRO’s Competitors?

BRO closely competes with large firms like Arthur J. Gallagher & Co. AJG and Willis Towers Watson Public Limited Company WTW.

Arthur J. Gallagher is expanding steadily through mergers and acquisitions. In 2025, it completed 31 deals, adding about $3.5 billion in annualized revenue. AJG’s pipeline remains strong, with around 40 deals in progress worth roughly $350 million. Supported by solid cash flows, AJG expects to have nearly $10 billion available for future M&A.

Willis Towers Watson is growing through targeted acquisitions. It is expanding in markets like Italy, Canada, the U.K. and France while enhancing its offerings. The acquisition of Newfront adds a tech-driven broking platform. The planned acquisition of Cushon will strengthen its U.K. pensions business. WTW also agreed to acquire FlowStone Partners to expand in private markets. Overall, its disciplined M&A strategy supports long-term growth.

BRO’s Price Performance

Shares of Brown & Brown have lost 43.1% in the past 12 months, underperforming the industry’s 40.7% decline. 

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Valuation of BRO

Brown & Brown trades at a price-to-earnings ratio of 14.2, below the industry average of 15.2. It carries a Value Score of C.

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Estimates for BRO

The consensus estimate for 2026 and 2027 EPS indicates year-over-year growth of 7% and 9.3%, respectively. Over the past 30 days, estimates have seen one upward and one downward revision. The consensus estimate for revenues projects year-over-year growth of 23.4% in 2026 and 5.9% in 2027.

Brown & Brown currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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