News Release

                                                                     Cory T. Walker

            July 18, 2011                                                                      Chief Financial Officer

                                                                                                       (386) 239-7250

BROWN & BROWN, INC. 

ANNOUNCES

SECOND-QUARTER FINANCIAL RESULTS

(Daytona Beach and Tampa, Florida) . . . Brown & Brown, Inc. (NYSE:BRO) today announced its financial results for the second quarter of 2011. 

Net income for the second quarter of 2011 was $37,035,000, or $0.26 per share, compared with $41,185,000, or $0.29 per share for the same quarter of 2010, a decrease of 10.1%.  Total revenue for the second quarter ended June 30, 2011 was $246,816,000, compared with 2010 second-quarter revenue of $243,665,000, an increase of 1.3%. 

Total revenue for the six months ended June 30, 2011 was $509,044,000, compared with total revenue for the first half of 2010 of $495,938,000.  Net income for the six-month period ended June 30, 2011 was $83,328,000, or $0.57 per share, compared with $85,313,000, or $0.59 per share for the same period of 2010.

J. Powell Brown, President and Chief Executive Officer of Brown & Brown, Inc., noted, "We were challenged this quarter by $4.2 million less in profit-sharing contingency commissions.  This is largely a reflection of rising loss ratios of property and casualty insurance carriers across the U.S.  We are pleased with the continued incremental improvements in certain segments of our business, most notably the second consecutive quarter of positive internal revenue growth in our Wholesale Brokerage Division."

Brown & Brown, Inc., through its subsidiaries, offers a broad range of insurance and reinsurance products and services.  Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third party administration, and other services. Serving business, public entity, individual, trade and professional association clients nationwide, the Company is ranked by Business Insurance magazine as the United States' seventh largest independent insurance intermediary. The Company's Web address is www.bbinsurance.com. 

This press release may contain certain statements relating to future results which are forward-looking statements, including those relating to future financial results and to acquisition opportunities. These statements are not historical facts, but instead represent only the Company's current belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results, financial condition and achievements may differ, possibly materially, from the anticipated results, financial condition and achievements contemplated by these forward-looking statements. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results and condition, as well as its other achievements, are contained in the Company's filings with the Securities and Exchange Commission. Some factors include: general economic conditions around the country; downward commercial property and casualty premium pressures; the effects of legislative and regulatory changes in Florida pertaining to the insurance industry, including those relating to coastal property coverages; the competitive environment; the integration of the Company's operations with those of businesses or assets the Company has acquired or may acquire in the future and the failure to realize the expected benefits of such integration; and the potential occurrence of a disaster that affects certain areas of the States of California, Florida, Indiana, Michigan, New Jersey, New York, Pennsylvania, Texas and/or Washington, where significant portions of the Company's business are concentrated.  All forward-looking statements made herein are made only as of the date of this release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware. 

# # #

Brown & Brown, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

For the
Three Months Ended
June 30

For the
Six Months Ended
June 30

2011

2010

2011

2010

REVENUES

Commissions and fees

$245,983

$241,053

$507,435

$491,727

Investment income

393

346

617

677

Other income, net

  __    440

       2,266

       992

      3,534

    Total revenues

  246,816

  243,665

  509,044

  495,938

EXPENSES

Employee compensation and benefits

125,852

121,372

252,409

243,555

Non-cash stock-based compensation

2,709

1,780

5,482

3,735

Other operating expenses

34,979

33,622

71,055

69,955

Amortization

13,556

12,650

27,065

25,203

Depreciation

3,079

3,129

6,214

6,382

Interest

     3,608

3,632

    7,215

7,240

Change in estimated acquisition earn-out payables

   1,565

      (533)

    1,466

   (1,229)

     Total expenses

185,348

  175,652

  370,906

  354,841

Income before income taxes

61,468

68,013

138,138

141,097

Income taxes

   24,433

   26,828

  54,810

   55,784

Net income

$ 37,035

$ 41,185

$ 83,328

$ 85,313

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Net income per share:

  Basic

$0.26

$0.29

$0.58

$0.60

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  Diluted

$0.26

$0.29

$0.57

$0.59

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Weighted average number of shares
  outstanding:

  Basic

138,379

137,685

138,365

137,654

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  Diluted

139,942

139,105

140,950

138,937

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Dividends declared per share

$0.0800

$0.0775

$0.1600

$0.1550

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Brown & Brown, Inc.

INTERNAL GROWTH SCHEDULE

Core Commissions and Fees⁽¹⁾

Three Months Ended June 30, 2011

  (in thousands)

(unaudited)

Quarter
Ended
06/30/11

Quarter
Ended
06/30/10

Total
Net
Change

Total
Net
Growth %

Less
Acquisition
Revenues

Internal
Net
Growth $

Internal
Net
Growth %

Florida Retail

      $  44,361

      $  42,735

$ 1,626

    3.8%

$        2,107

$        (481)

   (1.1)%

National Retail

83,102

79,359

    3,743

   4.7%

   10,145

         (6,402)

   (8.1)%

Western Retail

    24,991

     23,334

   1,657

     7.1%

    2,520

     (863)

   (3.7)%

  Total Retail

  152,454

   145,428

   7,026

   4.8%

  14,772

  (7,746)

   (5.3)%

Professional Programs

8,839

9,343

         (504)

    (5.4)%

        -

          (504)

(5.4)%

Special Programs

    24,582

    27,827

    (3,245)

  (11.7)%

            91

     (3,336)

   (12.0)%

  Total National Programs

    33,421

    37,170

  (3,749)

    (10.1)%

            91

  (3,840)

     (10.3)%

Wholesale Brokerage

41,713

41,298

415

    1.0%

     -

     415

  1.0%

Services

    16,120

      9,729

    6,391

  65.7%

     6,468

       (77)

  (0.8)%

Total Core Commissions

    and Fees ⁽¹⁾

$243,708

$233,625

$10,083

4.3%

$21,331

$(11,248)

(4.8)%

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Reconciliation of Internal Growth Schedule

to Total Commissions and Fees

Included in the Consolidated Statements of Income

For the Three Months Ended June 30, 2011 and 2010

(in thousands)

(unaudited)

Quarter
Ended
06/30/11

Quarter
Ended
06/30/10

Total core commissions and fees⁽¹⁾

$243,708

$233,625

Contingent commissions

  2,275

  6,444

Divested business

              -

         984

Total commission & fees

$245,983

$241,053

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(1)

  Total core commissions and fees are our total commissions and fees less (i) profit-sharing contingent commissions (revenue derived from special revenue-sharing commissions from insurance companies based upon the volume and the growth and/or profitability of the business placed with such companies during the prior year), and (ii) divested business (commissions and fees generated from offices, books of business or niches sold by the Company or terminated).

Brown & Brown, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)

June 30,

December 31,

2011

2010

ASSETS

Current assets:

  Cash and cash equivalents

$     278,866

$     272,984

  Restricted cash and investments

   120,073

   123,594

  Short-term investments

7,737

7,678

  Premiums, commissions and fees receivable

247,718

214,446

  Deferred income taxes

8,143

20,076

  Other current assets

        34,524

        14,031

    Total current assets

697,061

652,809

Fixed assets, net

60,039

59,713

Goodwill

1,261,627

1,194,827

Amortizable intangible assets, net

488,367

481,900

Other assets

       17,778

       11,565

    Total assets

$2,524,872

$2,400,814

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LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

  Premiums payable to insurance companies

$   358,913

$   311,346

  Premium deposits and credits due customers

24,992

28,509

  Accounts payable

31,805

33,693

  Accrued expenses and other liabilities

85,637

94,947

  Current portion of long-term debt

        1,624

        1,662

    Total current liabilities

502,971

470,157

Long-term debt

250,067

250,067

Deferred income taxes, net

159,900

146,482

Other liabilities

39,003

27,764

Shareholders' equity:

  Common stock, par value $0.10 per share;
     authorized 280,000 shares;  issued and
     outstanding 142,924 at 2011 and 142,795 at 2010

14,292

14,279

  Additional paid-in capital

293,081

286,997

  Retained earnings

1,265,553

1,205,061

  Accumulated other comprehensive income

           5

           7

    Total shareholders' equity

  1,572,931

  1,506,344

    Total liabilities and shareholders' equity

$2,524,872

$2,400,814

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