Jan 26 (Reuters) – Brown & Brown reported a rise in fourth-quarter adjusted profit on Monday, as the insurance broker benefited from higher income from commissions and fees on the back of strong demand.
Insurance providers are seeing increased demand as consumers and businesses boost coverage amid growing climate and cyber risks.
Global insured losses from natural disasters surpassed $100 billion in 2025 for the sixth year in a row, according to a study by Swiss Re Institute.
Brown & Brown, which specializes in risk management, posted a 36% jump in commissions and fees to $1.58 billion in the quarter ended December 31.
Total revenue increased to $1.61 billion in the reported quarter, from $1.18 billion a year earlier.
Insurance bellwether Travelers last week beat fourth-quarter profit estimates on stronger underwriting. Commercial insurer W. R. Berkley also posted higher earnings on Monday, helped by steady underwriting performance.
Insurers use capital from collected premiums and invest them in yield-generating assets, usually low-risk ones such as government bonds until claims need to be paid out.
The company’s investment and other income rose to $27 million in the quarter, versus $23 million a year earlier.
Brown & Brown acts as an intermediary between insurers and customers and works with multiple providers to offer a broad suite of policies.
It reported an adjusted profit per share of 93 cents in the quarter, compared with 86 cents per share a year earlier.
(Reporting by Pragyan Kalita in Bengaluru; Editing by Leroy Leo and Alan Barona)
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