BRO

It has been about a month since the last earnings report for Aon (AON). Shares have lost about 4.6% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Aon due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Aon plc before we dive into how investors and analysts have reacted as of late. Aon Q2 Earnings Beat Estimates on New Business Wins, Strong Retention Aon reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year. Total revenues of $4.2 billion grew 2% year over year.  The top line missed the consensus mark by 0.4%. Organic revenue growth was 5%. The quarterly results were supported by strong organic revenue growth, healthy client retention, operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by weakness in Wealth Solutions. Total operating expenses inched up 1% year over year to $3.3 billion due to higher expenses related to organic revenue growth, investments in long-term growth and unfavorable foreign currency translation. This was partly offset by lower expenses associated with the sale of NFP Wealth. The metric was in line with our estimate. Adjusted operating income amounted to $1.2 billion, up 5% year over year and in line with our estimate. The metric benefited from organic revenue growth, scale improvements in scale improvements in Aon Business Services (ABS) and net restructuring savings, partially offset by growth investments. Adjusted operating margin improved 70 basis points year over year to 28.9%. Commercial Risk Solutions: Organic revenues rose 5% year over year in the second quarter on the back of new business and strong retention rates across North America and EMEA. Revenues in this solution line advanced 5% year over year to $2.3 billion, in line with the Zacks Consensus Estimate. Reinsurance Solutions: Organic revenues grew 5% year over year, driven by increased treaty placements, new business wins and strong client retention, along with growth in facultative placements. Revenues amounted to $711 million, which improved 3% year over year but missed the consensus mark by 1%. Health Solutions: Organic revenues inched up 5% year over year as a result of new business growth, strong retention rates and positive market impact. The solution line’s revenues increased 6% year over year to $818 million, which beat the Zacks Consensus Estimate by 0.4%. Wealth Solutions: Organic revenue growth of 5% was driven by expansion in Retirement and continued demand for advisory services in the UK and EMEA amid ongoing regulatory changes. Revenues totaled $426 million, down 18% year over year. The metric lagged the consensus mark by 3.2%. Aon exited the second quarter with cash and cash equivalents of $1.1 billion, which declined 11.1% from the 2025-end level. Total assets of $53.3 billion increased 5% from the 2025-end figure. Long-term debt amounted to $12.9 billion, down 11.7% from the figure as of Dec. 31, 2025. Short-term debt and the current portion of long-term debt totaled $2 billion. Aon generated cash flow from operations of $556 million, which decreased 30% year over year. Adjusted free cash flow decreased 34% year over year to $483 million. Aon bought back 1.9 million Class A ordinary shares for roughly $600 million in the second quarter of 2026. It also returned $175 million to shareholders through dividends. As of June 30, 2026, the company had approximately $7.7 billion remaining under its share repurchase authorization. Aon expects mid-single-digit or higher organic revenue growth in 2026. The company anticipates adjusted operating margin expansion of 70-80 basis points. It projects strong growth in adjusted EPS for the year. Free cash flow is likely to grow at a double-digit rate, while the tax rate is expected to be in the 19.5-20.5% range. In the past month, investors have witnessed a downward trend in estimates review. At this time, Aon has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Aon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Aon belongs to the Zacks Insurance - Brokerage industry. Another stock from the same industry, Brown & Brown (BRO), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Brown & Brown reported revenues of $1.68 billion in the last reported quarter, representing a year-over-year change of +30.4%. EPS of $1.07 for the same period compares with $1.03 a year ago. For the current quarter, Brown & Brown is expected to post earnings of $1.09 per share, indicating a change of +3.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Brown & Brown. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aon plc (AON) : Free Stock Analysis Report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Brown & Brown (BRO). Shares have lost about 0.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Brown & Brown due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Brown & Brown Q2 Earnings Miss Estimates on Weak Organic GrowthBrown & Brown, Inc.’s second-quarter 2026 adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line increased 3.9% year over year. Revenues of $1.67 billion missed the consensus mark by 2.9% but increased 30.4% year over year. Acquisition activity supported the top line, while organic revenues declined 0.7%. Commissions and fees rose 32.4% to $1.65 billion, while investment and other income declined to $22 million from $36 million. Adjusted EBITDAC margin contracted 100 basis points to 35.7%. Adjusted net income attributable to the company increased 18.4% to $361 million. However, a 14% increase in the diluted weighted-average share count limited per-share growth. GAAP net income rose 24.7% to $288 million, while diluted GAAP earnings increased 7.7% to 84 cents. Organic revenues decreased 0.7% to $1.18 billion. Organic revenues with contingent commissions increased 0.7% to $1.24 billion, supported by higher profit-sharing commissions from insurance carriers. Core commissions and fees increased 30.3% year over year to $1.57 billion. Investment income and other income decreased 39% year over year to $22 million. Retail revenues increased 35.9% year over year to $947 million, primarily due to acquisition activity. Organic revenues advanced 1.5% to $678 million, while organic revenues with contingents increased 2.5% to $692 million.Net new business and exposure-unit expansion supported organic growth. These gains were partially offset by declines in catastrophe property rates and lower revenues from a specialty pharmacy business. Adjusted EBITDAC climbed 46.9% to $282 million, and the margin expanded 230 basis points to 29.8%. Specialty Distribution revenues increased 28.1% to $721 million, aided by acquisitions and higher contingent commissions. Organic revenues, however, declined 3.5% to $498 million, while organic revenues with contingents fell 1.6% to $545 million.Declining catastrophe property rates and approximately $10 million of new-business timing pressure weighed on the segment. Adjusted EBITDAC rose 17.1% to $308 million, but the adjusted margin contracted 400 basis points to 42.7% amid weaker organic revenues and investments in European capabilities. Total expenses increased 32.8% year over year to $1.29 billion. Employee compensation and benefits rose 31% to $838 million, while other operating expenses increased 28.4% to $271 million. Amortization more than doubled to $110 million, and interest expense increased 96% to $100 million. Adjusted EBITDAC rose 27% to $598 million, but growth trailed the top-line increase, resulting in margin contraction. Adjusted income before taxes increased 17.4% to $480 million. Net cash provided by operating activities increased 13% to $608 million during the first six months of 2026. Cash and cash equivalents were $918 million as of June 30, down from $1.08 billion at the end of 2025.The company repurchased $250 million of stock during the second quarter. Brown & Brown also paid $112 million in dividends and declared a quarterly dividend of 16.5 cents per share, up 10% year over year. Management expects rate changes across most admitted insurance lines in the second half of 2026 to remain relatively similar to second-quarter levels. Casualty and auto rates continued to increase, while property and workers’ compensation pricing was flat to lower.Excess-and-surplus casualty rates are expected to keep rising because of the legal environment. Brown & Brown does not expect catastrophe property rates to change materially in the second half compared with the first. Capital deployment will focus on share repurchases; internal investment, debt reduction and acquisitions centered on specialty businesses. In the past month, investors have witnessed a upward trend in estimates review. At this time, Brown & Brown has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Brown & Brown has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Brown & Brown stock has delivered a 30.9% total return over the past five years, yet its valuation checks send mixed signals, with the Excess Returns intrinsic value estimate pointing to upside while earnings-based multiples screen the shares as expensive. That gap in views is sharpened by a weak 1 year share price result alongside a recent bounce. Over five years, Brown & Brown has returned 30.9%, which signals the stock has still created value for long term holders despite shorter term setbacks. The durability of Brown & Brown's insurance brokerage margins can support higher intrinsic value, while any pressure on cash flow quality or acquisition returns may weigh on how much investors are willing to pay. The broader valuation checks are mixed rather than decisive, with Brown & Brown passing 3 of 6 tests, which you can review in detail at 3 of 6 valuation checks. The issue now is whether Brown & Brown's current US$73.34 share price already reflects its long term cash generation or if the intrinsic value estimate still leaves a meaningful margin of safety for new capital. Find out why Brown & Brown's -22.9% return over the last year is lagging behind its peers. The Excess Returns model evaluates how efficiently Brown & Brown uses its equity base to generate profits above the required cost of capital. For Brown & Brown, the key inputs indicate a business generating returns that exceed what shareholders are assumed to require. Book Value is $38.13 per share and Stable EPS is $6.53 per share, based on the median return on equity from the past 5 years. Against a Cost of Equity of $3.04 per share, the model estimates an Excess Return of $3.50 per share, with an Average Return on Equity of 15.57%. That return profile is combined with a Stable Book Value of $41.95 per share, sourced from weighted future book value estimates from 2 analysts, to arrive at an intrinsic value estimate of $140.82 per share. Compared with the current share price of $73.34, the Excess Returns valuation suggests that Brown & Brown is trading at a 47.9% discount to its estimated intrinsic value. On this model, Brown & Brown stock appears undervalued relative to its estimated intrinsic value. Our Excess Returns analysis suggests Brown & Brown is undervalued by 47.9%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Brown & Brown. P/E suits Brown & Brown because earnings remain a key anchor for how investors typically value established insurance brokers. On this measure, Brown & Brown trades on a P/E of 20.6x, which is higher than the Insurance industry average of 11.2x and also above a peer group average of 34.5x. The peer figure reflects other companies whose earnings profiles influence how investors think about the sector as a whole. The tailored fair P/E ratio for Brown & Brown is 13.4x, based on its specific mix of growth assumptions, margins, size and risk inputs. The current 20.6x multiple sits well above this fair ratio, which indicates that investors are paying a premium price for each dollar of earnings compared with what this framework would suggest. This contrasts with the Excess Returns valuation, which points to potential upside on intrinsic value even though the earnings multiple screens the stock as expensive. On the P/E multiple alone, Brown & Brown stock currently screens as overvalued relative to the fair ratio implied by its fundamentals. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Brown & Brown pick up where this valuation puzzle leaves off by spelling out the specific paths for Brown & Brown's growth, margins and earnings that would make the stock worth materially more or less than today's price. Instead of giving a single figure, these scenarios show the future that each ratio or model relies on so you can monitor whether those assumptions continue to hold. They are available on Simply Wall St's Community page for Brown & Brown. You can add your voice to the Brown & Brown story by publishing a Narrative that lays out your number driven view on where its growth, margins and execution go from here. Share your case in the Simply Wall St community and see how it stacks up as new results and information emerge over time. Do you think there's more to the story for Brown & Brown? Head over to our Community to see what others are saying! Brown & Brown offers a split message. The intrinsic value estimate from the Excess Returns work suggests the stock is undervalued, while the earnings multiple points to an overvalued position on current pricing. That mismatch comes from a model that leans on long term cash generation and returns on equity, against a market that is focused on what investors are willing to pay for each dollar of earnings today. The key question from here is whether Brown & Brown can keep converting its equity base into strong, repeatable cash flows that justify both the intrinsic value case and the current premium P/E. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BRO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Looking back on insurance brokers stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Brown & Brown (NYSE:BRO) and its peers. The insurance brokerage industry, while influenced by insurance pricing cycles, benefits from durable secular tailwinds as rising risk complexity (climate, data privacy), regulatory scrutiny, and insurance pricing inflation. These increase demand for professional risk-management advice. Brokers operate models that rely on commissions and fees tied to premium volumes and growing contributions from recurring advisory, benefits, and compliance services. Scale is a key advantage, enabling better carrier access, stronger data and benchmarking, and efficient deployment of technology and compliance investments, which in turn supports ongoing industry consolidation. The headwinds are labor intensity and wage inflation for producers, regulatory complexity (this cuts both ways, as you can see), and execution risk when integrating new digital tools into legacy workflows. The 5 insurance brokers stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 0.8%. In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results. With roots dating back to 1939 and operations spanning 44 U.S. states and 14 countries, Brown & Brown (NYSE:BRO) is an insurance brokerage and risk management firm that markets and sells insurance products across property, casualty, and employee benefits sectors. Brown & Brown reported revenues of $1.68 billion, up 30.4% year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a softer quarter for the company with EPS in line with analysts’ estimates. Brown & Brown scored the fastest revenue growth but had the weakest performance against analyst estimates among its peers. Unsurprisingly, the stock is up 2.7% since reporting and currently trades at $71.60. Is now the time to buy Brown & Brown? Access our full analysis of the earnings results here, it’s free. Founded in 2010 by insurance industry veteran Patrick Ryan, Ryan Specialty (NYSE:RYAN) is a wholesale insurance broker and underwriting manager that helps retail brokers place complex or hard-to-place risks with insurance carriers. Ryan Specialty reported revenues of $916.6 million, up 7.2% year on year, outperforming analysts’ expectations by 5.3%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Ryan Specialty scored the biggest analyst estimate beat of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.5% since reporting. It currently trades at $42.13. Is now the time to buy Ryan Specialty? Access our full analysis of the earnings results here, it’s free. Founded in 1927 and operating in approximately 130 countries through direct operations and correspondent networks, Arthur J. Gallagher (NYSE:AJG) provides insurance brokerage, reinsurance, consulting, and third-party claims settlement services to businesses and individuals worldwide. Arthur J. Gallagher reported revenues of $4.00 billion, up 24.3% year on year, falling short of analysts’ expectations by 0.5%. It was a mixed quarter as it posted a narrow beat of analysts’ EPS estimates. The stock is flat since the results and currently trades at $254.50. Read our full analysis of Arthur J. Gallagher’s results here. With roots dating back to 1871 and a presence in over 130 countries, Marsh (NYSE:MRSH) is a global professional services firm that helps organizations manage risk, strategy, and workforce challenges through its four specialized businesses. Marsh reported revenues of $7.40 billion, up 6.2% year on year. This print beat analysts’ expectations by 1.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates. Marsh had the slowest revenue growth in the group. The stock is up 5% since reporting and currently trades at $191.27. Read our full, actionable report on Marsh here, it’s free. Rebranded from BRP Group in May 2024, Baldwin Insurance Group (NASDAQ:BWIN) is an independent insurance distribution company that provides tailored insurance, risk management, and employee benefits solutions to businesses and individuals. Baldwin Insurance Group reported revenues of $492.9 million, up 30.1% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded EPS in line with analysts’ estimates but a miss of analysts’ organic revenue estimates. The stock is up 8% since reporting and currently trades at $28.83. Read our full, actionable report on Baldwin Insurance Group here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Brown & Brown’s second quarter results for 2026 fell short of market revenue expectations, but sales still rose 30.4% year on year to $1.68 billion. Management attributed performance to strong contingent commissions, effective integration of acquisitions, and ongoing enhancements to its sales and underwriting processes. CEO J. Powell Brown emphasized, “Our enhanced go-to-market sales model is building momentum with newly aligned teams collaborating, developing opportunities, and generating incremental new business wins.” The company also noted progress in controlling expenses, even as operating margin declined year-over-year, and highlighted solid cash flow generation and share repurchases as additional contributors to the quarter’s outcomes. Is now the time to buy BRO? Find out in our full research report (it’s free). Revenue: $1.68 billion vs analyst estimates of $1.72 billion (30.4% year-on-year growth, 2.5% miss) Adjusted EPS: $1.07 vs analyst estimates of $1.07 (in line) Adjusted EBITDA: $611 million vs analyst estimates of $603.1 million (36.5% margin, 1.3% beat) Operating Margin: 22.9%, down from 24.2% in the same quarter last year Market Capitalization: $23.56 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Zaremski (BMO Capital Markets) asked about the timing and sustainability of Accession’s revenue and margin contributions. CFO R. Watts clarified that revenue seasonality is expected and margins should remain stable, with earnout-related cash flow impacts being one-time in nature. Charles Peters (Raymond James) questioned the impact of increased competition from managing general agents (MGAs) on specialty distribution growth. CEO J. Powell Brown acknowledged pricing pressure but stressed disciplined underwriting and a broader, more balanced risk portfolio. Elyse Greenspan (Wells Fargo) asked about hiring activity and its impact on organic growth. Brown explained that ongoing hiring is part of standard operations and that any substantial investments in new talent would be explicitly disclosed. Robert Cox (Goldman Sachs) inquired about margin guidance and the absorption of AI-related costs. Watts reiterated that technology investments are being offset by cost reallocation, and synergy targets remain unchanged, with no current plans for additional tech spending. Taylor Scott (Barclays) asked about expansion efforts in Europe. Brown detailed investments in hiring and capabilities for wholesale and programs businesses, citing London as a focus area for future organic growth. In the coming quarters, the StockStory team will be monitoring (1) the pace and impact of AI adoption across sales and underwriting workflows, (2) realization of cost synergies and integration benefits from the Accession acquisition, and (3) trends in contingent commissions and organic growth as insurance market competition intensifies. The effectiveness of capital allocation between share repurchases, technology investment, and future M&A will also be important for long-term performance. Brown & Brown currently trades at $70.40, up from $69.70 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Brown & Brown (BRO) drew fresh investor attention after reporting second quarter 2026 results, with revenue of US$1.676b and net income of US$288m, alongside updated buyback and dividend activity. See our latest analysis for Brown & Brown. Despite the latest share price of US$70.40 and a 22.16% 90 day share price return that hints at improving momentum, Brown & Brown's year to date share price return is down 9.30% and its 1 year total shareholder return is down 23.00%. This contrasts with the modestly positive 3 year and 5 year total shareholder returns of 2.72% and 33.83%. If Brown & Brown's recent results have you reassessing your watchlist, this can be a good moment to broaden your search and check out 18 top founder-led companies The recent swing in Brown & Brown's share price sits against a wide range of value estimates, from intrinsic models to analyst targets. With the stock still below those reference points, how wide is the gap to fair value now? Brown & Brown's most followed valuation narrative points to a fair value of $75.63, which sits above the latest close at $70.40 and frames the recent pullback against a modest valuation gap. Read the complete narrative. The fair value story for Brown & Brown rests on a specific mix of projected revenue growth, shifts in profit margins, and a richer future earnings multiple. If you are curious which assumptions really carry the weight, the full narrative spells out the numbers behind that earnings path and the valuation gap. Result: Fair Value of $75.63 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Brown & Brown's story still carries pressure points, including rising pharmacy costs in benefits and potential legislative shifts in Florida that could squeeze margins and weaken this valuation case. Find out about the key risks to this Brown & Brown narrative. The earlier fair value narrative for Brown & Brown leaned on long term earnings forecasts and price targets. The P/E picture tells a less forgiving story. At 19.8x earnings, Brown & Brown trades well above the US Insurance industry at 12.1x and also above its own fair ratio of 12.5x, which points to valuation risk if sentiment cools. For investors weighing these mixed signals, the key question is which set of assumptions feels more realistic for the next few years: the upside case from earnings models, or the warning coming from today’s richer multiple, and how much room that leaves for error. See what the numbers say about this price — find out in our valuation breakdown. Seeing mixed takeaways in Brown & Brown's story so far is understandable, so use the data, valuation work, and sentiment signals to pressure test your own view, then round it out by checking 3 key rewards and 2 important warning signs If Brown & Brown's latest update has sharpened your focus, do not stop here. Use this momentum to hunt for other opportunities before they move out of reach. Spot potential bargains by scanning companies that look mispriced on quality and value using the 55 high quality undervalued stocks. Build a steadier income stream by reviewing companies in the 9 dividend fortresses that combine payout strength with resilience. Reduce portfolio shocks by focusing on businesses screened in the 81 resilient stocks with low risk scores that show lower risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BRO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Arthur J. Gallagher & Co. AJG reported second-quarter 2026 adjusted earnings of $2.84 per share, in line with the Zacks Consensus Estimate. The bottom line increased 23.5% year over year.Revenues before reimbursements of $3.95 billion missed the consensus estimate by 2%. Still, the top line rose 24.4% year over year, supported by acquired revenues and solid organic growth. Combined Brokerage and Risk Management organic revenues increased 6%. Arthur J. Gallagher & Co. price-consensus-eps-surprise-chart | Arthur J. Gallagher & Co. Quote Commissions climbed 35.1% year over year to $2.44 billion, while fees advanced 23% to $1.18 billion. Supplemental revenues increased 36.9% to $141 million, and contingent revenues improved 24.7% to $91 million.These gains were partly offset by a 57.9% decline in interest income, premium finance revenues and other income to $98 million. The prior-year quarter benefited from interest earned on cash raised for the AssuredPartners acquisition. Brokerage revenues rose 25.7% year over year to $3.50 billion. Organic commissions, fees, supplemental revenues and contingent revenues increased 5%, reflecting 4% growth in organic base commissions and fees and a 20% increase in organic supplemental revenues.Organic contingent revenues declined 8%. During the quarter, the segment completed six acquisitions with estimated annualized revenues of $58 million compared with nine acquisitions and $291 million of annualized revenues acquired a year earlier. Adjusted Brokerage EBITDAC increased 15.7% to $1.16 billion. EBITDAC represents earnings before interest, taxes, depreciation, amortization and changes in estimated acquisition earnout payables.The adjusted EBITDAC margin contracted 280 basis points to 33.3%. The comparison was pressured by lower interest income, AssuredPartners seasonality and the inclusion of acquired businesses. Risk Management revenues before reimbursements increased 15.6% year over year to $453 million. Reported fees rose to $445 million from $383 million, while organic fees advanced 12%.The segment completed one acquisition with estimated annualized revenues of $5 million. In the year-ago period, Risk Management did not close an acquisition. Adjusted EBITDAC improved 21.7% to $101 million. The adjusted margin expanded 140 basis points to 22.3%, benefiting from stronger fee growth and lower compensation and operating expense ratios.The adjusted compensation expense ratio declined 160 basis points to 59.6%, helped by headcount controls. The adjusted operating expense ratio edged down 10 basis points to 18.1%, aided by savings in client-related expenses. Total expenses increased 30.6% year over year to $3.59 billion. Compensation expenses rose 29.2% to $2.33 billion, while operating expenses increased 30.8% to $679 million.Amortization surged 67.2% to $301 million, reflecting the impact of acquired intangible assets. Interest expense increased 6.3% to $168 million. Reported net earnings fell 12% to $324 million, while diluted GAAP earnings declined to $1.25 per share from $1.40. Total-company EBITDAC nevertheless increased 10.5% to $946 million.The effective tax rate declined to 21.7% from 22.3%. Corporate EBITDAC improved to a negative $98 million from a negative $111 million in the prior-year quarter. Arthur J. Gallagher ended the quarter with total assets of $81.81 billion, up 15.8% from year-end 2025. Cash and cash equivalents were $1.39 billion, while total stockholders’ equity increased 1.7% to $23.75 billion.Corporate-related borrowings totaled $13.48 billion, including $1.52 billion classified as current. Gallagher also had $134 million of premium financing debt. During the quarter, AJG repurchased shares for around $170 million. The company declared dividends of 70 cents per share, up from 65 cents in the year-ago quarter.Management highlighted strong client retention, new business generation and continued demand for advice, analytics, specialty expertise and claims advocacy amid a complex risk environment. Arthur J. Gallagher currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Brown & Brown, Inc.’s BRO second-quarter 2026 adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line increased 3.9% year over year. Revenues of $1.67 billion missed the consensus mark by 2.9% but increased 30.4% year over year. Acquisition activity supported the top line, while organic revenues declined 0.7%. Commissions and fees rose 32.4% to $1.65 billion, while investment and other income declined to $22 million from $36 million. Adjusted EBITDAC margin contracted 100 basis points to 35.7%. Adjusted net income attributable to the company increased 18.4% to $361 million. Willis Towers Watson Public Limited Company WTW reported second-quarter 2026 adjusted earnings of $3.35 per share, beating the Zacks Consensus Estimate of $3.13 by 7%. Earnings increased 17% year over year. Revenues rose 9% to $2.46 billion and surpassed the consensus estimate of $2.42 billion by 1.7%. Organic revenues grew 5%. Reported revenues increased from $2.26 billion in the prior-year quarter. Excluding foreign-currency movements, revenues advanced 8%. Acquisitions and divestitures contributed 3 percentage points to the quarterly change. Adjusted EBITDA increased 13% year over year to $529 million. The related margin widened 70 basis points to 21.5%, reflecting improved operating leverage and stronger adjusted profitability.Aon plc AON reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year.Total revenues of $4.2 billion grew 2% year over year.  The top line missed the consensus mark by 0.4%. Organic revenue growth was 5%. Total operating expenses inched up 1% year over year to $3.3 billion. Adjusted operating income amounted to $1.2 billion, up 5% year over year and in line with our estimate. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report Aon plc (AON) : Free Stock Analysis Report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Willis Towers Watson Public Limited Company WTW reported second-quarter 2026 adjusted earnings of $3.35 per share, beating the Zacks Consensus Estimate of $3.13 by 7%. Earnings increased 17% year over year.Revenues rose 9% to $2.46 billion and surpassed the consensus estimate of $2.42 billion by 1.7%. Organic revenues grew 5%, supported by gains across both operating segments. Adjusted operating margin expanded despite higher transaction and integration costs. Willis Towers Watson Public Limited Company price-consensus-eps-surprise-chart | Willis Towers Watson Public Limited Company Quote Reported revenues increased from $2.26 billion in the prior-year quarter. Excluding foreign-currency movements, revenues advanced 8%. Acquisitions and divestitures contributed 3 percentage points to the quarterly change.Adjusted EBITDA increased 13% year over year to $529 million. The related margin widened 70 basis points to 21.5%, reflecting improved operating leverage and stronger adjusted profitability.The total costs of providing services increased 11% year over year to $2.1 billion due to higher salaries and benefits, other operating expenses, and amortization and transaction and integration expenses. Our estimate was pegged at $2 billion. Health, Wealth & Career revenues increased 8% year over year to $1.27 billion. Our estimate was pegged at $1.26 billion. Revenues rose 7% on a constant-currency basis and 4% organically. Health generated organic growth across all regions, while Wealth benefited from higher retirement-related activity.Career revenues were unchanged organically. Higher communications project and compensation work was offset by pressure in the Middle East. Benefits Delivery & Outsourcing gained from project activity, new client wins and regulatory work, partly offset by lower Individual Marketplace commissions.The segment’s operating income rose 9% year over year to $306 million. Operating margin expanded 30 basis points to 24.1%, driven by expense discipline and improved operating leverage. Risk & Broking revenues advanced 11% to $1.16 billion. Our estimate was pegged at $1.12 billion. Constant-currency revenues increased 10%, while organic growth reached 7%, the stronger rate among WTW’s two operating segments.Corporate Risk & Broking benefited from new business activity and strong client retention worldwide. Insurance Consulting and Technology recorded organic growth, primarily reflecting robust software sales in its Technology practice.Segment operating income climbed 16% year over year to $258 million. Operating margin improved 100 basis points to 22.2% on operating leverage. Adjusted operating income increased 15% year over year to $480 million. Adjusted operating margin expanded 100 basis points to 19.5%, indicating that underlying profit growth outpaced the increase in revenues.On a reported basis, income from operations declined 1% year over year to $364 million. Operating margin contracted 150 basis points to 14.8%, partly reflecting transaction and integration expenses of $61 million compared with $2 million a year earlier.Net income fell 30% year over year to $231 million, while diluted GAAP earnings decreased 27% to $2.43 per share. The divergence from adjusted results reflected acquisition-related and other excluded items. Operating cash flow totaled $474 million during the first six months of 2026, up 45.4% from the prior-year period. Free cash flow increased 65.9% year over year to $360 million, primarily due to operating margin expansion.WTW repurchased about 1.7 million shares for $450 million during the second quarter. The board also increased the company’s existing share-repurchase authorization by $1.5 billion, supplementing approximately $500 million remaining under the prior authority.Cash and cash equivalents were $1.63 billion as of June 30, 2026, down 48.1% from the end of 2025. Long-term debt stood at $5.78 billion and grew 0.4% from year-end. WTW introduced Propel, an enterprise-wide plan designed to expand the use of artificial intelligence and automation through 2028. The initiative is intended to improve client service, support growth opportunities and streamline core processes.The company expects to invest about $625 million in cash and incur $25 million of non-cash charges. Propel is targeted to generate roughly $400 million in run-rate savings. After reinvesting $50 million to support growth, WTW expects approximately $350 million in net run-rate savings.Management is targeting an adjusted operating margin of approximately 30% in 2028. The company maintained its full-year 2026 financial considerations, including continued enterprise-level margin expansion and share repurchases of at least $1 billion, subject to market conditions. WTW expects continued adjusted operating margin expansion at the enterprise level. Willis Towers expects Health, Wealth & Career organic revenues to be in the mid-single digits.WTW expects Risk & Broking organic revenues to be in the mid-single digits.In terms of the Newfront acquisition, WTW expects 2026 post-close revenue of $250 million and an adjusted EBITDA margin of 26%.WTW expects Newfront’s Total Rewards business segment (42%) will be included in HWC and Newfront’s Business Insurance business segment (58%) will be included in R&B.WTW expects share repurchases of $1 billion or greater, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities.WTW expects continual improvement in free cash flow margin primarily from operating margin expansion along with an evolving business mix. Willis Towers Watson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Brown & Brown, Inc.’s BRO second-quarter 2026 adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line increased 3.9% year over year. Revenues of $1.67 billion missed the consensus mark by 2.9% but increased 30.4% year over year. Acquisition activity supported the top line, while organic revenues declined 0.7%. Commissions and fees rose 32.4% to $1.65 billion, while investment and other income declined to $22 million from $36 million. Adjusted EBITDAC margin contracted 100 basis points to 35.7%. Adjusted net income attributable to the company increased 18.4% to $361 million. Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Strong underwriting income from its core businesses supported the earnings beat. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Gross written premiums declined 19.4% year over year to $3.77 billion. Our estimate was $3.8 billion. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion. Total claims and expenses fell 10.8% to $3.28 billion. Our estimate was $3.4 billion. Arch Capital Group Ltd. ACGL reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. Revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. Gross premiums written declined 1.1% year over year to $6.13 billion. Net premiums written decreased 6.9% to $4.05 billion, reflecting lower volumes in the Insurance and Reinsurance segments. Net premiums earned fell 8.1% to $3.99 billion. Underwriting income fell 19.7% to $657 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Arch Capital Group Ltd. ACGL reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year.Revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. Results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income. Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote Gross premiums written declined 1.1% year over year to $6.13 billion. Net premiums written decreased 6.9% to $4.05 billion, reflecting lower volumes in the Insurance and Reinsurance segments. Net premiums earned fell 8.1% to $3.99 billion. Underwriting income fell 19.7% to $657 million. The combined ratio, which measures claims and expenses as a percentage of premiums, deteriorated 230 basis points to 83.5%. Catastrophe losses totaled $201 million, while favorable prior-year reserve development was $165 million. Insurance gross premiums written declined 2.9% year over year to $2.60 billion. The figure was lower than our estimate of $2.7 billion. Net premiums written fell 5.1% to $1.93 billion. The figure was lower than our estimate of $1.95 billion. Underwriting income plunged 79.1% to $27 million. The figure was lower than our estimate of $70.2 million. The combined ratio worsened by 510 basis points to 98.5%. The combined ratio excluding catastrophe activity and prior-year development was 91.6%, up 100 basis points. Reinsurance gross premiums written inched up 0.2% to $3.20 billion. The figure was lower than our estimate of $3.06 billion. Net premiums written dropped 10.4% to $1.84 billion, partly due to non-renewals, reduced participations and targeted increases in retrocessions. The figure was lower than our estimate of $2 billion.Underwriting income decreased 9.1% to $410 million. The figure was higher than our estimate of $384.2 million. However, the combined ratio improved 100 basis points to 77.5%. The underlying combined ratio increased 270 basis points to 79.9%. Mortgage gross premiums written rose 0.3% year over year to $324 million, while net premiums written increased 7.5% to $272 million. Growth in international business offset lower U.S. monthly premium volume. The figure for gross premiums written was higher than our estimate of $314.9 million, while that for net premiums written was higher than our estimate of $247.6 million.Underwriting income declined 7.6% to $220 million. The figure was lower than our estimate of $226.7 million. The combined ratio deteriorated 760 basis points to 22.8%. Excluding prior year development, the combined ratio was 39.8% compared with 39.3% a year earlier. Pre-tax net investment income increased 3% year over year to $417 million, supported by growth in average invested assets and strong operating cash flows. The figure was higher than our estimate of $420.9 million. Equity in net income from investments accounted for under the equity method rose to $196 million from $162 million.Arch Capital ended the quarter with $1.11 billion in cash and $4.29 billion in senior notes. Book value per share rose 2.8% sequentially to $68.04. Net cash provided by operating activities increased 17.6% year over year to $1.32 billion. Net income available to common shareholders was $1.05 billion, or $3 per share, compared with $1.23 billion, or $3.23 per share, in the year-ago quarter. Annualized net income return on average common equity was 18%, which contracted 490 basis points year over year, while annualized operating return was 15.3%, which contracted 290 basis points year over year.The company completed a $2 billion senior notes offering in June and used part of the proceeds for debt refinancing and tender offers. Interest expense increased to $44 million from $38 million. Arch Capital also repurchased $1.2 billion of shares during the quarter, contributing to an 8.2% year-over-year decline in diluted weighted-average shares. Arch Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%.Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8%. Total benefits and expenses increased 12.8% year over year to $2.7 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Brown & Brown, Inc.? Here are five stocks we like better. Strong revenue growth: Brown & Brown’s second-quarter revenue rose 30.4% to $1.7 billion, driven largely by acquisitions and higher contingent commissions. Adjusted EPS increased 3.9% to $1.07, while the adjusted EBITDAC margin declined 100 basis points to 35.7%. Organic performance was mixed: Organic revenue fell 0.7% excluding contingent commissions, with Retail growing 1.5% and Specialty Distribution declining 3.5%. Management expects second-half organic growth of 1.5%–2.5% in Retail and 2%–4% in Specialty Distribution, excluding contingents. Pricing pressure and AI investments shape the outlook: Catastrophe-property insurance rates continued to fall 15%–35%, while casualty and professional liability pricing remained firmer. The company is partnering with Anthropic, McKinsey and Accenture on AI initiatives aimed at improving productivity and margins without materially increasing technology spending. Starbucks Builds Sovereign AI to Cut $400 Million in Software Costs Brown & Brown (NYSE:BRO) reported second-quarter revenue of $1.7 billion, up 30.4% from a year earlier, as acquisition activity and higher contingent commissions helped offset pressure from declining catastrophe-property insurance rates. Chief Executive Officer Powell Brown said the company’s results came in modestly ahead of its expectations despite continued declines in catastrophe-property pricing. Adjusted diluted earnings per share increased 3.9% to $1.07, while adjusted EBITDAC rose 27%. The company’s adjusted EBITDAC margin declined 100 basis points year over year to 35.7%. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Dutch Bros Q1 Earnings: The Newest Starbucks Rival Faces Its First Big Reality Check “We’re pleased with our financial performance for the quarter,” Brown said, pointing to the work of the company’s employees in providing risk-management solutions to customers. Organic revenue declined 0.7% from the prior-year period, but increased 0.7% when contingent commissions were included. Brown said the company began providing both measures because contingent commissions can fluctuate by quarter and because many peers do not separately disclose them. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 2026 Food Inflation Outlook: This ETF Could Outperform In the Retail segment, organic revenue grew 2.5% including contingent commissions and 1.5% excluding them. Brown said net new business was better than expected and contingent commissions were particularly strong, although he added that Retail’s organic growth “is not where we want it to be yet.” The company is working to combine two large organizations and said its enhanced go-to-market sales model is gaining momentum as teams collaborate on new business opportunities. CFO Andy Watts said Retail’s total revenue increased 35.9%, primarily due to acquisitions completed over the past year. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Retail’s organic growth was negatively affected by approximately 60 basis points from a pharmacy consulting business, according to Watts. The company also recorded an $18 million current-period adjustment to organic revenue related to litigation involving employees who left to join a startup broker. Brown & Brown expects the full-year revenue impact from new and lost business and incentive commissions associated with the matter to be between $50 million and $60 million. Specialty Distribution organic revenue declined 1.6% including contingent commissions and 3.5% excluding them. Those measures were reduced by nearly 200 basis points because about $10 million of new-business revenue from one program was delayed and is expected to be recorded substantially in the third quarter, Brown said. Specialty Distribution total revenue rose 28.1%, aided by the acquisition of Accession and increased contingent commissions. The segment’s EBITDAC margin fell 400 basis points to 42.7%, reflecting lower organic growth and investments in European wholesale and programs capabilities. Brown & Brown recognized about $410 million in quarterly revenue from Accession, with margins in line with expectations, Watts said. He said the acquired business is expected to operate at roughly a 35% margin overall and should not materially add to or subtract from the company’s consolidated margin, though it lowers Specialty Distribution’s reported margin because legacy programs and wholesale operations had higher margins. The company also disposed of a non-core Retail business with annual revenue of approximately $30 million to $35 million. Cash flow from operations totaled approximately $610 million during the first six months of 2026, up $70 million, or 13%, from the prior-year period. Cash-flow conversion was affected by nonrecurring Accession-related items, including higher-than-anticipated final earn-out payments, as well as the timing of working capital. Watts said the earn-out effect was a one-time item and that the company still expects long-term cash-flow conversion of roughly 24% to 27%. Over the past nine months, Brown & Brown repurchased approximately nine million shares, partially offsetting shares issued in connection with the Accession acquisition. The company said it will continue to prioritize hiring, share repurchases, debt reduction, technology investments and selective acquisitions that add specialized capabilities rather than simply scale. Brown said commercial insurance pricing trends were broadly similar to the first quarter. Workers’ compensation and non-catastrophe property rates were generally flat to down 5%, while primary casualty and professional liability rates were generally up 5%. Excess casualty layers faced more pricing pressure. Catastrophe-property rates continued to decline by 15% to 35%, driven by ample underwriting capital and supply exceeding demand. Brown said some customers are retaining the savings while others are using lower prices to modify coverage structures, limits or deductibles. For employee benefits, medical costs remained up 8% to 10%, while pharmacy costs increased more than 10%. Brown said those cost trends are supporting demand for the company’s advisory and consulting services. For the second half, Brown & Brown expects Retail organic growth excluding contingents of 1.5% to 2.5% and Specialty Distribution organic growth excluding contingents of 2% to 4%. The company said it has entered partnerships with Anthropic, McKinsey & Company and Accenture to advance its artificial intelligence strategy. Brown said Brown & Brown views AI as an enabler for employees rather than a replacement for risk advisers, brokers or delegated underwriters. The company is targeting improvements in sales, service, underwriting, placement, submissions and support functions. Brown said it expects AI, data and analytics to support faster cycle times, higher productivity, stronger organic growth and margin expansion over time. Management does not currently expect incremental technology spending, saying it can redirect resources from existing operations toward data analytics, innovation and AI. Watts said the company will monitor implementation pace and the organization’s ability to absorb change, and would communicate any material changes in spending expectations. Brown & Brown reaffirmed its expectation to generate $30 million to $40 million in integration synergies this year and said it expects insurance-market and economic conditions in the second half to remain generally consistent with recent quarters. Brown & Brown, Inc (NYSE: BRO) is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets. Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Brown & Brown Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: $1.7 billion, growing 30.4% year-over-year. Organic Revenue Growth: Decreased 70 basis points; increased 70 basis points including contingents. Adjusted EBITDAC Margin: Decreased 100 basis points to 35.7%. Adjusted Earnings Per Share: Grew nearly 4% to $1.07. Cash Flow from Operations: Approximately $610 million, increasing 13% compared to the first half of 2025. Share Repurchases: $500 million deployed to repurchase approximately $8 billion of shares. Retail Segment Revenue Growth: 35.9%, driven by acquisition activity and organic growth including contingents of 2.5%. Specialty Distribution Revenue Growth: 28.1%, driven by acquisition and increased contingent commissions. Dividends Paid Per Share: Increased by 10% compared to the second quarter of 2025. Acquisitions: Acquired six small agencies during the quarter. Warning! GuruFocus has detected 4 Warning Signs with BRO. Is BRO fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Brown & Brown Inc (NYSE:BRO) reported a 30.4% increase in total revenues for the second quarter, reaching $1.7 billion. The company achieved a 4% growth in adjusted earnings per share, reaching $1.07. Brown & Brown Inc (NYSE:BRO) continues to focus on strategic acquisitions, having acquired six small agencies during the quarter. The company is leveraging partnerships with McKinsey, Accenture, and Anthropic to enhance its AI capabilities, aiming to improve customer outcomes and operational efficiency. Strong cash flow generation was reported, with approximately $610 million generated from operations, marking a 13% increase compared to the first half of 2025. Organic revenue decreased by 70 basis points from the prior year, although it increased by 70 basis points when including organic contingents. The adjusted EBITDAC margin decreased by 100 basis points to 35.7%, primarily due to lower interest income. Specialty distribution segment experienced a negative organic revenue growth of 1.6% with contingents and 3.5% without, impacted by delayed new business revenue. The company faced challenges in the competitive insurance market, with continued pressure from declining CAT property rates. Litigation impacts associated with individuals leaving for a startup broker resulted in a revenue adjustment of $18 million for the quarter. Q: On the accession integration, revenues seemed light compared to expectations. Is there a timing issue with revenues, and how should we think about the margin bridge with accession's impact? A: R. Andrew Watts, CFO, explained that revenues are relatively balanced across quarters, with July being significant for placements. The business runs around a 35% margin, aligning with expectations, and won't significantly impact Brown & Brown's overall margins. Q: Can you provide an update on the hiring activity and its impact on organic growth for the back half of the year? A: J. Powell Brown, CEO, emphasized that hiring talented people is a continuous strategy, not a new initiative. The focus remains on organic growth, and while they are committed to hiring, significant investments in new talent would be highlighted separately. Q: How do you view the current competition in the ENS space and its impact on your program business? A: J. Powell Brown acknowledged increased competition from admitted markets and programs in the ENS space. Despite this, they remain disciplined in underwriting and expect programs to grow organically by 2% to 4% in the second half of the year. Q: Regarding the impact of technology and AI, how do you foresee these investments affecting margins and growth in the future? A: J. Powell Brown stated that AI and technology investments are expected to drive incremental organic growth and margin expansion over time. The benefits of AI will be more evident in years three to five, with a focus on better customer outcomes and enabling teammates. Q: Can you elaborate on the investments being made in Europe and their expected contribution to growth? A: J. Powell Brown mentioned that investments in Europe focus on wholesale and programs businesses, hiring new talent with specialized capabilities to drive organic growth. They see ongoing opportunities in London for both wholesale and programs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Brown & Brown, Inc.’s BRO second-quarter 2026 adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line increased 3.9% year over year.Revenues of $1.67 billion missed the consensus mark by 2.9% but increased 30.4% year over year. Acquisition activity supported the top line, while organic revenues declined 0.7%. Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote Commissions and fees rose 32.4% to $1.65 billion, while investment and other income declined to $22 million from $36 million.Adjusted EBITDAC margin contracted 100 basis points to 35.7%.Adjusted net income attributable to the company increased 18.4% to $361 million. However, a 14% increase in the diluted weighted-average share count limited per-share growth. GAAP net income rose 24.7% to $288 million, while diluted GAAP earnings increased 7.7% to 84 cents. Organic revenues decreased 0.7% to $1.18 billion. Organic revenues with contingent commissions increased 0.7% to $1.24 billion, supported by higher profit-sharing commissions from insurance carriers.Core commissions and fees increased 30.3% year over year to $1.57 billion. Investment income and other income decreased 39% year over year to $22 million. Retail revenues increased 35.9% year over year to $947 million, primarily due to acquisition activity. Organic revenues advanced 1.5% to $678 million, while organic revenues with contingents increased 2.5% to $692 million.Net new business and exposure-unit expansion supported organic growth. These gains were partially offset by declines in catastrophe property rates and lower revenues from a specialty pharmacy business. Adjusted EBITDAC climbed 46.9% to $282 million, and the margin expanded 230 basis points to 29.8%. Specialty Distribution revenues increased 28.1% to $721 million, aided by acquisitions and higher contingent commissions. Organic revenues, however, declined 3.5% to $498 million, while organic revenues with contingents fell 1.6% to $545 million.Declining catastrophe property rates and approximately $10 million of new-business timing pressure weighed on the segment. Adjusted EBITDAC rose 17.1% to $308 million, but the adjusted margin contracted 400 basis points to 42.7% amid weaker organic revenues and investments in European capabilities. Total expenses increased 32.8% year over year to $1.29 billion. Employee compensation and benefits rose 31% to $838 million, while other operating expenses increased 28.4% to $271 million. Amortization more than doubled to $110 million, and interest expense increased 96% to $100 million. Adjusted EBITDAC rose 27% to $598 million, but growth trailed the top-line increase, resulting in margin contraction. Adjusted income before taxes increased 17.4% to $480 million. Net cash provided by operating activities increased 13% to $608 million during the first six months of 2026. Cash and cash equivalents were $918 million as of June 30, down from $1.08 billion at the end of 2025.The company repurchased $250 million of stock during the second quarter. Brown & Brown also paid $112 million in dividends and declared a quarterly dividend of 16.5 cents per share, up 10% year over year. Management expects rate changes across most admitted insurance lines in the second half of 2026 to remain relatively similar to second-quarter levels. Casualty and auto rates continued to increase, while property and workers’ compensation pricing was flat to lower.Excess-and-surplus casualty rates are expected to keep rising because of the legal environment. Brown & Brown does not expect catastrophe property rates to change materially in the second half compared with the first. Capital deployment will focus on share repurchases; internal investment, debt reduction and acquisitions centered on specialty businesses. 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. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.Chubb Limited CB reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report Chubb Limited (CB) : Free Stock Analysis Report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research