(Reuters) – Brown & Brown on Monday reported a near 9% rise in third-quarter profit as the insurance brokerage earned more commissions and fees, sending its shares up 1% in extended trading.
Demand for insurance products has remained resilient against an uncertain economy and the sector is typically considered recession-proof, as many policies are often guaranteed by employers while some are mandated by the government.
Insurance brokerages like Brown & Brown serve as a bridge between an insurer and customers, helping its clients find a policy which best suits their needs.
The company’s commissions and fees increased 13.4% in the quarter to about $1.05 billion.
It is the fifth largest independent insurance brokerage in the U.S. specializing in risk management, and operates through four business segments – retail, national programs, wholesale brokerage, and services.
The company said total revenues climbed 15.1% in the third quarter to about $1.07 billion.
Brown & Brown posted net income of 62 cents per diluted share for the three months ended Sept. 30, compared with 57 cents a year earlier.
(Reporting by Manya Saini in Bengaluru; Editing by Devika Syamnath)
