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Brown & Brown, Inc. Announces Company Record Fourth-Quarter Earnings of $47.2 Million and 2013 Net Income Growth of 18.0%

DAYTONA BEACH, FL and TAMPA, FL -- (Marketwired) -- 02/03/14 -- Brown & Brown, Inc. (NYSE: BRO) today announced its preliminary, unaudited financial results for the fourth quarter of 2013.

Net income for the fourth quarter of 2013 was $47,225,000, or $0.32 per share, compared with $42,637,000, or $0.29 per share for the same quarter of 2012, an increase of 10.8%. Total revenue for the fourth quarter was $343,165,000, compared with 2012 fourth-quarter revenue of $302,830,000, an increase of 13.3%.

Total revenue for the twelve months ended December 31, 2013 was $1,363,279,000, compared with total revenue for the same period of 2012 of $1,200,032,000, an increase of 13.6%. Net income for the twelve-month period ended December 31, 2013 was $217,112,000, or $1.48 per share, compared with $184,045,000, or $1.26 per share for the same period of 2012, an increase of 18.0%.

J. Powell Brown, President and Chief Executive Officer of the Company, noted, "We are very pleased that we grew our net income 18.0% in 2013. Our Colonial Claims subsidiary, which adjusts flood claims, had core commissions and fees of $1.3 million in the fourth quarter of 2013, but had $7.4 million of core commissions and fees in the fourth quarter of 2012 as a result of the significant flood claims attributable to SuperStorm Sandy. Excluding the impact of Colonial Claims, our core organic commissions and fees in the fourth quarter of 2013 grew by 4.5%. In addition, we continued to improve certain operating profit margins in the fourth quarter."

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 the Company's anticipated financial results for the fourth quarter and full year of 2013. 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. These risks and uncertainties include, but are not limited to, the Company's determination as it finalizes its financial results for the fourth quarter and full year of 2013 that its financial results differ from the current preliminary unaudited numbers set forth herein, other factors that the Company may not have currently identified or quantified, and other risks, relevant factors and uncertainties identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, and the Company's other filings with the Securities and Exchange Commission. 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               For the
                                   Three Months Ended   Twelve Months Ended
                                      December 31,          December 31,
                                 --------------------- ---------------------
                                    2013       2012       2013       2012
                                 ---------- ---------- ---------- ----------
REVENUES
Commissions and fees             $  339,364 $  300,296 $1,355,503 $1,189,081
Investment income                       128        236        638        797
Other income, net                     3,673      2,298      7,138     10,154
                                 ---------- ---------- ---------- ----------
    Total revenues                  343,165    302,830  1,363,279  1,200,032
                                 ---------- ---------- ---------- ----------

EXPENSES
Employee compensation and
 benefits                           179,460    158,467    683,000    608,506
Non-cash stock-based
 compensation                         7,699      4,472     22,603     15,865
Other operating expenses             51,839     44,995    195,677    174,389
Amortization                         17,792     16,123     67,932     63,573
Depreciation                          4,589      3,990     17,485     15,373
Interest                              4,324      4,004     16,440     16,097
Change in estimated acquisition
 earn-out payables                    1,020      1,552      2,533      1,418
                                 ---------- ---------- ---------- ----------
    Total expenses                  266,723    233,603  1,005,670    895,221
                                 ---------- ---------- ---------- ----------

Income before income taxes           76,442     69,227    357,609    304,811

Income taxes                         29,217     26,590    140,497    120,766
                                 ---------- ---------- ---------- ----------

Net income                       $   47,225 $   42,637 $  217,112 $  184,045
                                 ========== ========== ========== ==========

Net income per share:
  Basic                          $     0.32 $     0.30 $     1.50 $     1.28
                                 ========== ========== ========== ==========
  Diluted                        $     0.32 $     0.29 $     1.48 $     1.26
                                 ========== ========== ========== ==========

Weighted average number of
 shares outstanding:
  Basic                             141,355    139,681    141,033    139,364
                                 ========== ========== ========== ==========
  Diluted                           143,036    142,314    142,624    142,010
                                 ========== ========== ========== ==========

Dividends declared per share     $    0.100 $    0.090 $   0.3700 $   0.3450
                                 ========== ========== ========== ==========



                            Brown & Brown, Inc.
                          INTERNAL GROWTH SCHEDULE
                    Core Organic Commissions and Fees(1)
                    Three Months Ended December 31, 2013
                               (in thousands)
                                (unaudited)


                                         Total             Internal Internal
              Quarter  Quarter  Total     Net      Less      Net      Net
               Ended    Ended    Net    Growth  Acquisition Growth   Growth
             12/31/13 12/31/12  Change     %     Revenues     $        %
             -------- -------- -------  ------  ---------- -------  -------

Retail(2)    $184,996 $151,041 $33,955    22.5% $   33,625 $   330      0.2%

National
 Programs      73,528   64,090   9,438    14.7%      3,094   6,344      9.9%

Wholesale
 Brokerage     46,238   40,299   5,939    14.7%          -   5,939     14.7%

Services       28,273   34,398  (6,125)  -17.8%          -  (6,125)   -17.8%
             -------- -------- -------          ---------- -------

Total Core
 Commissions
 and Fees
 (1)         $333,035 $289,828 $43,207    14.9% $   36,719 $ 6,488      2.2%
             ======== ======== =======          ========== =======



                 Reconciliation of Internal Growth Schedule
                        to Total Commissions and Fees
              Included in the Consolidated Statements of Income
            For the Three Months Ended December 31, 2013 and 2012
                               (in thousands)
                                 (unaudited)

                                                    Quarter       Quarter
                                                     Ended         Ended
                                                    12/31/13      12/31/12
                                                 ------------- -------------
Total core commissions and fees(1)               $     333,035 $     289,828
Profit-sharing contingent commissions                    4,382         6,342
Guaranteed supplemental commissions                      1,947         1,937
Divested business                                            -         2,189
                                                 ------------- -------------

Total commissions & fees                         $     339,364 $     300,296
                                                 ============= =============

(1)  Total core commissions and fees are our total commissions and fees less
     (i) profit-sharing contingent commissions (revenues 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), (ii) guaranteed
     supplemental commissions (GSC) (revenues derived from special revenue-
     sharing commissions from insurance companies based solely upon the
     volume of the business placed with such companies during the current
     year),and (iii) divested business (commissions and fees generated from
     offices, books of business or niches sold by the Company or
     terminated).


(2)  The Retail segment includes commissions and fees reported in the
     "Other" column of the Segment Information, which includes corporate and
     consolidation items.



                             Brown & Brown, Inc.
                         CONSOLIDATED BALANCE SHEETS
                    (in thousands, except per share data)
                                 (unaudited)

                                                  December 31,  December 31,
                                                      2013          2012
                                                 ------------- -------------
ASSETS
Current assets:
  Cash and cash equivalents                      $     202,952 $     219,821
  Restricted cash and investments                      250,009       164,564
  Short-term investments                                10,624         8,183
  Premiums, commissions and fees receivable            395,915       302,725
  Deferred income taxes                                 29,276        24,408
  Other current assets                                  39,260        39,811
                                                 ------------- -------------
    Total current assets                               928,036       759,512

Fixed assets, net                                       74,733        74,337
Goodwill                                             2,006,173     1,711,514
Amortizable intangible assets, net                     618,888       566,538
Other assets                                            21,678        16,157
                                                 ------------- -------------
    Total assets                                 $   3,649,508 $   3,128,058
                                                 ============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Premiums payable to insurance companies        $     534,360 $     406,704
  Premium deposits and credits due customers            80,959        32,867
  Accounts payable                                      34,158        48,524
  Accrued expenses and other liabilities               157,400        79,593
  Current portion of long-term debt                    100,000            93
                                                 ------------- -------------
    Total current liabilities                          906,877       567,781

Long-term debt                                         380,000       450,000

Deferred income taxes, net                             291,704       237,630

Other liabilities                                       63,786        65,314

Shareholders' equity:
  Common stock, par value $0.10 per share;
   authorized 280,000 shares; issued and
   outstanding 145,419 at 2013 and 143,878 at
   2012                                                 14,542        14,388
  Additional paid-in capital                           371,960       335,872
  Retained earnings                                  1,620,639     1,457,073
                                                 ------------- -------------
    Total shareholders' equity                       2,007,141     1,807,333
                                                 ------------- -------------

    Total liabilities and shareholders' equity   $   3,649,508 $   3,128,058
                                                 ============= =============

Cory T. Walker
Chief Financial Officer
(386) 239-7250

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