Upcoming AWS Coverage on Aon PLC Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 27, 2017 / Active Wall St. announces its post-earnings coverage on Brown & Brown, Inc. (NYSE: BRO). The Company released its financial results for the fourth quarter and full year 2016 on January 23, 2017. The insurance Company's top- and bottom-line numbers outperformed market estimates. Register with us now for your free membership at:

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One of Brown & Brown's competitors within the Insurance Brokers space, Aon PLC (NYSE: AON), announced on January 16, 2017, that it will release its Q4 and full year 2016 results on Friday, February 10th, 2017, in a news release before the market opens. AWS will be initiating a research report on Aon PLC in the coming days.

Today, AWS is promoting its earnings coverage on BRO; touching on AON. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=BRO

http://www.activewallst.com/registration-3/?symbol=AON

Earnings Reviewed

For the quarter December 31, 2016, Brown & Brown's revenues were $433.6 million, an increase of $28.9 million, or 7.1%, compared to Q4 2015, with organic revenue increasing by 3.5%. The Company's revenue numbers topped Wall Street's expectations of $429.3 million. For FY16, the Company's revenues totaled $1.77 billion, an increase of $106.0 million, or 6.4%, compared to FY15.

For Q4 2016, Brown & Brown's income before interest, income taxes, depreciation, amortization, and the change in estimated acquisition earn-out payables (EBITDAC) was $134.1 million, an increase of $1.0 million, or 0.8%, compared to Q4 2015. The Company's EBITDAC margin decreased from 32.9% in Q4 2015 to 30.9% in Q4 2016.

For Q4 2016, Brown & Brown reported net income of $57.7 million, a decrease of 0.7% on a y-o-y basis, and diluted earnings per share were $0.41, unchanged from Q4 2015. Excluding the impact of changes in acquisition earn-out payables and the non-cash stock-based compensation adjustment, the Company's adjusted diluted earnings per share totaled $0.42, up by 10.5%, compared to the same period in 2015. The results exceeded analysts' forecasts for earnings of $0.41 per share. For FY16, Brown & Brown's net income was $257.5 million, an increase of 5.7%, and diluted earnings per share for the twelve months ended December 31, 2016 were $1.82, an increase of $0.12, or 7.1%, compared to the same period of 2015.

Segment Results

For Q4 2016, Brown & Brown's retail division delivered revenue of $218.5 million up 4.2% on a y-o-y basis. The segment's y-o-y reported EBITDAC margin had decreased by 160 basis points. However, on an adjusted basis, the EBITDAC margin increased 30 basis points over 2015, primarily from increased contingents realized during Q4 2016.

National Programs division registered a 5.3% revenue improvement at $109.8 million in Q4 2016. During the reported quarter, the segment flood business realized approximately $3 million of incremental claims revenue versus the prior year associated with weather-related events. For Q4 2016, National Program's income before income taxes as a percentage of revenue increased from 17.5% to 20.3% due primarily to lower intercompany interest expense charges. The segment's EBITDAC margin decreased by 50 basis points due to a write-off of a policy administration system related to one of its programs that is switching carriers in 2017.

During Q4 2016, Brown & Brown's Wholesale Brokerage division delivered total revenue of $56.4 million, growing by 19.9% on a y-o-y basis which was driven by the Company's acquisitions and organic revenue growth was 2.9%. The segment's EBITDAC margins were 26.5% for the reported quarter which is a decline of 410 basis points from the prior year. This decline was driven primarily by higher continued transaction volumes and lower pricing as well acquisition done in Q2 2016.

The Company's Services division grew 12.6% on a y-o-y basis to $38.4 million, while its organic growth was 6.2%.

Balance Sheet

As of December 31, 2016, Brown & Brown's cash and cash equivalents totaled $515.7 million, up from cash and cash equivalents of $443.4 million on December 31, 2015. The Company's long-term debt was $1.018 billion as on December 31, 2016, down 5% from $1.071 billion as of December 31, 2015. On January 20, 2017, Brown & Brown announced that the Board of Directors has declared a regular quarterly cash dividend of $0.1350 per share. The dividend is payable on February 15, 2017 to shareholders of record on February 03, 2017.

Stock Performance

At the closing bell, on Thursday, January 26, 2017, Brown & Brown's share price finished the trading session at $43.48, marginally advancing 0.65%. A total volume of 516.57 thousand shares exchanged hands. The stock has advanced 19.30% and 18.89% in the last three months and past six months, respectively. Furthermore, in the previous twelve months, shares of the Company have surged 51.78%. The stock is trading at a PE ratio of 23.39 and has a dividend yield of 1.24%.

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SOURCE: Active Wall Street