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Brown & Brown, Inc. Announces 6.2% Increase in Total Revenues and Attainment of $1 Billion Revenue Goal

DAYTONA BEACH, FL and TAMPA, FL, Feb 03, 2012 (MARKETWIRE via COMTEX) --Brown & Brown, Inc. (NYSE: BRO) today announced its financial results for the fourth quarter of 2011.

Net income for the fourth quarter of 2011 was $36,494,000, or $0.25 per share, compared with $32,146,000, or $0.22 per share for the same quarter of 2010, an increase of 13.5%. Total revenue for the fourth quarter ended December 31, 2011 was $244,097,000, compared with 2010 fourth-quarter revenue of $229,938,000, an increase of 6.2%.

Total revenue for the twelve months ended December 31, 2011 was $1,014,000,000, compared with total revenue for the same period of 2010 of $973,492,000, an increase of 4.2%. Net income for the twelve-month period ended December 31, 2011 was $163,995,000, or $1.13 per share, compared with $161,752,000, or $1.12 per share for the same period of 2010, an increase of 1.4%.

J. Hyatt Brown, Chairman and acting President and Chief Executive Officer of the Company, noted, "We congratulate Powell Brown and his senior leadership team and all of our people on the achievement of one of our intermediate goals of exceeding $1 billion in total revenues. We challenged our team with this $1 billion goal shortly after the end of 2001 when we attained $365 million in total revenues. To reach this goal and to nearly triple our revenues during this time period, given the overwhelming economic headwinds of the last four years, is I believe a testament to the strength, focus and dedication of each individual in our company."

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 of 2011 and the twelve months ended December 31, 2011. 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 of 2011 and the twelve months ended December 31, 2011 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 twelve months ended December 31, 2010, subsequent Reports on Form 10-Q and Form 8-K 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,
                     --------------------------  --------------------------
                         2011          2010          2011          2010
                     ------------  ------------  ------------  ------------
REVENUES
Commissions and fees $    241,350  $    229,088  $  1,005,962  $    966,917
Investment income             333           304         1,267         1,326
Other income, net           2,414           546         6,313         5,249
                     ------------  ------------  ------------  ------------
    Total revenues        244,097       229,938     1,013,542       973,492
                     ------------  ------------  ------------  ------------

EXPENSES
Employee compensation
 and benefits             129,389       122,264       508,675       487,820
Non-cash stock-based
 compensation               2,856         1,615        11,194         6,845
Other operating
 expenses                  34,590        34,595       144,079       135,851
Amortization               13,965        13,370        54,755        51,442
Depreciation                3,116         3,141        12,392        12,639
Interest                    3,352         3,624        14,132        14,471
Change in estimated
 acquisition earn-out
 payables                  (2,862)         (638)       (2,206)       (1,674)
                     ------------  ------------  ------------  ------------
    Total expenses        184,406       177,971       743,021       707,394
                     ------------  ------------  ------------  ------------

Income before income
 taxes                     59,691        51,967       270,521       266,098

Income taxes               23,197        19,821       106,526       104,346
                     ------------  ------------  ------------  ------------

Net income           $     36,494  $     32,146  $    163,995  $    161,752
                     ============  ============  ============  ============

Net income per share:
  Basic              $       0.25  $       0.23  $       1.15  $       1.14
                     ============  ============  ============  ============
  Diluted            $       0.25  $       0.22  $       1.13  $       1.12
                     ============  ============  ============  ============

Weighted average
 number of shares
 outstanding:
  Basic                   138,796       138,190       138,582       137,924
                     ============  ============  ============  ============
  Diluted                 140,547       139,660       140,264       139,318
                     ============  ============  ============  ============

Dividends declared
 per share           $     0.0850  $       0.08  $     0.3250  $     0.3125
                     ============  ============  ============  ============


                             Brown & Brown, Inc.
                          INTERNAL GROWTH SCHEDULE
                        Core Commissions and Fees (1)
                    Three Months Ended December 31, 2011
                               (in thousands)
                                 (unaudited)

                                                    Less
               Quarter  Quarter   Total    Total  Acquisit Internal Internal
                Ended    Ended     Net      Net      ion      Net      Net
              12/31/11 12/31/10  Change  Growth % Revenues Growth $ Growth %
              -------- -------- -------- -------- -------- -------- --------

Florida Retail $37,820  $37,236     $584     1.6%     $607    $(23)   (0.1)%
National
 Retail         78,667   73,171    5,496     7.5%    8,669  (3,173)   (4.3)%
Western Retail  26,177   21,709    4,468    20.6%    6,026  (1,558)   (7.2)%
              -------- -------- --------          -------- --------
 Total Retail  142,664  132,116   10,548     8.0%   15,302  (4,754)   (3.6)%
              -------- -------- --------          -------- --------

Professional
 Programs       10,365   10,842    (477)   (4.4)%        -    (477)   (4.4)%
Special
 Programs       34,187   30,107    4,080    13.6%    1,560    2,520     8.4%
              -------- -------- --------          -------- --------
Total National
 Programs       44,552   40,949    3,603     8.8%    1,560    2,043     5.0%
              -------- -------- --------          -------- --------

Wholesale
 Brokerage      32,842   31,857      985     3.1%        -      985     3.1%

Services        16,482   15,975      507     3.2%       97      410     2.6%
              -------- -------- --------          -------- --------

Total Core
 Commissions
 and Fees(1)  $236,540 $220,897  $15,643     7.1%  $16,959 $(1,316)   (0.6)%
              ======== ======== ======== ======== ======== ======== ========


                 Reconciliation of Internal Growth Schedule
                        to Total Commissions and Fees
              Included in the Consolidated Statements of Income
            For the Three Months Ended December 31, 2011 and 2010
                               (in thousands)
                                 (unaudited)
                                                Quarter           Quarter
                                                 Ended             Ended
                                                12/31/11          12/31/10
                                           -----------------   -------------
Total core commissions and fees(1)         $         236,540   $     220,897
Contingent commissions                                 4,810           6,385
Divested business                                          -           1,806
                                           -----------------   -------------

Total commission & fees                    $         241,350   $     229,088
                                           =================   =============

(1) Total core commissions and fees are our total commissions and fees less (i) profit-sharing contingent commissions (revenue 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), and (ii) divested business (commissions and fees generated from offices, books of business or niches sold by the Company or terminated).

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

                                          December 31,       December 31,
                                              2011               2010
                                       ------------------ ------------------
ASSETS
 Current assets:
  Cash and cash equivalents            $          286,305 $          272,984
  Restricted cash and investments                 130,535            123,594
  Short-term investments                            7,627              7,678
  Premiums, commissions and fees
   receivable                                     240,257            214,446
  Deferred income taxes                            19,863             20,076
  Other current assets                             23,540             14,031
                                       ------------------ ------------------
   Total current assets                           708,127            652,809

Fixed assets, net                                  61,360             59,713
Goodwill                                        1,323,469          1,194,827
Amortizable intangible assets, net                496,182            481,900
Other assets                                       17,873             11,565
                                       ------------------ ------------------
   Total assets                        $        2,607,011 $        2,400,814
                                       ================== ==================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Premiums payable to insurance
   companies                           $          327,096 $          311,346
  Premium deposits and credits due
   customers                                       30,048             28,509
  Accounts payable                                 22,384             33,693
  Accrued expenses and other
   liabilities                                    100,865             94,947
  Current portion of long-term debt                 1,227              1,662
                                       ------------------ ------------------
   Total current liabilities                      481,620            470,157

Long-term debt                                    250,033            250,067

Deferred income taxes, net                        178,052            146,482

Other liabilities                                  53,343             27,764

Shareholders' equity:
  Common stock, par value $0.10 per
   share; authorized 280,000 shares;
   issued and outstanding 143,352 at
   2011 and 142,795 at 2010                        14,335             14,279
  Additional paid-in capital                      307,059            286,997
  Retained earnings                             1,322,562          1,205,061
  Accumulated other comprehensive
   income                                               7                  7
                                       ------------------ ------------------

   Total shareholders' equity                   1,643,963          1,506,344
                                       ------------------ ------------------

   Total liabilities and shareholders'
   equity                              $        2,607,011 $        2,400,814
                                       ================== ==================

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


SOURCE: Brown & Brown, Inc.

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