Brown & Brown Inc. (BRO:US) jumped the most since April after the insurance broker’s fourth-quarter profit beat analysts’ estimates on stronger-than-expected revenue.
The broker climbed 5.4 percent to $28.97 at 4:15 p.m. in New York. The Daytona Beach, Florida-based company has rallied (BRO:US) 14 percent this year, double the gain in the Standard and Poor’s Midcap 400 Index.
Earnings per share were 29 cents, beating by two cents the average estimate (BRO:US) of 17 analysts surveyed by Bloomberg. So-called organic revenue, which excludes recently purchased businesses and some fees from insurers, climbed 5.4 percent, the insurer said in a statement after the close of regular trading on Feb. 1. That exceeded the 2.1 percent growth estimate of Meyer Shields, an analyst with Stifel Nicholas & Co.
“We expect organic growth to steadily improve along with the middle-market economy and rising commercial insurance rate increases in 2013,” Shields said in a note today.
Shields has a buy rating on the company.
To contact the reporter on this story: Elizabeth Bunn in New York at email@example.com
To contact the editor responsible for this story: Dan Kraut at firstname.lastname@example.org