Brown & Brown Insurance 2016 Annual Report

Dear Fellow Shareholders:
Brown & Brown has long held that the only constant is change. Nowhere
was that principle more apt than the insurance marketplace in 2016.
Carriers sought premium growth, alternative capital searched for greater
investment returns, acquisition valuations were at historic highs, and a
new U.S. president pledged to repeal and replace the Affordable Care
Act. These changes and challenges in 2016 have created, and will continue
to create, numerous opportunities for Brown & Brown.
We ended 2016 with annual revenues of
approximately $1,767 million, an increase
of 6.4% from the prior year. Interestingly
enough, the $106 million increase in our
annual revenues is more than Brown &
Brown’s total annual revenues when I first
joined the Company as a producer in July
1995. Fiscal year 2016 was another good
year, reflected by the following financial
and operational highlights:
n Organic revenue growth in all four
segments
n Industry-leading operating margins
n Net income increased by 5.8% to
approximately $260 million
n Earnings per share increased by 7.1%
to $1.82
n 23rd consecutive annual dividend increase,
returning approximately $70 million to
shareholders
n Total shareholder return of 45%
J. Powell Brown, CPCU
President and
Chief Executive Officer
n Technology improvements to support
further growth, including implementation
of a new company-wide financial system
and introduction of a standardized
agency management system for our
Retail Segment