Brown & Brown Inc., the family-run insurance broker, fell the most since 2011 after profit missed analysts’ estimates amid slowing revenue growth from commissions and fees.
Brown & Brown declined 7.8 percent to $28.28 at 4:03 p.m. in New York. The stock has fallen 2.4 percent in the past year, compared with the 18 percent gain of the Russell 1000 Index.
Fourth-quarter net income was 32 cents a share, missing by three cents the average estimate of 16 analysts surveyed by Bloomberg. Adjusted organic growth, a revenue measure that excludes acquisitions and currency fluctuations, slowed to 4.5 percent, the company said in a statement late yesterday. That growth rate was 7.3 percent in the third quarter.
“Organic growth appears very average compared with the industry overall and rather disappointing relative to Brown’s first three quarters of 2013, which averaged organic growth of 8.3 percent,” Charles Sebaski, an analyst at BMO Capital Markets, said in a note to investors. He rates the company the equivalent of neutral.
Net income rose 11 percent to $47.2 million, Brown & Brown said. Revenue for the period was $343.2 million, missing the average $347.1 million expected by analysts.