(Reuters) -Insurance broker Brown & Brown posted a higher third-quarter adjusted profit on Monday, helped by stronger commissions and fees as demand continued to rise.
Insurance spending has kept rising as businesses and individuals cut back elsewhere, driven by efforts to protect against climate-related disasters and new risks like cyber threats.
The sector’s resilience comes from its role as a financial safety net, leaving it less affected by changes in discretionary spending or broader economic slowdowns.
Its commissions and fees jumped 34.2% to $1.55 billion in the three months ended September 30.
Insurance brokerages like Brown & Brown act as intermediaries between insurers and customers, helping clients choose policies that best suit their coverage needs.
Unlike agents who usually represent one insurer, brokerages work with several providers to give clients a wider range of options.
Brown & Brown’s total revenue increased to $1.61 billion in the reported quarter, from $1.19 billion in the year earlier.
The company’s investment and other income rose to $56 million in the quarter, versus $31 million a year earlier.
Insurers earn investment returns by investing the premiums they collect in low-risk assets such as bonds and real estate until claims are paid out.
Brown & Brown’s adjusted net income per share was $1.05 in the third quarter. That compares with 91 cents per share a year earlier.
(Reporting by Pritam Biswas and Manya Saini in Bengaluru; Editing by Maju Samuel)
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