Insurance brokerage Brown & Brown, Inc. has reported a 5.6% growth in organic revenue during the first quarter of 2020, while also outlining measures to prepare for the impact of the COVID-19 pandemic.
The company expects to borrow $250 million on its existing revolving line of credit to use for additional liquidity to shore against the coronavirus crisis.
Brown & Brown revenues in Q1 2020 were $698.5 million, increasing $79.2 million, or 12.8%, compared to the first quarter of the prior year, with commissions and fees increasing by 12.8%.
Net income was $152.4 million, increasing $38.5 million, or 33.8%, compared with the same period last year.
The broker also lowered its estimates for the revenues it expects to earn from existing employee benefits and workers’ compensation policies, resulting in a reduction to revenue of $10.5 million and a $5.8 million reduction to income in Q1.
These estimates were revised due to the anticipated impact of COVID-19 on the future levels of employment of customers, as well as the negative effect on the economy, which will likely weigh on the performance of businesses acquired by Brown & Brown over the last three years.
“Our financial performance for first quarter was outstanding and I would like to thank all of our teammates for making that possible,” said J. Powell Brown, President and Chief Executive Officer of Brown & Brown.
“Our focus is on the safety and health of our teammates and their families and serving our customers during these unprecedented times,” he added.
“We believe our long-term focus will be to the of benefit our teammates, customers, shareholders, and carrier partners.”