5 Best Insurance Brokerage Stocks To Buy Now

In this article, we discuss 5 best insurance brokerage stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Insurance Brokerage Stocks To Buy Now. 

5. Brown & Brown, Inc. (NYSE:BRO)

Number of Hedge Fund Holders: 29

Brown & Brown, Inc. (NYSE:BRO) offers insurance products and services in the United States, Canada, Ireland, and the United Kingdom. It has four main business segments – Retail, National Programs, Wholesale Brokerage, and Services. On April 25, Brown & Brown, Inc. (NYSE:BRO) reported a Q1 non-GAAP EPS of $0.84 and a revenue of $1.12 billion, outperforming Wall Street estimates by $0.03 and $50 million, respectively. It is one of the best insurance brokerage stocks to invest in. 

On April 25, Brown & Brown, Inc. (NYSE:BRO) declared a $0.115 per share quarterly dividend, in line with previous. The dividend is payable on May 17, to shareholders of the company as of May 8. 

Citi analyst Michael Ward upgraded Brown & Brown, Inc. (NYSE:BRO) on April 18 to Buy from Neutral with a price target of $69, up from $62. The analyst favors property and casualty brokers over underwriters due to their lower balance sheet risk. Despite some difficulties faced by Brown & Brown, Inc. (NYSE:BRO) recently, including tough comparisons in employee benefits, dealer services headwinds, and disruptions caused by Hurricane Ian, the company is poised for growth, according to the analyst. 

According to Insider Monkey’s fourth quarter database, 29 hedge funds were bullish on Brown & Brown, Inc. (NYSE:BRO), compared to 27 funds in the prior quarter. Select Equity Group is the largest stakeholder of the company, with 17.2 million shares worth $983.40 million. 

TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about Brown & Brown, Inc. (NYSE:BRO) in its Q4 2022 investor letter:

“With the improving backdrop for insurance companies, we began a position in Brown & Brown, Inc. (NYSE:BRO). An independent insurance broker specializing in property, casualty, employee benefits, personal lines, and ancillary services, we believe that Brown will benefit as insurance pricing broadly increases and the company has consistently higher margins than peers. The recent weakness in its shares provided a particularly attractive opportunity for building our position.”