BRO Intrinsic Value Calculator – Brown & Brown Strengthens Insurance Portfolio with Acquisition of Caton-Hosey
December 27, 2023
☀️Trending News
Brown & Brown ($NYSE:BRO), Inc., one of the largest independent insurance intermediaries in the United States, recently announced that it has reached an agreement to purchase Caton-Hosey Insurance, a full-service insurance agency based in Oklahoma City. This move will strengthen Brown & Brown’s portfolio of services as an independent insurance intermediary and will expand its presence in the Oklahoma City area. The company operates through its network of hundreds of independent agencies, which provide commercial and consumer insurance products. The company has grown steadily over the years and has become one of the leading providers of property and casualty insurance products in the country.
By acquiring Caton-Hosey Insurance, Brown & Brown will expand its reach into the Oklahoma City area and further solidify its position as one of the most comprehensive providers of insurance and reinsurance products in the United States. The acquisition will help Brown & Brown to continue to provide customers with a wide range of innovative insurance solutions that can meet their needs.
Share Price
On Tuesday, BROWN & BROWN, Inc. announced the acquisition of Caton-Hosey Insurance Inc., a property and casualty insurance brokerage firm based in Kentucky. This acquisition is expected to further strengthen BROWN & BROWN’s existing insurance portfolio. The impact of this acquisition on BROWN & BROWN’s financial performance is yet to be seen, although its stock opened at $70.2 and closed at $70.4 on Tuesday, decreasing 0.2% from its last closing price of $70.5. The acquisition of Caton-Hosey will further strengthen BROWN & BROWN’s insurance portfolio by expanding its geographic coverage, improving its product suite, and increasing its customer base. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BRO. More…
| Total Revenues | Net Income | Net Margin |
| 4.12k | 735 | 18.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BRO. More…
| Operations | Investing | Financing |
| 985.7 | -193.3 | -426.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BRO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.98k | 8.78k | 18.33 |
Key Ratios Snapshot
Some of the financial key ratios for BRO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.5% | 21.7% | 28.7% |
| FCF Margin | ROE | ROA |
| 22.5% | 14.4% | 5.3% |
Analysis – BRO Intrinsic Value Calculator
At GoodWhale, we have conducted a financial analysis of BROWN & BROWN. Our Valuation Line determined that the fair value of the BROWN & BROWN share is $73.7. Currently, BROWN & BROWN’s stock is trading at $70.4, which is 4.5% below the fair value that we calculated. Therefore, we believe that investors can benefit from purchasing the stock at this price as it is undervalued. More…
Peers
Brown & Brown, Inc. is an American insurance brokerage firm. Its competitors in the insurance brokerage industry are Tian Ruixiang Holdings Ltd, Fanhua Inc, and China United Insurance Service Inc.
– Tian Ruixiang Holdings Ltd ($NASDAQ:TIRX)
Tian Ruixiang Holdings Ltd is a Chinese holding company with investments in a range of businesses, including real estate, education, and healthcare. The company has a market cap of 6.97M as of 2022 and a Return on Equity of -5.01%. Tian Ruixiang’s real estate business is its largest segment, accounting for around half of its revenue. The company’s education business includes a range of schools and colleges, while its healthcare business comprises a hospital and a number of clinics.
– Fanhua Inc ($NASDAQ:FANH)
Fanhua Inc. is a provider of financial services in China. The Company offers property and casualty insurance, life insurance, and reinsurance products. It also provides auto financing, rural financing, and other services. The Company operates through four segments: Insurance Agency, Reinsurance, Auto Finance and Rural Finance.
– China United Insurance Service Inc ($OTCPK:CUII)
54.82M
China United Insurance Service Inc is an insurance company that focuses on providing insurance services to businesses and individuals in China. The company has a market cap of $54.82M and a ROE of 29.69%. The company offers a variety of insurance products, including life, health, and property insurance.
Summary
Brown & Brown, an insurance brokerage and risk management services firm, recently announced an agreement to acquire Caton-Hosey Insurance. The purchase price was not disclosed. It is also expected to add value to shareholders through increased earnings and increased market share.
In addition, the deal provides Caton-Hosey customers access to a broader array of products and services. The acquisition is anticipated to be accretive to Brown & Brown’s earnings in the first full year of operations. This is a positive move for investors in Brown & Brown, as it strengthens the company’s presence and increases its footprint in the fast-growing insurance sector.
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