Brown & Brown misses earnings expectations for Q3

Trending News 🌧️

BRO Intrinsic Value – Brown & Brown ($NYSE:BRO) is a large publicly traded insurance brokerage firm headquartered in Daytona Beach, Florida. The company attributes the miss to unfavorable reserve development in their professional lines segment, as well as lower than expected investment income.

Earnings

Brown & Brown, Inc. is an American insurance brokerage firm. Net income for the quarter was $613.6 million, an increase of 4.5% from the same period last year.

Share Price

Brown & Brown, Inc. reported its third quarter earnings yesterday, and unfortunately the results fell short of expectations. This news has caused a negative sentiment among investors, and as of Monday morning, the stock prices have reflected this. Brown & Brown opened at $62.1 on Monday and has since closed at $63.1, up 2.5% from its previous closing price of 61.5.

It is clear that investors are still cautious about the company, but are willing to give it another chance as evidenced by the slight uptick in stock prices. It remains to be seen if Brown & Brown can turn things around and meet earnings expectations in the future, but for now, it seems that investors are taking a wait-and-see approach.

VI Analysis – BRO Intrinsic Value

Brown & Brown is a company that provides insurance and risk management services. The company’s fundamentals reflect its long-term potential, and the VI app makes it easy to analyze this data. The fair value of Brown & Brown stock is around $60.6, and it is currently traded at $63.1, which is 4% overvalued.

VI 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

Investing in Brown & Brown may not be the best idea right now as the company has missed earnings expectations for the third quarter. At the time of writing, news sentiment about the company is mostly negative. However, if you are interested in investing in Brown & Brown, you should do your own research to make sure that it is a wise decision for you.