Brown & Brown's Earnings Growth Outpaces US Market, But Margins Narrow Amid Cost Pressures.

Brown & Brown's (BRO) net profit margin has declined to 18.3% from 22.8% last year, despite forecast-beating earnings. The company has completed 13 acquisitions with projected annual revenues of $36 million, aiming to reinforce its expansion strategy and enhance future revenue streams. Analysts expect margins to further shrink to 18.0% over the next 3 years, creating tension for those hoping for stable bottom-line performance. Effective cost management and diversified business lines are argued to help insulate future performance from sector-specific shocks.