Brown & Brown announces business segment reorganization after recent acquisition

Brown & Brown, Inc. (NYSE:BRO) announced a reorganization of its business segments following its acquisition of RSC Topco, Inc., the holding company for Accession Risk Management Group, Inc. The company stated that, starting in the third quarter of 2025 (effective July 1, 2025), it will consolidate its Programs and Wholesale Brokerage segments into a new Specialty Distribution segment. Going forward, Brown & Brown will report financial results under two segments: Retail and Specialty Distribution.

The company provided supplemental information with its SEC filing, including unaudited historical business segment data recast to reflect the new segment structure. This data covers the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, as well as each full year from 2020 to 2024. The company has demonstrated strong operational performance with 11.4% revenue growth in the last twelve months and has maintained dividend increases for 32 consecutive years.

Brown & Brown stated that the segment reorganization does not affect its previously reported consolidated statements of income, balance sheets, statements of cash flows, statements of comprehensive income, or statements of shareholders’ equity. The company also noted that it did not operate under the new segment structure during any of the prior periods for which historical data has been recast.

This information is based on a press release statement included in the company’s Form 8-K filed with the Securities and Exchange Commission.

In other recent news, Brown & Brown, Inc. reported several significant developments. The company completed a major acquisition by purchasing Accession Risk Management Group from Kelso & Company for approximately $9.83 billion, marking one of the largest exits in the insurance brokerage sector. Additionally, Brown & Brown expanded its dealer services by acquiring the assets of Tire Shield, Inc., which provides administrative services for tire and wheel products. On the financial front, Wells Fargo (NYSE:WFC) downgraded Brown & Brown’s stock from Overweight to Equal Weight, citing weaker-than-expected organic growth of 3.6% in the second quarter, which fell below the industry average. Similarly, Keefe, Bruyette & Woods lowered its price target for the company to $87, maintaining an Underperform rating due to concerns over slower organic growth and increased expenses. In leadership updates, Brown & Brown appointed Joia M. Johnson, a former executive at Hanesbrands (NYSE:HBI), to its board of directors. These developments reflect the company’s strategic moves and challenges in the current market landscape.

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