DAYTONA BEACH, Fla. - Brown & Brown, Inc. (NYSE:BRO), a prominent insurance brokerage firm, has acquired the assets of CHAPP, Inc. and Citrus Insurance Services, Inc., Florida-based agencies specializing in agricultural business risk management.
The acquisition, announced today, marks a further expansion of Brown & Brown's services in the agricultural sector and strengthens its presence in the U.S. insurance market.
CHAPP and Citrus Insurance, founded in 1976, have been integral in providing insurance solutions across the United States. The agencies are known for their family leadership across two generations and have built a reputation as trusted advisors in the agricultural industry.
The acquired entities will integrate into Brown & Brown's existing operations in Lakeland and Sebring, Florida. The team from CHAPP and Citrus Insurance will collaborate with Stacey Heacock, the Lakeland office's profit center leader, and Jason Cloar, executive vice president of Brown & Brown's southwest Florida operations.
Mike Keeby, senior vice president-Retail segment at Brown & Brown, expressed the company's enthusiasm for the acquisition, highlighting the value of the CHAPP and Citrus Insurance teams as innovative risk solution providers. Bucky Payne Sr., on behalf of his family, expressed their pleasure in joining Brown & Brown, anticipating the expanded services they can now offer customers through Brown & Brown's extensive capabilities.
Brown & Brown, established in 1939, has grown to become a leading player in the insurance industry with over 16,000 teammates in more than 500 locations globally.
This article is based on a press release statement.
InvestingPro Insights
As Brown & Brown, Inc. (NYSE:BRO) fortifies its position in the agricultural insurance sector with the recent acquisition of CHAPP, Inc. and Citrus Insurance Services, Inc., the company's financial health and market performance provide a broader context for evaluating its strategic move. With a solid market capitalization of 24.4 billion USD, Brown & Brown displays significant financial strength within the industry.
Investors may find encouragement in Brown & Brown's consistent track record of dividend reliability, as evidenced by their history of raising dividends for 31 consecutive years, which is a testament to the company's commitment to shareholder returns. This, coupled with a notable revenue growth of 17.88% over the last twelve months as of Q4 2023, suggests a healthy capacity for expansion and financial flexibility.
From a valuation standpoint, Brown & Brown is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 27.89. This could indicate that the stock is reasonably valued in comparison to its growth prospects. Furthermore, the company has demonstrated a strong return over the last three months, with a price total return of 23.33%, reflecting positive investor sentiment and market performance.
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