Acquisitive US broking group Brown & Brown reported second quarter organic revenues revenues that climbed 5.2 percent.
Organic revenues increased by $23.4mn to hit $472.7mn during the period. The revenue measure strips out things like growth from acquisition and profit-sharing contingent commissions.
At $154.5mn, Ebitdac - which measures earnings before items such as interest and tax are taken into account - was just above the $150.6mn the group reported this time last year, on an adjusted basis.
That contributed to an Ebitdac margin of 30.9 percent, lower than the 32.2 percent the broking house reported for the second quarter of 2017.
Net income at the broking house increased 11.8 percent to $73.9mn during the quarter. However Brown & Brown noted that the figure was $12.4mn lower than it would have been if it had been reported this time last year due to a change in accounting standards.
It also said that its $473.1mn of reported revenue in the second quarter was $27.2mn lower as a result of the reporting change.
Revenues from commissions and fees made up the vast majority of that figure. However that was partly offset by an increase in profit-sharing contingent commission payments, which grew to $14mn, an increase of 17.6 percent on last year.
Meanwhile, guaranteed supplemental commission payments dipped to $2.5mn during the quarter, down from the $3mn it reported this time last year.
The group’s wage and benefit bill was 3.1 percent higher than this time last year at $252mn.
“Our business continues to perform well, and we are pleased with our strong organic growth and our new acquisitions for this quarter and year to date,” said Brown & Brown boss Powell Brown.