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Brown & Brown: 15% Upside For A Stable, U.S. Focused Company

Brown & Brown (BRO) is one the leading national mid-market insurance brokers. The firm markets and sells insurance products and services in the United States to commercial, public, professional, and individual customers. Brown & Brown operates in 4 divisions, retail, national programs, wholesale brokerage, and services. We believe that BRO's leverage to an improving US economy and proven M&A program will allow the company to achieve reasonable growth.

We view Brown & Brown's solid Q4 results as indication that organic growth and margin expansion will likely continue. As the US economy continued to improve, the financial health of middle-market customers improved as well, driving higher commission and fee revenue for Brown & Brown. In particular, we think that Brown & Brown's domestic focus will position the firm well for a rebound in regions such as Florida and California, which has seen lighter economic performance recently. Improvements in P&C pricing trends… Read More …