Brown & Brown (BRO) 8-K Second Quarter Results Again Set Record Levels

Exhibit 99.1

[LOGO OF BROWN & BROWN]

	News Release
	Cory T. Walker
July 12, 2004	Chief Financial Officer
	(386) 239-7250

BROWN & BROWN, INC.

SECOND QUARTER RESULTS AGAIN SET RECORD LEVELS

FOR REVENUES AND INCOME

(Daytona Beach and Tampa, Florida) . . . Brown & Brown, Inc. (NYSE:BRO) announced net income for the second quarter of 2004 of $32,153,000, or $0.46 per share, an increase of 15.1% over the $27,935,000, or $0.41 per share, reported for the quarter ended June 30, 2003. Total revenue for the quarter ended June 30, 2004 was $157,942,000 compared with 2003 second-quarter revenue of $137,858,000 an increase of 14.6%.

Total revenue for the six months ended June 30, 2004 was $323,507,000, compared with first-half 2003 revenue of $282,594,000, up 14.5%. Net income for the first six months of 2004 was $68,501,000 versus $58,471,000 during the same period in 2003, an increase of 17.2%. Net income per share for the six months ended June 30, 2004 was $0.99, versus the $0.85 per share posted during the comparable 2003 period, an increase of 16.5%.

J. Hyatt Brown, Chairman and CEO, commenting on the results said, “We are very pleased with our second quarter results. The internal growth rate of 5.1% exceeded our expectations, particularly in view of continued rate erosion; which was possibly offset by increases in exposure units. Brown & Brown’s high quality sustained growth continues to be recognized by investors as our market capitalization recently crossed the $3 billion level.”

President and Chief Operating Officer, Jim W. Henderson added, “We continue our steady march to our intermediate goal of B-40. We have been assisted in this march by the addition of many fine, high quality, insurance agencies that have joined our team during the second quarter of 2004. Since April 1, 2004, we have completed ten acquisitions with estimated annual revenues of $38 million, bringing the total for the year to 21 with $86 million of estimated annual revenues. Among those most recently joining us is The McDuffee Insurance Agency, which represented our initial entry into New Hampshire and Massachusetts. We continue to be quite pleased with the active pipeline of high-quality agencies.”

Brown & Brown, Inc. and its subsidiaries offer a broad range of insurance and reinsurance products and services, as well as risk management, employee benefit

administration, and managed health care programs. Providing service to business, public entity, individual, trade and professional association clients nationwide, the Company is ranked byBusiness Insurance magazine as the United States’ sixth largest independent insurance intermediary. Our Web address iswww.bbinsurance.com.

This press release may contain certain statements relating to future results which are forward-looking statements. These statements are not historical facts, but instead represent only the Company’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, are contained in the Company’s filings with the Securities and Exchange Commission. Some factors include: general economic conditions around the country; downward commercial property and casualty premium pressures; the competitive environment; the integration of the Company’s operations with those of businesses or assets the Company has acquired or may acquire in the future and the failure to realize the expected benefits of such integration; the potential occurrence of a disaster that affects certain areas of the States of Arizona, California, Florida, New Jersey, New York and/or Washington, where significant portions of the Company’s business are concentrated; the actual costs of resolution of contingent liabilities; and those factors relevant to Brown & Brown’s consummation and integration of announced acquisitions, including any matters analyzed in the due diligence process, material adverse changes in the customers of the companies whose operations are acquired, and material adverse changes in the business and financial condition of either or both companies and their respective customers. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.

Brown & Brown, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

	For the Three Months Ended				For the Six Months Ended
	June 30				June 30
	2004		2003		2004		2003
REVENUES
Commissions and fees	$	156,749	$	137,257	$	321,063	$	281,509
Investment income		333		442		1,021		775
Other income, net		860		159		1,423		310
Total revenues		157,942		137,858		323,507		282,594
EXPENSES
Employee compensation and benefits		76,270		66,092		152,552		134,333
Non-cash stock grant compensation		665		632		1,510		1,449
Other operating expenses		19,983		19,229		41,379		38,635
Amortization		5,483		4,416		10,300		8,753
Depreciation		2,269		2,019		4,423		3,946
Interest		743		946		1,454		1,953
Total expenses		105,413		93,334		211,618		189,069
Income before income taxes		52,529		44,524		111,889		93,525
Income taxes		20,376		16,589		43,388		35,054
Net income	$	32,153	$	27,935	$	68,501	$	58,471
Net income per share:
Basic	$	0.47	$	0.41	$	1.00	$	0.86
Diluted	$	0.46	$	0.41	$	0.99	$	0.85
Weighted average number of shares outstanding:
Basic		68,790		68,270		68,736		68,222
Diluted		69,370		68,943		69,283		68,927

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Brown & Brown, Inc.

INTERNAL GROWTH SCHEDULE

Core Commissions and Fees⁽¹⁾

Three Months Ended June 30, 2004

(in thousands)

(unaudited)

	Quarter Ended 6/30/04		Quarter Ended 6/30/03		Total Net Change		Total Net Growth %		Less Acquisition Revenues		Internal Net Growth %
Florida Retail	$	36,032	$	34,762	$	1,270	3.7	%	$	—	3.7	%
National Retail		47,508		33,673		13,835	41.1	%		13,815	0.1	%
Western Retail		29,146		24,212		4,934	20.4	%		2,581	9.7	%
Total Retail		112,686		92,647		20,039	21.6	%		16,396	3.9	%
Professional Programs		10,087		8,885		1,202	13.5	%		849	4.0	%
Special Programs		14,659		9,540		5,119	53.7	%		4,997	1.3	%
Total Programs		24,746		18,425		6,321	34.3	%		5,846	2.6	%
Brokerage		8,270		6,351		1,919	30.2	%		895	16.1	%
TPA Services		6,086		4,952		1,134	22.9	%		—	22.9	%
Total Core Commissionsand Fees(1)	$	151,788	$	122,375	$	29,413	24.0	%	$	23,137	5.1	%

Reconciliation of Internal Growth Schedule

to Total Commissions and Fees

Included in the Consolidated Statements of Income

for the Three Months Ended June 30, 2004 and 2003

(in thousands)

(unaudited)

	Quarter Ended 6/30/04		Quarter Ended 6/30/03
Total core commissions and fees(1)	$	151,788	$	122,375
Contingent commissions		3,522		10,202
Divested business		1,439		4,680
Total Commission & Fees	$	156,749	$	137,257

(1) Total core commissions and fees are our total commissions and fees less (i) contingent commissions (revenue derived from special revenue-sharing commissions from insurance companies based upon the volume and the growth and/or profitability of the business placed with such companies during the prior year), and (ii) divested business (commissions and fees generated from offices, books of business or niches sold by the Company or terminated).

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Brown & Brown, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands)

(Unaudited)

	June 30, 2004		December 31, 2003
ASSETS
Current assets:
Cash and cash equivalents	$	36,384	$	56,926
Restricted cash		133,194		116,543
Short-term investments		386		382
Premiums, commissions and fees receivable		146,669		146,672
Other current assets		17,833		22,943
Total current assets		334,466		343,466
Fixed assets, net		32,990		32,396
Goodwill, net		300,732		237,753
Amortizable intangible assets, net		308,361		232,934
Investments		10,353		10,845
Other assets		7,197		8,460
Total assets	$	994,099	$	865,854
LIABILITIES
Current liabilities:
Premiums payable to insurance companies	$	216,788	$	199,628
Premium deposits and credits due customers		23,769		22,223
Accounts payable		20,163		11,282
Accrued expenses		38,474		49,691
Current portion of long-term debt		68,455		18,692
Total current liabilities		367,649		301,516
Long-term debt		34,313		41,107
Deferred income taxes, net		17,176		15,018
Other liabilities		9,063		10,178
SHAREHOLDERS’ EQUITY
Common stock, par value $0.10 per share; authorized 280,000 shares; issued and outstanding, 68,808 at 2004 and 68,561 at 2003		6,881		6,856
Additional paid-in capital		178,577		170,130
Retained earnings		375,695		316,822
Accumulated other comprehensive income		4,745		4,227
Total shareholders’ equity		565,898		498,035
Total liabilities and shareholders’ equity	$	994,099	$	865,854

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