Brown & Brown

Parnassus Growth Equity Fund sold its position in Brown & Brown during Q2, citing rising near‑term risks as the insurance broker navigates an industry downturn, integrates a large acquisition and works to close an AI capability gap versus larger peers. The fund described Brown & Brown as a high‑quality business but opted to reduce exposure amid these operational and competitive challenges. Parnassus remains selectively bullish on U.S. equities while prioritizing valuation-sensitive, disruptive growth opportunities. » More on finance.yahoo.com

Orbis Global Equity Strategy argues Brown & Brown is mispriced as an AI casualty and considers it part of an 'overlooked' cohort with durable fundamentals. The firm says AI may automate commodity lines like personal auto (under 5% of Brown & Brown's book) but is unlikely to displace judgment-heavy commercial and specialty brokerage work. Brown & Brown shares have underperformed over the past year, but Orbis views the company's human-led brokerage model as a defensive position amid AI-driven market winners. » More on finance.yahoo.com

Brown & Brown reported Q2 revenue of $1.7 billion, up 30.4% driven largely by acquisitions and higher contingent commissions, while adjusted diluted EPS increased 3.9% to $1.07. Organic revenue fell 0.7% excluding contingent commissions, with Retail growing modestly and Specialty Distribution declining; adjusted EBITDAC margin declined 100 basis points to 35.7%. The company recognized about $410 million of Accession revenue, repurchased shares, and reiterated priorities of hiring, buybacks, debt reduction and selective acquisitions. Management expects second-half organic growth of 1.5%–2.5% in Retail and 2%–4% in Specialty Distribution and is pursuing AI partnerships to boost productivity and margins without materially increasing tech spend. » More on finance.yahoo.com