Brown and Brown 3Q15 Earnings Call Notes

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Overall market conditions improving, but questions on outlook due to news about companies cutting costs. We’ve seen some slight impact.

“we continue to see the overall market conditions improve in certain areas of the country, which is good. However, there are some questions regarding potential outlook due to the recent news about companies reducing their workforces and cutting costs. We’ve seen some slight impact already and will continue to monitor our customer base closely.”

Lack of hurricane drives rates down

“2015 appears to be another year without a major hurricane hitting the United States. This lack of weather events along with excess capital in the market continues to drive rates down.”

Low interest rates also putting pressure on insurance rates

“We do expect rates to remain under pressure due to historically low weather events and low interest rates. We feel the realignment of our Retail Division strategically positions us for incremental profitable organic growth in future quarters.’

When you hire someone right out of college, you are teaching them about life

“let’s make sure we’re clear on that. Everybody’s development is different. When you hire somebody right out of college, you are teaching them not only insurance, but about life. And so it takes several years for them to get into the production mode, but they’re being very successful in adding value to our team and learning the business in other ways, but they may not be a producer right away.”

Different people have different trajectories of success

“It’s not as easy as saying, we hire somebody and one year later you have X. It’s not that easy. And I know you’d like that, there’d be more like manufacturing, but it’s not like that. You hire a new person and some people are successful more quickly, some people, it takes a little longer for them to launch in their career. But we can tell you that we’re looking for a certain type of person and that person, when we find them has a high probability of success in our system over a long period time, if they continue to do all the desired outputs and actions that make us a producer successful.”