First Take 2Q26 Earnings: Entering the Heart of a Soft Market

研报英文原文证据摘录

First Take 2Q26 Earnings: Entering the Heart of a Soft Market

Update

July 27, 2026 09:33 PM GMT

Morgan Stanley & Co. LLCMBrown & Brown Inc. | North America Bob Jian Huang

Equity Analyst

First Take 2Q26 Earnings: Bob.Huang@morganstanley.comSiddhant Shah +1 212 761-6136

Research Associate

Sid.Shah@morganstanley.com +1 212 761-2603

Entering the Heart of a Soft Daniel Lee, ACAS

Daniel.Lee4@morganstanley.com +1 212 761-0219

Market

Brown & Brown Inc. (BRO.N, BRO US)

Insurance - Property & Casualty | United States of

AlphaSignals Earnings Reaction America

Unchanged In-line Largely unchanged Stock Rating Underweight

Impact to our thesis Financial results versus consensus Direction of next 12-month Industry View Attractive

consensus EPS Price target $55.00

Shr price, close (Jul 27, 2026) $69.70

Source: Company data, Morgan Stanley Research Mkt cap, curr (mm) $23,773

52-Week Range $104.20-53.82

Navigating tougher part of a soft market: Organic growth stayed weak this quarter

in a soft property insurance market. With limited catastrophe losses, the current

pricing cycle should last longer, pressuring organic growth for some time. That said,

we expect improvement in 2H26 as the company laps tougher compares and faces

easier non-property renewals. Weakness concentrated in Specialty, where pricing/

demand sensitivity is likely higher. From an earnings perspective, EBITDAC margin

stayed strong, largely supported by Retail. Given steady margins, the investment

thesis should focus on how long the broader environment remains a growth

headwind for Brown & Brown. While valuation has improved YTD, the organic

growth trend will be the more critical share driver, in our view.

What We Liked

• Retail adj. EBITDAC margin: Retail adj. EBITDAC margin of 29.8% beat