(Reuters) – Brown & Brown (NYSE:) reported higher first-quarter profit on Monday as the insurance brokerage earned more on commissions and fees and investment returns also improved.
The insurance industry has bolstered its reputation as “recession-proof” as corporate and government spending on policies is generally stable and not fluctuated by budget cuts or economic downturns.
Insurance brokers like Brown & Brown serve as a bridge between the insurer and clients, helping clients find the policy that best suits their needs.
The company’s core commissions and fees increased to $1.19 billion in the three months ended March. 31, from $1.08 billion a year earlier.
Meanwhile, higher interest rates have also helped generate investment income for insurers, who are putting some of their cash into safe-haven assets. The broader equity capital markets have also risen this year.
The company’s investment income rose to $18 million in the reported quarter from $7 million in the year-ago period.
Brown & Brown is one of the largest independent insurance brokerages in the United States, specializing in risk management. The company operates through four business segments: retail, national programs, wholesale brokerage and services.
The company’s total revenue for the quarter rose 12.7% to $1.26 billion. Adjusted earnings were $1.14 per share, compared with 96 cents a year earlier.