News Release

October 23, 2006

Cory T. Walker

Chief Financial Officer

(386) 239-7250

(Daytona Beach and Tampa, Florida) . . . Brown & Brown, Inc. (NYSE:BRO) announced net income for the third quarter of 2006 of $40,270,000, or $0.29 per share, an increase of 15.8% from the $34,783,000, or $0.25 per share, reported for the quarter ended September 30, 2005. Total revenue for the quarter ended September 30, 2006 was $211,965,000, compared with 2005 third-quarter revenue of $190,645,000, an increase of 11.2%.

Total revenue for the first nine months of 2006 was $663,354,000, compared with revenue of $588,950,000 for the comparable period in 2005, an increase of 12.6%. Net income for the first nine months of 2006 was $134,727,000, versus $114,834,000 during the comparable 2005 period, an increase of 17.3%.  Net income per share for the nine months ended September 30, 2006 was $0.96, versus the $0.82 per share posted during the same 2005 period, an increase of 17.1%.

J. Hyatt Brown, Chairman and CEO, noted, "We had another very good quarter, thanks in part to a light hurricane season so far this year and the improved operating results from our National Retail Segment.  We continue to focus on driving new business sales and providing outstanding service to our customers."

President and Chief Operating Officer Jim W. Henderson added, "We remain bullish on the prospects for acquisitions as a component of our long-term strategy for growth in earning. For 2006, we have completed 13 transactions that represent $55.5 million in annualized revenue. During the recent quarter, we announced the return of Paul Vredenburg to the Brown & Brown Team. Paul's return signals our commitment to deploy additional resources to scout an even greater number of prospective acquisition candidates and to tell the Brown & Brown story."

Brown & Brown, Inc. and its subsidiaries offer a broad range of insurance and reinsurance products and services, as well as risk management, third party administration, managed health care, and Medicare set-aside services and programs. Providing service to business, public entity, individual, trade and professional association clients nationwide, the Company is ranked by Business Insurance magazine as the United States' sixth largest independent insurance intermediary. The Company's Web address is www.bbinsurance.com. 

This press release may contain certain statements relating to future results which are forward-looking statements, including those relating to continuing our revenue, earnings and operating growth, as well as identifying and consummating attractive acquisition opportunities. These statements are not historical facts, but instead represent only the Company's current 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, financial condition and achievements may differ, possibly materially, from the anticipated results, financial condition and achievements contemplated by these forward-looking statements. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results and condition, as well as its other achievements, 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 California, Florida, Georgia, New Jersey, New York, Pennsylvania and/or Washington, where significant portions of the Company's business are concentrated; the actual costs of resolution of contingent liabilities; 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; and the cost and impact on the Company of previously disclosed litigation initiated against the Company and regulatory inquiries regarding industry and Company practices with respect to compensation received from insurance carriers. All forward-looking statements made herein are made only as of the date of this release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware. 

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For the

For the

Three Months Ended

Nine Months Ended

September 30

September 30

2006 

2005  

2006   

2005   

REVENUES

Commissions and fees

$208,558

$188,444

$653,900

$581,497

Investment income

3,218

1,786

8,383

4,275

Other income, net

        189

        415

         1,071

     3,178

    Total revenues

  211,965

  190,645

  663,354

  588,950

EXPENSES

Employee compensation and benefits

100,821

94,009

304,731

278,493

Non-cash stock-based compensation

837

681

4,601

2,360

Other operating expenses

29,502

25,638

90,605

78,760

Amortization

9,089

8,452

27,067

24,344

Depreciation

2,922

2,538

8,302

7,432

Interest

     3,229

     3,638

      10,080

      10,891

     Total expenses

  146,400

  134,956

  445,386

  402,280

Income before income taxes

65,565

55,689

217,968

186,670

Income taxes

   25,295

   20,906

   83,241

  71,836

     Net income

$ 40,270

$ 34,783

$134,727

$114,834

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Net income per share:

  Basic

$0.29

$0.25

$0.97

$0.83

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====

  Diluted

$0.29

$0.25

$0.96

$0.82

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Weighted average number of shares outstanding:

  Basic

139,668

138,484

139,522

138,374

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  Diluted

141,027

139,638

140,949

139,504

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Dividends declared per share

$0.05

$0.04

$0.15

$0.12

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Quarter

Quarter

Total

Total

Less

Internal

Ended

Ended

Net

Net

Acquisition

Net

    9/30/06

9/30/05

Change

Growth %

Revenues

Growth %

Florida Retail

$  44,083

$   38,146  

  $   5,937 

     15.6%

$        109

    15.3%

National Retail

52,874

    48,555

4,319 

         8.9%

      3,896

      0.9%

Western Retail

     26,896

     26,848

          48

      0.2%

     1,269

    (4.5)%

     Total Retail

    123,853

    113,549

    10,304 

        9.1%

        5,274

     4.4%

Professional Programs

10,806

10,820

(14)

    (0.1)%

       -

    (0.1)%

Special Programs

     26,626

     22,080

   4,546

     20.6%

      2,376

      9.8%

     Total Programs

     37,432

     32,900

   4,532

      13.8%

      2,376

    6.6%

Wholesale Brokerage

36,017

31,990

4,027

     12.6%

      2,238

        5.6%

Services

       9,164

       6,821

   2,343

     34.3%

     1,608

10.8%

Total Core Commissions

    and Fees ⁽¹⁾

$206,466

$185,260

$21,206

    11.4%

$11,496

  5.2%

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⁽¹⁾

Total core commissions and fees are our total commissions and fees less (i) profit-sharing 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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