TSC Ratings' Updates: Brown & Brown

The following ratings changes were generated on September 19.

Brown & Brown(BRO Quote) has been upgraded from hold to buy. Brown & Brown, together with its subsidiaries, operates as a diversified insurance agency, wholesale brokerage, and service organization in the U.S. It operates in four segments: retail, national programs, wholesale brokerage and services. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Net operating cash flow has significantly increased by 154.76% to $116.91 million when compared with the same quarter last year. In addition, BRO has also vastly surpassed the industry average cash flow growth rate of -41.61%. ...