Brown & Brown Buys FNI Management, Boosts Service Portfolio

Brown & Brown, Inc .'s BRO subsidiary, Brown & Brown of Kentucky, Inc. has recently acquired FNI Management Group. The buyout will add capabilities to its service portfolio. The financial details of the acquisition have been still kept undisclosed.

FNI Management Group has been offering finance and insurance products, as well as training to improve dealers' financial performance in the Chicagoland market. The company generates about $1.5 million of annual revenues. The acquisition will help Brown and Brown consolidate its Midwest presence.

Post-acquisition, the acquired company will be part of the Brown & Brown auto, RV and powersports practice, and work with the Automotive Development Group team, which is led by Mike Neal, President of Brown & Brown of Kentucky, Inc.

Brown & Brown's impressive growth is driven by both organic and inorganic means across all segments. Also, strategic acquisitions and mergers help it expand its operations. The company acquired more than 470 insurance intermediary operations in more than two decades. Recently, the company acquired Vandroff Insurance Agency to enhance service offering. While this move marks the first buyout in the ongoing quarter, the company completed six acquisitions in the last reported quarter.

Shares of Brown & Brown have rallied 14.6% year to date, outperforming the industry 's growth of 6.2%. We expect the company's sustained operational performance, strategic buyouts, strong balance sheet as well as liquidity position to drive its shares higher in the near term.

Given the insurance industry's all-time high available capital resource, mergers and acquisitions are raging the insurance space. Marsh & McLennan Companies, Inc. MMC recently announced that Marsh & McLennan Agency LLC ("MMA"), the middle market agency subsidiary of Marsh, has acquired Eustis Insurance & Benefits to expand in Louisiana. Unum Group UNM has acquired Pramerica Zycie TUiR SA from a subsidiary of Prudential Financial, Inc. PRU to leverage its solid agents and brokers' network for growing its financial protection offering.

Zacks Rank

Currently, Brown & Brown carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Unum Group (UNM): Free Stock Analysis Report

Marsh & McLennan Companies, Inc. (MMC): Free Stock Analysis Report

Brown & Brown, Inc. (BRO): Free Stock Analysis Report

Prudential Financial, Inc. (PRU): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More