Brown & Brown: A Conservative And Stable Play On Insurance

Nov. 26, 2022 12:15 AM ETBrown & Brown, Inc. (BRO)

Summary

  • Brown & Brown may not be everyone's idea of an exciting insurance or financial investment. Indeed, with a sub-1% yield and some valuation premiums, there are questions.
  • However, there are few more stable upsides in the insurance industry - and if you moderate your expectations for income, you may want this as a safety play.
  • I look at Brown & Brown - and say at what valuation I would be buying the company's common shares.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT on Alpha. Learn More »

Mature couple with insurance agent at home

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Dear readers/followers,

I invest frequently in insurance companies and related businesses and have been doing so since I started investing in the stock market. While I don't currently own stock in Brown & Brown (NYSE:BRO), it's

BRO IR

BRO IR (BRO IR)

BRO IR

BRO IR (BRO IR)

BRO IR

BRO IR (BRO IR)

BRO valuation

BRO valuation (BRO valuation)

BRO Premium upside

BRO Premium upside (F.A.S.T graphs)

QRThe company discussed in this article is only one potential investment in the sector. Members of iREIT on Alpha get access to investment ideas with upsides that I view as significantly higher/better than this one. Consider subscribing and learning more here.

This article was written by

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Mid-thirties DGI investor/senior analyst in private portfolio management for a select number of clients in Sweden. Invests in USA, Canada, Germany, Scandinavia, France, UK, BeNeLux. My aim is to only buy undervalued/fairly valued stocks and to be an authority on value investments as well as related topics.

I am a contributor for iREIT on Alpha as well as Dividend Kings here on Seeking Alpha and work as a Senior Research Analyst for Wide Moat Research LLC.

Disclosure: I/we have a beneficial long position in the shares of MMC, AON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved.

I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about.

Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.

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