CEO Told Analysts 275 Former Teammates Joined Startup Broker as Company Secures Injunction
Brown & Brown, CEO J. Powell Brown acknowledged that approximately $23 million in known annual revenue moved with 275 former employees who left the brokerage to join Howden US Services, LLC during the company’s fourth-quarter earnings call.
The disclosure provides the first quantified estimate of the revenue impact from the mass departures that began in mid-December and have since become the subject of active litigation in Massachusetts and elsewhere.
Brown and Brown received over 200 resignations with a matter of days in December 2025
As Agency Checklists reported earlier this year, beginning on December 18, 2025, Brown & Brown (B&B) managers across New England watched their workforces evaporate in real time. Within a matter of days, the brokerage received approximately 200 resignations from employees stationed in four specific offices, including from local officers in Dedham and Quincy, Massachusetts. All resigning employees gave no notice and accepted employment with Howden US Services, LLC (“Howden”) effective December 19, 2025.
Four days later, on December 22, 2025, Brown & Brown filed a Verified Complaint in the Suffolk Superior Court’s Business Litigation Session (BLS), Brown & Brown, Inc. et al. v. Howden US Services, LLC et al. The suit, besides naming Howden, named 28 of the resigning employees for violating their duty of loyalty while employed by B&B, and breaching their written confidentiality and non-solicitation agreements.
$23 Million in Identified Annual Revenue
Addressing the issue directly on the earnings call, Brown stated:
“As of today, approximately 275 of our former teammates have joined this startup, taking with them customers currently representing known annual revenues of $23 million.” According to Brown a small number were producers with the majority in non-production roles.
While Brown emphasized that he believed in competition, he characterized the departures as part of what he described as a coordinated effort.
“First and foremost, we believe in competition. That’s what makes great companies, great leaders, and great individuals. We also believe in integrity, honesty, loyalty, and trust. However, when a startup US broker conducts what appears to be a highly coordinated plan to lift entire teams from its competitors, taking information and customers in the process, it must be addressed.
He confirmed the company has already obtained an injunction and said:
“As we’ve done in the past, we will defend our rights in court and already have obtained an injunction.”
Nevertheless, Company Reported Strong Overall Financial Results for 2025
Even with the loss of $23 million in revenue, Brown stated that “2025 was another great year for the Brown & Brown team highlighted by the acquisition of Accession along with strong revenue growth, double-digit adjusted diluted net income per share growth and good adjusted margin expansion.”
The company also completed six acquisitions during the fourth quarter with estimated annual revenue of $29 million and earlier in the year completed the acquisition of Accession, adding more than 5,000 teammates.
For the fourth quarter ended December 31, 2025, the company also reported the following:
- Total revenues of $1.6 billion, up 35.7% year over year
- Organic revenue decrease of 2.8%, driven substantially by flood claims processing revenue recognized in the prior-year quarter
- Adjusted EBITDAC margin of 32.9%, flat compared to the prior year
- Adjusted diluted earnings per share of $0.93, up 8.1%
For the full year 2025, the company reported:
- Total revenues of $5.9 billion, up 22.8%
- Organic revenue growth of 2.8%
- Adjusted EBITDAC of $2.1 billion, up 25.6%
- Adjusted diluted earnings per share of $4.26, up 10.9%
