AI and Insurance: Is Brown & Brown (BRO) Facing Extinction or Evolution?

Orbis Investment Management's Q2 2026 investor letter highlights Brown & Brown, Inc. (NYSE:BRO) as a notable insurance brokerage firm, which operates through Retail and Specialty Distribution segments. The letter reveals the firm's top five holdings, but does not provide further details on these holdings. In the letter, Orbis Global Equity Strategy discusses Brown & Brown's market performance and its exposure to artificial intelligence (AI) investments.

The strategy categorizes AI investments into four groups: Core (direct exposure), Enablers (supporting businesses), AI Powered (companies enhanced by AI), and Overlooked (mispriced resilient companies). Brown & Brown is listed in the Overlooked category due to the market's perception of it as an AI casualty. The letter argues that while AI may automate certain insurance types, it is not a significant portion of Brown & Brown's business.

The company's commercial and specialty insurance segment relies on the broker's expertise and judgment, making it a people business. Orbis Global Equity Strategy suggests that Brown & Brown has a lower downside risk compared to other AI stocks and may provide greater upside potential.