AJG posts 12% increase in brokerage revenues
Arthur J Gallagher & Co (AJG) has reported a 12 percent increase in adjusted total revenues for its brokerage segment for the first quarter of 2016, up to $823.3 million.
4.8 percent of this revenue increase was organic growth.
The firm’s earnings before income tax depreciation (EBITDAC) increased 16 percent in the quarter also and AJG improved its adjusted EBITDAC margin by 79 basis points.
AJG’s risk management segment also had a strong quarter, with total organic revenues increasing by 4.7 percent and adjusted EBITDAC increasing by 9 percent.
“We had an outstanding start to the year, building off last year’s momentum. Our global team is energised and well-positioned for 2016,” said J Patrick Gallagher, Jr, chairman, president and chief executive officer.
He added: “The current domestic rate environment is rational and we are seeing some early signs of cycle-bottoming in select geographies outside the US. We believe the property and casualty (P/C) insurance marketplace is favourable for our clients and is allowing our producers to demonstrate our expertise and value-added service.
“Integration of our larger deals remains on track and should be largely complete by year end and our bolt-on merger strategy continues to add value for shareholders.
