Arthur J Gallagher reports drop in Q3 earnings
The US-based insurance broker reported net earnings at $130.4 million for the third quarter of 2016, below the $140.9 million reported in the same period a year ago.
Net earnings for Arthur J Gallagher’s (AJG) corporate segment dropped to $19.5 million from $51.6 million over the period.
The earnings in the brokerage segment, however, increased substantially in the third quarter of 2016, although its risk management segment faced slight decreases.
AJG's net earnings for its brokerage segment for the three-month period ending September 30 were $97.7 million, a 29 percent increase compared to the same period in 2015.
The net earnings for its risk management segment in the third quarter were $13.2 million, a 4 percent decrease year-over-year.
Arthur J Gallagher's reported GAAP revenues for its brokerage segment in the third quarter of $877.6 million, a 5 percent increase year-over-year.
The revenues for the risk management segment for the three-month period ending September 30 was $176.7 million, a decrease of 1 percent year-over-year.
"My recent meetings with dozens of insurance carriers, and our own internal data suggests the domestic insurance market remains stable," said J Patrick Gallagher Jr, chairman, president and CEO.
"This is a market where expertise and value-added service should drive growth. Around the world, we are successfully executing our strategies - we are growing organically, expanding through M&A, making strides in productivity and quality and our culture is thriving. We are well positioned for a strong finish to 2016 and for another excellent year in 2017."
