Gallagher Q2 results boosted by brokerage
US-based broker Arthur J Gallagher has increased revenues and reported a jump in earnings in its brokerage business and in the group earnings.
Adjusted organic revenues in the brokerage segment grew 5.9 percent year on year to $938.6 million in the second quarter of 2018.
Reported net earnings in the segment were up 55 percent year on year at $127.5 million.
Overall, the group’s net earnings grew to $123.7 million in the second quarter of 2018 from $78.3 million in the same period a year ago. At the same time, revenues before reimbursements expanded to $1.63 billion from $1.45 billion over the period.
“We delivered another outstanding quarter of operating performance and are optimistic about the remainder of the year,” said CEO J. Patrick Gallagher, Jr.
“During the second quarter, we generated double-digit revenue growth, organic revenue growth of 6.6 percent within our core brokerage and risk management segments, completed 12 mergers for nearly $150 million in annualized revenues, expanded margins and grew total company earnings per share,” said J. Patrick Gallagher, Jr., Chairman, President and CEO.
“Our second quarter renewal data and our mid-year internal insurance rate survey suggest P&C pricing is up in nearly all lines and most geographies.
More than 75 percent of our survey respondents expect to see modest rate increases continue through the rest of 2018. Modest rate increases, combined with global exposure unit growth, continues to be a favourable back drop for our talented production team to outperform,” Gallagher, Jr. added.
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