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Member, Beacon International Group, Ltd.
ITASCA, Ill.—Arthur J. Gallagher & Co. said its revenue increased but its profit declined during the first nine months of the year.
The Itasca, Ill.-based insurance brokerage's revenue from continuing operations rose 10.8% to $1.56 billion for the first three quarters of 2011 compared with the same period of 2010. A 16.4% surge in commissions and fees, which increased to $829.7 million for the first nine months, aided the rise.
But Gallagher's net income fell 13.2% to $103.6 million during the first three quarters compared with the same period last year. Gallagher said its costs were higher as it continued to integrate its acquisition of U.K. brokerage Heath Lambert Ltd., which it bought for about $158 million in May.
For the third quarter, total revenue jumped 21.5% to $562.8 million, and commissions and fees surged 22.3% to $308.0 million from the previous year.
That helped boost Gallagher's net income by 1.1%, rising to $46.7 million for the quarter.
“We continue to see some indications of market firming and so far our customers' businesses seem to be weathering the recent economic uncertainty,” Chairman, President and CEO J. Patrick Gallagher Jr. said in a statement. “Looking forward, our global team is pushing hard to deliver continued solid results for 2011, which should give us strong momentum going into 2012.”