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Arthur J. Gallagher quarterly revenue up 51% over 2013

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Arthur J. Gallagher & Co. reported on Tuesday that this year’s second-quarter revenue rose 51.2% over the same period a year ago to $1.18 billion, driven in large part by its risk management and brokerage segment and clean energy segment.

Net earnings for the second quarter of 2014 rose 16.7% over that of the same period in 2013 to $109 million, the insurance broker said Tuesday.

For the first six months of 2014, revenue rose 44.1% year over year to $2.09 billion, while net income rose 9.8% to $153.4 million.

“Our second quarter was one for the record books,” said J. Patrick Gallagher Jr., chairman, president and CEO, in a statement. “Closing 17 acquisitions in the quarter, including Oval in April, Crombie/OAMPS in June, followed by Noraxis on July 2, plus doing a secondary offering in April and a debt raise in June, were feats unto themselves, yet our team also delivered on all other measures. Our combined brokerage and risk management segments posted 28% growth in adjusted revenues, of which 4.4% was total organic growth.”

“Based on our recent internal survey, for P&C accounts renewing in the second quarter, we saw 35% of our customers renewing at higher rates, 30% renewing about flat, and 35% getting decreases,” Mr. Gallagher said. “Given this quarter’s mix of renewals, decreases in commissions from lower property rates were partially offset by increases in commissions from higher casualty rates. This is still a very good environment for our production team.”

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