Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Gallagher reports revenue, profit growth in first quarter

Reprints
Gallagher reports revenue, profit growth in first quarter

Brokerage Arthur J. Gallagher & Co. reported revenue of $1.84 billion on Tuesday, an 11.6% increase over comparable figures for the same period last year.

Its main brokerage segment reported revenue of $1.2 billion for the first quarter of 2018, a 10.2% increase over comparable figures for the same period last year.

The 2017 figures were restated to reflect new accounting rules from the Financial Accounting Standards Board that affect when certain revenues are recognized in financial results.

The brokerage saw organic growth of 4.9% overall and 4.5% in the United States, said J. Patrick Gallagher Jr., chairman, president and CEO, during a conference call with analysts.

Internationally, property/casualty organic growth was up about 6%. Organic growth for Gallagher’s business in the United Kingdom increased 8%, Australia and New Zealand increased 6% and Canada was flat, he said.

U.S. property/casualty insurance pricing saw “a modest positive across many lines during the first quarter,” Mr. Gallagher said.

Property and commercial auto saw the largest increases at 3%-5%, casualty and specialty lines were up 0%-2% and workers compensation decreased 0%-1%, he said.

Property accounts that experienced catastrophe losses in 2017 have seen rate increases of 10% or more since last year and rates increases will likely continue for renewals during the remainder of 2018, Mr. Gallagher said.

“Once the balance sheets have had a chance to heal a little bit and the wind doesn’t blow, then you’ll see the rates come again,” he said.

For its risk management sector, which includes claims management unit Gallagher Bassett Services Inc., first-quarter revenue increased 9.5% over last year to $229.9 million.

Gallagher reported net earnings of $286 million, an 18.2% increase over the same period in 2017. Earnings before interest, taxes, amortization and depreciation increased 11%.

Gallagher closed six acquisitions in the first quarter of 2018 with estimated annualized revenue of $26.7 million, compared with 12 acquisitions with revenue of $62.5 million in the prior year period. The brokerage has a strong pipeline of acquisitions it is working on, Mr. Gallagher said.

 

 

 

 

 

Read Next