Gallagher results ride high on mergers and acquisitions
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Mergers and acquisitions continue to be a key growth strategy for Arthur J. Gallagher & Co., said J. Patrick Gallagher, chairman, president and CEO during the brokerage's results call with analysts Wednesday.
For the quarter ended Sept. 31, Gallagher reported $1.45 billion in revenues, a 13.1% increase from the same period last year. It reported a 42.4% increase in net earnings to $133.3 million from $93.6 million.
For the nine-month period, the Itasca, Illinois-based brokerage reported a 20% increase in revenues to $4.06 billion from the same period last year. Its net earnings increased 16.9%, to $294.5 million.
“I'm very pleased with our quarter,” said Mr. Gallagher. Discussing the company's merger and acquisition activity, he said the company has completed five mergers, all in its brokerage segment, during the third quarter.
In the first nine months of the year, it has made nearly 30 acquisitions, representing $180 million in new revenue, “and our pipeline remains very strong,” Mr. Gallagher said.
Mr. Gallagher said with the exception of large, property exposed business, “Rates are very much flat, and in line with what we saw in the second quarter.”
