Gallagher posts growing profit as company expands
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Arthur J. Gallagher & Co.'s total revenues for the first-quarter of 2016 increased 5.6% to $1.3 billion over 2015, Gallagher reported as the broker continued to reap the benefits of it aggressive expansion.
For the quarter ended March 31, revenues for Gallagher's brokerage segment increased 9.9% over the prior year's first quarter to $825.5 million, with commission revenue up 8.9% to $566 million and fees up 8.9% to $159.1 million.
Net income for the brokerage segment was up 62.3% at $61.4 million.
Gallagher reported overall net income of $57.9 million, an increase of 78.7% from the same quarter last year, Gallagher said in its earnings statement, released Thursday.
Offering innovative technologies to their clients, clean energy participation, and the completion of eight acquisitions each played a role in a successful quarter, J. Patrick Gallagher Jr., chairman, president and CEO said in a conference call with analysts Friday.
“We had an outstanding start to the year, building off last year's momentum. Our global team is energized and well positioned for 2016,” Mr. Gallagher said in a company statement.
Gallagher reported strong organic growth of 4.8%, half of which was from stronger new business and half from “less drag from rate and exposure,” Mr. Gallagher said. “This was a really strong quarter for organic growth, and we expect that to continue for the remainder of the year,” Mr. Gallagher said.
“We are a very aggressive new business company and we are all working on putting new business on the books, and we think that will continue to be strong,” Mr. Gallagher said in the conference call.
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