Arthur J. Gallagher & Co. on Thursday reported $2.01 billion in total revenue for the second quarter, a 26.2% increase over the comparable quarter a year ago.
The broker reported a 23.3% increase in net income for the quarter, to $422 million.
Its core brokerage unit reported a 28.9% increase in revenues compared with 2021’s second quarter.
The company closed eight acquisitions in the quarter, with estimated annualized revenues of $50.1 million.
“We had a fantastic second quarter and first half of 2022,” said J. Patrick Gallagher Jr., the brokerage’s chairman, president and CEO. Organic growth in base commissions and fees increased 10.7% in the quarter.
Mr. Gallagher said, “There are very real signs of hardening” in the property reinsurance market, which are “more modest” and a “little bit less challenging” on the casualty side. These will “naturally show up in primary rate increases,” he said.
He said the company has not seen signs of a recession so far. Clients are doing well and still recruiting people, he said.
Mr. Gallagher said the company has learned in the past that “our clients will stop paying their people before they stop paying their premiums, and that’s a pretty good business to be in, regardless of the economy.”