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Member, Beacon International Group, Ltd.
Arthur J. Gallagher & Co. reported revenue of $630.4 million for the fourth quarter of 2012 on Tuesday, a 14.3% increase over what the Itasca, Ill.-based firm reported in the same period the previous year.
The company, ranked the third-largest broker of U.S. business in Business Insurance’s 2012 rankings, reported that brokerage revenue for the quarter rose 17.6% in to $486.6 million, while revenue from its risk management unit rose 4.6% to $143.8 million. Net earnings for the quarter were $31.5 million, essentially unchanged from the same period a year ago.
On a yearly basis, revenues for fiscal 2012 were $2.39 billion, a 14.9% increase over previous year, and net earnings were $155.8 million, an 11.1% gain over the previous year.
“We had a strong finish to 2012 and we are well positioned for continued success in 2013,” Chairman, President and CEO J. Patrick Gallagher Jr. said in a statement. “In the fourth quarter, our combined brokerage and risk management segments posted 14% growth in adjusted total revenues, 4.6% organic growth in base commission and fee revenues, 17% growth in adjusted EBITDAC and adjusted EBITDAC margins improved by 50 basis points.”
In addition to organic growth, Mr. Gallagher said the company would continue to pursue mergers and acquisitions to augment the company’s core brokerage and risk management operations.
“As we look towards 2013, we see a rate environment that is still showing signs of firming in many lines, clients that are finding ways to grow their businesses even in these uncertain times, a strong M&A pipeline, and an operating environment where we can control our costs and improve our productivity,” he said.
Arthur J. Gallagher & Co.’s total revenue grew 14.9% to $1.76 billion for nine months ending Sept. 30.