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Arthur J. Gallagher & Co. on Thursday reported a 13.1% revenue increase, to $1.13 billion, for the second quarter ended June 30.
Net earnings increased 8.2% to $138 million.
In the first quarter, revenues increased 8.3% and net earnings increased 23% from the comparable period.
Gallagher completed 13 brokerage acquisitions in the second quarter, which represented $195 million in estimated annualized revenue, J. Patrick Gallagher, chairman, president and CEO, said during the broker’s earnings call Thursday.
Mr. Gallagher said rates were increasing, but not to the point of being a hard market. Almost 75% of Gallagher producers indicated that rates increased about 5% during the quarter, and 15% said they were seeing rates of more than 10%, he said.
But a 5% increase is not a hard market, he said.
“We must go back to 2001 to see what a hard market looks like,” he said. “I’m pleased we have a bit of a tailwind, but I would not get extra bullish on the rate environment.”
Most policyholders “are looking at how, how do I get this thing back to flat, and that’s the kind of marching orders we are being given,” Mr. Gallagher said.
In some cases, brokers are recommending their clients stay with the same insurer, but there are other situations where the market is very competitive, “and part of the job of the broker is to shop the account for you,” he said.
Arthur J. Gallagher & Co. reported 2018 second-quarter revenue of $1.66 billion on Thursday, up 11.5% from a year ago.