Gallagher's first-quarter profits rise

ITASCA, Ill.--Arthur J. Gallagher & Co. reported double-digit revenue and profit growth for the first quarter of 2007.

Gross revenues were up 18.5% to $388.2 million in the quarter, with total commission and fee revenues increasing 10% to $345.3 million, the Itasca, Ill.-based brokerage said Tuesday. Profits were up 15.8% to $19.8 million.

In a statement Chairman, President and Chief Executive Officer J. Patrick Gallagher Jr. said that while he was "pleased" with the 16% margins posted within Gallagher's risk management segment and that its employee benefits unit posted "excellent" revenue growth and expanding margins, he's "not pleased" with the 1.5% "slippage" in its brokerage segment's margins.

"Domestic P&C brokerage revenues and margins saw pressure from the ever-softening market, and we continue to experience margin dilution from building out our global reinsurance brokerage unit," he said.