Insurance brokerage Gallagher sees 22% revenue increase in first quarter

ITASCA, Ill.—Arthur J. Gallagher & Co.'s first-quarter 2012 revenues rose to $546.8 million, an increase of 22.2% over those of the same quarter in 2011, the Itasca, Ill.-based broker reported Tuesday.

Revenues for the brokerage segment rose 21.3% over the prior-year period to $385.3 million. Within that segment, supplemental commissions grew 26.7% to $17.1 million while contingent commissions grew 13.1% to $19.0 million, Gallagher said in its earnings release.

Revenues for the company's risk management segment grew 8.2% to $141.3 million.

Gallagher's net earnings for the first quarter of 2012 jumped to $28.1 million, an 84.9% increase from those of the same period a year earlier.

“Our positive operating momentum continued in the first quarter of 2012 despite it being seasonally our smallest quarter,” said Gallagher Chairman, President and CEO J. Patrick Gallagher Jr. in the statement. He added that “we are seeing further evidence of market firming, and our customers' businesses are showing growth.”