Arthur J. Gallagher reports $1.29B in third quarter revenue

Arthur J. Gallagher & Co. reported on Tuesday that its third-quarter revenue rose 53.9% over the same period a year ago to $1.29 billion, driven in large part by its ongoing acquisitions and a healthy rating environment.

Profits for the third quarter of 2014 rose 25.4% over the same period in 2013 to $93.6 million, the Itasca, Illinois-based insurance broker said Tuesday.

“We had an excellent quarter on all measures,” Arthur J. Gallagher & Co. Chairman, President and CEO J. Patrick Gallagher, Jr. said in a statement. “The integration of our larger mergers continues as planned and on schedule, and we are continuing our proven strategy of smaller tuck-in mergers.”

For the first nine months of 2014, revenue rose 47.7% year over year to $3.38 billion, while profits rose 20.8% to $251.9 million.

Mr. Gallagher cited a “healthy and sustainable environment for our customers, the brokers and the carriers” as the reason for the company's performance. “In the rating environment, we continue to see evidence that insurance pricing is rational, and we are not seeing evidence of the carriers having any appetite for large rate swings seen in the past,” he said in the statement.

Arthur J. Gallagher & Co. is the third largest broker of U.S. business according to Business Insurance's latest ranking.