Arthur J. Gallagher & Co. reported double-digit revenue increases in both of its major business segments in the first quarter of 2024 as insurance rates continued to increase across most lines and it added more revenue through acquisitions.

Average rate hikes for middle-market accounts appeared to rise more than for large account business in the quarter, the brokerage’s top executives said on a call with analysts Thursday.

Meanwhile, while Gallagher opposes the Federal Trade Commission’s recently announced ban on noncompetes, the executives said the move likely won’t affect its ability to acquire companies or hire and retain staff.

Gallagher reported $3.26 billion in revenue for the quarter, a 20.3% increase over the same period last year. On an organic basis, which excludes the effect of mergers and acquisitions and foreign currency fluctuations, revenue rose 9.4%, Gallagher said.

In its core brokerage business, Gallagher reported $2.86 billion in revenue, up 20.6%, and for its risk management segment, which includes its third-party administration unit Gallagher Bassett Insurance Services Inc., it reported $391.4 million in revenue, up 18.3%.

The company closed 12 acquisitions in the first quarter, which represented a total of $69.2 million in annualized revenue. Gallagher was the most acquisitive publicly traded brokerage in the period.

Gallagher reported net earnings of $612.7 million for the quarter, a 25.9% increase over the 2023 period.

Global primary renewal premiums, which includes rate and exposure changes, were up about 7% in the quarter, said J. Patrick Gallagher Jr., chairman and CEO.

Property premiums increased about 10%, umbrella was up 9%, general liability up 7%, package policies up 8% and workers compensation up 2%, he said.

Two exceptions to the increases were directors and officers liability insurance, where premiums were down about 5%, and cyber liability, where premiums were flat, Mr. Gallagher said.

“These two lines appear close to be reaching a pricing bottom but combined represent around 5% of our P/C business globally,” he said.

Reinsurance pricing in the quarter was stable with increased demand for property catastrophe coverage, Mr. Gallagher said.

Rates and exposure values are increasing more for middle and small accounts than for large account business, said Douglas K. Howell, chief financial officer.

“If you go back a year or so ago, it might have been just the opposite,” he said.

Meanwhile, answering questions on the FTC’s noncompete ban, Mr. Gallagher noted that if the rule, which faces legal challenges, goes into force, there is a carveout for noncompete agreements as part of business sales.

In addition, Gallagher’s contracts with production staff contain nonsolicitation agreements rather than noncompetes.

“We think those are going to remain enforceable,” he said.