Arthur J. Gallagher & Co. reported that its second-quarter profit jumped 30 percent on the combination of new business and strong retention.
The Itasca, Ill.-based insurance broker this week said its revenue grew 20 percent to $779.5 million. Revenues for the quarter increased 20 percent. For the first six months of this year, net income is up 34 percent to $134 million. Revenues during the period increased 21 percent to $257 million.
President and CEO J. Patrick Gallagher Jr. attributed the company’s strong earnings to strong organic growth in its brokerage and risk management business segments.
“We had another strong quarter of organic growth and margin expansion across our global operations,” J. Patrick Gallagher, Jr., Chairman, President and CEO, said in a statement. “In the second quarter, our combined brokerage and risk management segments posted 15 percent growth in adjusted total revenues (and) 7 percent organic growth in commission and fee revenues.”
The brokerage giant has been a strong player in the mergers and acquisitions field. Through June, Gallagher has acquired nine agencies for a total of $41 million in annualized revenue.