Brokerage and risk management firm Arthur J. Gallagher & Co. released Tuesday its financial results for 2012, reporting net earnings of $195 million on revenues of $2.52 billion, up from net earnings of $144.1 million on revenues of $2.13 billion in 2011. All figures are in U.S. currency.
"During the fourth quarter, we took actions to contract our global workforce by approximately 3%, or 400 middle-office and back-office positions," the Itasca, Ill.-based firm stated in a press release. "These actions reflect our investments in productivity initiatives and improved technology utilization."
Gallagher has operations in 18 countries including Canada, where it has offices in Toronto, Montreal, Winnipeg, Calgary and Edmonton. In Canada, Gallagher provides brokerage and risk management services in a variety of areas, including surety bonds, business interruption, auto, general liability, professional liability, hazardous materials, safety compliance, marine cargo and cyber risk.
For the company as a whole, it broke down its financial data by its brokerage and risk management units.
Revenue for the brokerage segment was $489.1 million during the fourth quarter of 2012, up from $413.4 million during the same period in 2011. Its revenues in risk management were $144.8 million in the fourth quarter of 2012, down from $145.7 million in the fourth quarter of 2011. For the full year, risk management fees were $571.7 million in 2012 and $548.8 million in 2011.
"Excluding the New Zealand earthquake claim-settling unit, which has wrapped up operations, adjusted total revenues were up 5% (and) base organic fees were up 2.9% ..." the firm stated in its press release.
For the company as a whole, it reported net earnings of $33.5 million on revenues of $673.2 in the fourth quarter of 2012, compared to net earnings of $40.5 million on revenues of 578.4 million in the last quarter of 2011.
In 2012, its revenues include $121 million for the full year from coal-fired power plants.
"Gallagher has investments in limited liability companies that own 29 clean coal production plants which produce refined coal using proprietary technologies owned by Chem-Mod," the firm stated in a press release. Gallagher owns part of Chem-Mod, which provides an injection process for coal-fired power plants.
According to presentation material from an April, 2012 conference call, the Chem-Mod mixture heats up in boilers and reacts with mercury, nitrogen oxides and sulfur dioxide.
“As it cools, a chemical bonding occurs and captures the mercury, etc. and becomes part of the ash rather than released into the air.”