May 1, 2017 by Canadian Underwriter
Arthur J. Gallagher & Co. (AJG) has reported brokerage revenues of US$878.5 million for the first quarter of 2017 ending March 31, up 6% from US$825.5 million in the first quarter of 2016.
Rolling Meadows, Ill.-based AJG reported its financial results last week.
The company’s Brokerage segment saw net earnings of US$78.1 million, up 19% from US$65.9 million in Q1 2016. AJG’s Risk Management segment posted revenues of US$182.6 million, up 2% from US$179.3 million, while net earnings for the segment dropped 5% to US$14.3 million from US$15 million in Q1 2016.
“We had an excellent start to 2017,” said J. Patrick Gallagher, Jr., chairman, president and CEO of AJG, in a statement. “Coming off a terrific 2016, we delivered solid organic growth, outstanding revenue growth from our tuck-in M&A strategy and strong margin expansion in the first quarter. Our global businesses are working well together, the team is energized and we are successfully executing our strategies. We are well positioned for the remainder of 2017.”
Commissions for the Brokerage segment were US$590.5 million in Q1 2017, compared to US$566 million in Q1 2016, while fees for the segment were US$188 million compared to US$159.1 million in Q1 2016. Fees for the Risk Management segment were US$182.5 million compared to US$179.1 million in the first quarter of 2016.
For the Corporate segment, revenues from consolidated clean coal facilities were US$340.3 million, up from US$282 million in the first quarter last year. The cost of revenues from consolidated clean coal facilities were US$366.9 million in the most recent quarter, up from US$304.4 million in Q1 2016. The segment saw a net loss of US$24.6 million in the most recent quarter compared to a net loss of US$23 million in the first quarter of 2016, the statement noted.
In addition, for the first quarter of 2017, AJG closed 12 acquisitions with estimated annualized revenues acquired of US$62.5 million, compared to eight acquisitions worth US$30 million in the first quarter of 2016.
AJG is an international brokerage and risk management services firm, with operations in 33 countries, including Canada.