July 31, 2017 by Canadian Underwriter
Arthur J. Gallagher & Co. (AJG) has reported Brokerage revenues of US$998.1 million for the second quarter of 2017, up from US$997 million in the same quarter last year.
Net earnings for the Brokerage segment for the quarter ending June 30 were US$139.5 million, up from US$114.9 million in Q2 2016, Rolling Meadows, Ill.-based AJG said in a press release last week. The company’s Risk Management segment saw revenues of US$188.7 million in the most recent quarter, up from US$176.5 million in Q2 2016.
For the first six months of the year, Brokerage revenues were US$1.88 billion compared to US$1.76 billion in the first half of 2016. Brokerage segment net earnings were US$217.6 million for H1 2017, up from US$180.8 billion in H1 2016.
The Risk Management segment saw revenues of US$371.3 for the first six months of the year compared to US$355.8 in H1 2016. Net earnings for the segment were US$28.7 million in H1 2017, down slightly from US$28.9 million in H1 2017 (Q2 2017: US$14.4 million compared to US$13.9 million in Q2 2016).
“We delivered another excellent quarter of operating performance and are optimistic about the remainder of the year,” said J. Patrick Gallagher, Jr., chairman, president and CEO of AJG, adding that the company completed nine tuck-in brokerage mergers during the second quarter. “Our first half renewals, as well as our mid-year internal insurance rate survey, suggest P&C pricing is mostly stable,” he said, noting that almost two-third of survey respondents expected no significant change in the 2017 pricing environment.
Brokerage segment commissions and fees as reported for the second quarter of 2017 were US$912.6 million, up from US$861.7 million in Q2 2016, the release said. For the first half of the year, commissions and fees were US$1.69 billion, up from US$1.59 billion in H1 2016.
For the Corporate segment, revenues from consolidated clean coal facilities were US$366.3 million in Q2 2017, up from US$301.5 million in Q2 2016. For H1 2017, revenues from consolidated clean coal facilities were US$706.6 million, up from US$583.5 million in H1 2016.
AJG is an international insurance brokerage and risk management services firm with operations in 33 countries. It also offers client-service capabilities in more than 150 countries through a network of correspondent brokers and consultants.