Brokerage, risk management revenues up for Arthur J. Gallagher

Arthur J. Gallagher & Co. released Tuesday its financial results for the quarter ending Sept. 30, recording a 26.9% increase in revenue year over year.

During the latest quarter, the Itasca, Ill.-based insurance brokerage and risk management firm recorded revenues of $835.8 million. During the same period in 2012, revenues were $650.4 million. All figures are in U.S. currency.

Adjusted third-quarter brokerage revenues were up 15% year-over-year, from $476.8 million in 2012 to $546.3 million this year.

Q3 net earnings increased, from $61.7 million in 2012 to $74.6 million this year.

Last August, Gallagher completed its acquisition of Bollinger Inc., a brokerage with more than 500 employees in eight offices in New Jersey, New York, Pennsylvania and Connecticut.

In Canada, Gallagher has offices in Toronto, Montreal, Winnipeg, Calgary and Edmonton. Services in Canada include surety bonds, business interruption, auto, general liability, professional liability, hazardous materials, safety compliance, marine cargo and cyber risk.

Brokerage and risk management revenues were $696 million for the three months ending Sept. 30, up 13% from $617.1 during the quarter ending Sept. 30, 2012. Risk management fees during the latest quarter were $149.5 million (up from $141.4 million in Q3 2012) while brokerage commissions were $399.1 million in Q3 2013, compared to $346 million in Q3 2012.

Gallagher has operations in 20 countries.

“In September, we announced the signing of an agreement to acquire the Giles Group of Companies headquartered in London, England, which is the fifth largest independent retail insurance broker in the United Kingdom with over 1,100 employees operating out of 43 offices in England, Scotland, Wales, Northern Ireland, Isle of Man and the Channel Islands,” the company noted in its earnings release Oct. 29. “Together, these two market-leading organizations could annually generate over $240 million in revenues.”