Arthur J. Gallagher & Co. has reported its results for the second-quarter of 2019, posting solid revenue growth and improved net earnings in its brokerage segment.
Revenues increased from $1 billion in Q2 2018 to $1.13 billion in Q2 2019, while organic revenues also increased year-on-year, to $1.01 billion. The firm’s net earnings jumped by 8% in Q2 2019 when compared with the same period in 2018, to $138 million.
The company’s risk management segment also recorded improved revenues in Q2 2019 of $209 million, compared with $199 million a year earlier. Organic revenues also increased here, to $205 million from the $199 million recorded a year earlier. However, net earnings did decline in the segment by 12%, totalling $15.5 million.
J. Patrick Gallagher, Jr., Chairman, President and Chief Executive Officer (CEO) of Arthur J. Gallagher, commented: “We delivered another outstanding quarter of operating performance and are excited about the remainder of 2019. During the second quarter, we posted excellent total revenue growth, terrific organic revenue growth, strong margins and we completed 13 brokerage mergers with $195 million of annualized revenue.
“Our mid-year internal insurance rate survey suggests global P&C price increases are approaching 5%. Further, around half of our surveyed producers see rates moving higher in the second half of 2019. This is when we excel; our talented production staff is fully engaged helping clients and prospects navigate the challenges of an increasing rate environment.”
For the first-half of the year, the brokerage segment recorded increased revenues of $2.5 billion and organic revenues of $2.23 billion, which is also up on the first-half of 2018. Net earnings for the six-month period jumped from $366.7 million to $447.5 million in Q2 2019.
In risk management, revenues increased to $412 million in the first-half of the year and organic revenues increased from $391 million to $405 million. However, as was the case in Q2, net earnings did decline in the risk management segment for the first-half of the year, from $33.5 million in 2018 to $31.7 million in H1 2019.