Re/insurance broker Arthur J. Gallagher & Co. has reported fourth quarter net earnings of $153.1 million, up from $105.6 million in the prior year quarter.
The company’s brokerage segment also saw a rise during the final quarter of 2020, reaching $157.7 million against $118.7 million.
For the full year, Gallagher’s reported net earnings rose to $858.1 million against the $715.8 million posted in 2019.
“We delivered another excellent quarter, and a fantastic full year during which we generated record profits,” said J. Patrick Gallagher, Jr., Chairman, President and CEO.
“Despite the pandemic and the resulting economic fall out, we executed on our long-term operating priorities: growing both organically and through acquisitions, improving both our productivity and quality, and still investing in our bedrock culture.”
Customer retention is reported to have remained at pre-pandemic levels within Gallagher’s property/casualty brokerage operations during the fourth quarter 2020, while new business generation was above pre-pandemic levels.
Premium rates across most geographies and lines of coverage are said to have continued to increase, effectively mitigating exposure unit declines, and net positive mid-term policy modifications were slightly higher than fourth quarter 2019.
“We are operating in a property casualty environment where rates are up around 8% globally, terms and conditions are tightening, and capacity in certain lines is increasingly constrained,” Gallagher added.
“We see these market conditions continuing in 2021. In addition, we are seeing increased business activity, a recovering labor market, and a rebound in new arising risk management claims.
“An environment of rising rates and growing exposure units provides a near-perfect opportunity for us to demonstrate that we provide the very best insurance, consulting and risk management advice for our clients.”