Broker boosted revenues 10.2%
Insurance and reinsurance broker Arthur J Gallagher made a net profit of £73.2m in the first half of 2010, 4% up on the $70.2m it made in last year’s first half. Profits for the second quarter alone were almost flat at $44m versus $43.8m in the same period of 2009.
The first half profit rise came on the back of a 10.2% increase in revenues to $941.9m from $854.7m. Second quarter revenues increased slightly to $459.5m from $453.6m.
Fees fell in both the first half and the second quarter, by 2.6% and 4% respectively. However, commissions rose 3% in the first half and 2.9% in the second quarter, and supplemental and contingent commissions grew by 51.8% and 63.6% in the first half and second quarter respectively. First half revenues were also boosted by $65.1m in revenues from clean coal activities.
“We continue to operate in one of the most difficult economic environments in Gallagher’s history,” said J Patrick Gallagher Jr, chairman, president and CEO of Arthur J Gallagher. “Client exposures are declining in this economy and the insurance marketplace softened even further in the quarter. Even in this environment, we are providing great guidance and service to our clients around the world and we remain focused on growing our company.”