Organic commissions fell 2%
US-based broker Arthur J Gallagher made a net profit of $174.1m for the full year of 2010, up 35% on the $128.6m it made in 2009.
Total revenues were up 8% to $1.9bn from $1.7bn. Commissions increased 5% to $957.3m from $912.9m, fees were almost flat at $735m compared with $733.8m, and supplemental and contingent commissions were up 50% to £97.6m from £65m.
“For the year, we continued to grow and hold our margins during a period that was marked by soft rates and poor economic conditions,” said chief executive Patrick Gallagher in a statement.
Despite the increase in GAAP profit, total earnings before interest, tax, depreciation, amortisation and change in estimated acquisition earnout payables (EBITDAC) were flat at $328.1m in 2010 versus 329.1m in 2009.
The brokerage segment, the largest of Gallagher’s three divisions, saw total revenue increase to $1.34bn from $1.28bn and earnings from continuing operations grow to £135.5m from £123.7m. However, the division suffered a 2% organic decline in commissions, fees and supplemental commissions.
Gallagher closed 18 acquisitions in its brokerage segment during the year, resulting in total annualised revenues acquired of $95.1m.