Arthur J Gallagher's quarterly profit rises on fees, commission growth
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Arthur J Gallagher logo is seen in this illustration taken November 10, 2024. REUTERS/Dado Ruvic/Illustration
Jan 29 (Reuters) - Arthur J. Gallagher posted 24.5% rise in fourth-quarter adjusted profit on Thursday, as the insurance broker benefited from stronger commissions and fees amid solid demand.
Insurance spending has proved resilient as businesses and individuals prioritize coverage against financial risks, natural disasters, and other losses, even as they rein in spending elsewhere.
Arthur J. Gallagher's commissions rose to $2.06 billion in the quarter from $1.50 billion in the prior year. Total fees climbed nearly 34.8% to $1.2 billion.
Insurance brokerages act as intermediaries between clients and insurers, guiding customers in selecting policies that best match their needs, instead of selling plans directly. Brokers generate revenue through commissions based on premiums, tying their performance closely to the insurance industry numbers.
Peer Brown and Brown on Monday reported higher quarterly adjusted profit, helped by rise in commissions and fees. But its organic revenue fell 2.8%.
The company reported adjusted net profit of $620 million, or $2.38 per share, for the three months ended December 31, compared with $498 million, or $2.16 per share, in the same period a year earlier.
(Reporting by Pragyan Kalita in Bengaluru; Editing by Leroy Leo)
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