Organic revenues in Arthur J Gallagher’s broking division climbed by 5.9 percent in the second quarter as the company’s CEO pointed to rate increases across almost all lines.
Revenues from broking hit $1bn during the quarter, up 12 percent from last year. Meanwhile, the segment’s Ebitdac - which measures earnings before items such as interest and tax are taken into account - climbed 13 percent to hit $254.3mn.
That contributed to an Ebitdac margin of 25.6 percent in the group’s broking division.
Net earnings in its broking segment increased 55 percent to hit $127.5mn.
The group’s risk management division saw revenues climb 11 percent to $201.9mn. Of those $199.9mn were organic revenues.
Ebitdac in the division meanwhile was $35.8mn, an increase of 21 percent and delivering an Ebitdac margin of 17.7 percent.
Net earnings from the risk management segment were $17.6mn.
In a statement, the broker’s chairman, president and CEO Pat Gallagher, said: “We delivered another outstanding quarter of operating performance and are optimistic about the remainder of the year.”
“During the second quarter, we generated double digit revenue growth, organic revenue growth of 6.6 percent within our core brokerage and risk management segments, completed 12 mergers for nearly $150mn in annualized revenues, expanded margins and grew total company earnings per share,” he went on.
“Our second quarter renewal data and our mid-year internal insurance rate survey suggest P&C pricing is up in nearly all lines and most geographies.
“More than 75 percent of our survey respondents expect to see modest rate increases continue through the rest of 2018.”