NU Online News Service, July 27, 12:19 p.m.EDT

Arthur J. Gallagher & Co. pointed to positive signs ofgrowth, saying organic growth was up more than 2 percent andearnings increased in both its brokerage and risk managementsegments.

The Itasca, Ill.-based insurance broker reported second quarternet income decreased 3 percent, or $1.2 million, to $46.8million.

Revenues rose 19 percent, or $85 million, to $544 million.

For the first six months of the year, says net income is down 6percent, or $4 million, to $65 million. Earnings per share dropped8 cents to 58 cents a share. Revenues rose 7 percent, or $64million to $990 million.

J. Patrick Gallagher Jr., chairman, president and chiefexecutive officer, speaking to financial analysts during aconference call, was upbeat about the company's performance, citingpositive results in organic growth.

“I'm extremely pleased with our second quarter. The results, Ithink, were terrific. The team really came through in the quarter,”Gallagher says.

Organic commissions and fee revenue in the brokerage segment usup more than 2 percent. In the risk management segment organic feesrose close to 6 percent. Combined organic growth was up close to 4percent.

“Everywhere I look around our enterprise, our numbers areimproving. Most of our businesses across the globe contributed tothe quarter,” says Gallagher. “I think these results show that thestrategy we have to grow our company is working.”

Discussing the insurance marketplace, he says there are signs ofincreases across the board, but some accounts still remainextremely competitive. Good accounts will still see reductions, butthose reductions are not as large as they were in the past and notautomatic, he adds.

AJG closed 13 acquistions during the first 6 months of thisyear adding a total of $211 million in annualized revenue. Nine ofthe acquisitions were during the second quater of this yearadding $184 million in revenue on an annualized basis.

With the acquisition of Heath Lambert, Gallagher says the firmwill be looking at bolt-on acquisitions in the same manger as ithas in the United States. He says now is a great opportunity forthis strategy, as baby boomers age and seek ways to take economicadvantage of the businesses they have spent a lifetimebuilding.

Outside of the United States, United Kingdom and Australia,Gallagher says other areas of acquisition opportunities the firm islooking at is Central and South America.

This story was updated with a correction in paragraph 10reflecting the correct number of acquisitions for the first sixmonths of 2011.