Property-and-casualty insurance brokers were given a continued “stable” outlook from Fitch Ratings, as revenue and earnings growth in 2012 is forecast to match or exceed levels recorded during the first nine months of 2011.

In a five-page report reviewing five publicly traded national insurance-brokerage firms, Fitch says that despite premium gains aiding top-line growth, brokers’ revenues are expected to be “modest due to a flat rate environment” in the commercial-insurance market.

In the rating service’s review of insurance brokers Aon, Arthur J. Gallagher (AJG), Brown & Brown, Marsh & McLennan (MMC) and Willis, average operating income increased for the group to just over $600 million in the first nine months of 2011—from slightly less than $600 million during the same period in 2010.

The increase, Fitch says, was primarily on the strength of higher earnings at MMC and at Aon from its acquisition of Hewitt Associates.

Willis’ results were negatively affected by debt-repurchase expenses and its 2011 operational review, which led to a $130 million charge.

For AJG and Brown & Brown, operating income was essentially unchanged.

Acquisition activity increased, Fitch says, with the number of transactions through October 2011 equaling all of 2010 and surpassing all of 2009.

“Fitch expects overall revenue growth to continue to be driven by mergers and acquisitions, as a ready supply of smaller firms can provide a source of new revenue for larger firms,” says Fitch.

A pending change in the capital-gains tax rate for 2013 could compel agencies to do more deals next year, Fitch adds.

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Fitch: Brokers&rsquo; Earnings Expected to Remain Stable

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Fitch: Brokers’ Earnings Expected to Remain Stable