Arthur J. Gallagher's (AJG) chief executive says the new federalhealth-care law is providing excellent opportunity for thebrokerage—and other big producers—as smaller benefit brokersstruggle with the statute's various compliance issues.

J. Patrick Gallagher, AJG'spresident and CEO, said during the company's Q1-results conferencecall on May 2 that the Patient Protection and Affordable Care Act,of which he has been a critic, is so complex that larger brokeragesare benefiting from it because they possess the staff and knowledgeto navigate clients through the compliance process.

By comparison, most smaller benefit brokers do not have theresources to adequately educate clients in the law's intricacies,he said, driving business toward larger brokers like AJG.

As new clients continue to seek brokers capable of aiding them,“I've never seen such a selling environment. That business is onfire and continues to be,” said Gallagher.

The Itasca, Ill.-based broker reports an 84 percent increase inits first-quarter net profit, beating analysts' earnings-per-shareestimates by 1 cent on an adjusted basis. First-quarter net incomewas $28 million, up $13 million from the same period last year.

Reported revenues rose 22 percent, or more than $99 million, to$547 million.

The firm also registered organic growth of close to 5percent.

The results were helped by a P&C environment in which pricesare continuing to increase but not enough to indicate a true hardmarket, said Gallagher.

Carriers are asking for rate increases, especially on Workers'Comp and property business—and they are getting it, he added.

“This couldn't be a better environment for us,” he said. “Ifthis environment stays like this for the next few years, it willbenefit us.”

Clients, Gallagher noted, are beginning to spend more. “Theybelieve the worst is behind them,” he said, adding that he hopes“hiring can't be too far off.”

In Q1 2012 the firm acquired 12 agencies, bringing in more than$30 million in revenue—compared to only four acquisitions in Q42011.