NU Online News Service, April 30, 10:08 a.m. EDT
Arthur J. Gallagher & Co., reversing a $6 million loss for the period in 2008, reported first quarter net income of $26.4 million, helped by a strategy of acquisitions and cost cutting.
The Itasca, Ill.-based brokerage reported 2009 first quarter revenues of $289.5 million, a 12 percent increase from $258 million in last year's first quarter.
Organic revenues declined 1.4 percent in the quarter, from $230.7 million in 2008′s first quarter to $227.4 million in 2009. Revenues from acquisitions over the last 12 months totaled $38 million.
Revenues for the risk management segment declined 3 percent, from $116.2 million in the first quarter of 2008 to $112.2 million in 2009.
Total revenues for the company were $401.1 million for the quarter, up from 2008 first quarter revenues of $375.8 million.
In a conference call, J. Patrick Gallagher Jr., chairman, president and CEO, said he was happy with the quarterly results given the economic conditions. "I think that this does affirm the strategies that we've put in place," he said.
He acknowledged the tough economic environment, but said he is optimistic about the company and the industry as a whole. People still need insurance and advice, he said.
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