Arthur J. Gallagher says 2014 first-quarter net earnings were $49.3 million and reported revenues were $915 million, up from $40.5 million and $674.1 million respectively in 2013's first quarter.
Brokerage and risk-management revenues were $728.6 million, up from $608 million in last year's first quarter. Of that total, $568.6 million came from the brokerage segment.
AJG says organic growth in commissions and fee revenues grew 4% in the quarter.
On a conference call, an analyst said AJG's organic growth had "decelerated a bit" and asked if that was a sign of the market environment. AJG Chairman, President and CEO J. Patrick Gallagher said Q1 tends to be the smallest quarter sequentially for organic growth and said he does not feel like the sales process or efforts decreased in the period. He also said he is "not feeling like the market is falling out from under us."
To the contrary, earlier in the call Gallagher praised the current rate environment and said carriers in U.S. continued to show underwriting discipline. He added that he expects that to continue. He said insurers are "account underwriting"—risks that deserve decreases are getting them, while risks that need increases can expect to see that.
Gallagher also discussed the firm's recent acquisition of Wesfarmers, stating it is a "coup for our company," and adding that the deal was not an auction, but rather two firms that selected each other largely because of cultural fit.
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