Organic revenue growth of 7% in Australia and New Zealand contributed to a stellar second quarter for global broker Gallagher.
Chairman, President and CEO Patrick Gallagher told an earnings conference call his team “delivered on all measures”, with organic revenue growth of 6.6% for the combined brokerage and risk management segments.
Net earnings were up 59% on the corresponding period last year to $US123.7 million ($167.04 million).
Gallagher says rate increases occurred in most countries. In Australia property rates were up 8-9% and casualty and specialty lines were up 4-6% on average.
“We delivered another outstanding quarter of operating performance and are optimistic about the remainder of the year,” Mr Gallagher said.
“During the second quarter we generated double-digit revenue growth, organic revenue growth of 6.6% within our core brokerage and risk management segments, completed 12 mergers for nearly $US150 million ($202.56 million) in annualised revenue, expanded margins and grew total company earnings per share.
“Our second-quarter renewal data and our mid-year internal insurance rate survey suggest [property and casualty] pricing is up in nearly all lines and most geographies.
“More than 75% of our survey respondents expect to see modest rate increases continue through the rest of [this year].”