May 1 (Reuters) – Arthur J. Gallagher reported a rise in first-quarter profits on Thursday as insurance brokers benefited from higher fees and commissions due to strong insurance spending from clients.
The insurance broker acts as an intermediary for clients and insurance companies, guiding the latter to choose the best plan for their requirements. Unlike insurance companies, they do not sell policies directly.
Spending on insurance policies remains strong this quarter, helping insurers make profits. This translates into higher fees and commissions for brokers like Arthur J. Gallagher.
“Our core brokerage and risk management departments provide 14% revenue growth, including 9% organic revenue growth,” CEO J. Patrick Gallagher Jr. said in a statement.
The company reported net profit of $816.1 million, or $3.13 per share, for the three months ended March 31. By comparison, that profit was $652.6 million or $2.92 per share in the same period last year.
According to reports, the company's commissions and fees were $2.87 billion, up from $2.6 billion last year.
The company's stock rose nearly 12% in 2025, up slightly in trading after the bell.
Brown & Brown, another insurance brokerage firm, also reported quarterly profits increased earlier this week due to increased commissions and fees.
Arthur J. Gallagher, known for his Tuck-In acquisition, struck a $1.2 billion deal in March to acquire rival Woodruff Sawyer, the latest move to expand his business.
(Reported by Pritam Biswas in Bangalore; Editor of Alan Barona)
