Arthur J. Gallagher & Co. reported on Thursday a 4.5% increase in brokerage revenues in the fourth quarter to $ 1.25 billion.
Total revenue increased by 3.8% to $ 1.46 billion. Net income increased by 47.4% to $ 214.1 million.
For the year, brokerage revenues increased by 7.3% to $ 5.17 billion. Total revenue increased 5.9% to $ 5.99 billion. Net income increased by 30.5% to $ 1.04 billion.
"We delivered an excellent quarter in the midst of a pandemic," said J. Patrick Gallagher, President, President and CEO, during the brokers' revenue call on Thursday after the markets. closed.
Globally, property / accident prices continued to "march higher during the fourth quarter", increasing by about 8% above Gallagher's footprint, with wholesale prices higher than retail.
Conditions have increased and capacity limited, especially for umbrella, cyber and public company directors and officers, Gallagher said.
Mr. Gallagher said he expects similar real estate / accident market conditions to continue in 2021
"We see a very robust new business year ahead & # 39; 21 and & # 39; 22, he said.
Mr Gallagher said the brokerage carried out ten mergers, accounting for $ 100 million of estimated annual revenue, during the fourth quarter, while a handful more, equivalent to $ 85 million in annual revenue, was completed this year, including the acquisition of the UK specialty broker The Bollington Wilson Group Ltd., which was completed in February.
There are plans on acquisitions equivalent to $ 300 million in annual revenue, he said.
Mr. Gallagher said the merger of Willis Towers Watson PLC and Aon PLC will provide many opportunities for Gallagher when it becomes one of the three largest brokers. has a very, very good position ", he said.