Arthur J. Gallagher & Co. reported on Thursday $2.01 billion in total revenue for the second quarter, up 26.2% from the same quarter a year ago.
The brokerage reported a 23.3% increase in net income for the quarter, to $422 million.
Its core brokerage unit reported a 28.9% increase in revenue over 2021’s second quarter.
The company closed eight acquisitions during the quarter, with estimated annual revenue of $50.1 million.
“We had a fantastic second quarter and first half of 2022,” said J. Patrick Gallagher Jr., the brokerage’s chairman, president and CEO. Organic growth in base commissions and fees increased by 10.7% during the quarter.
Mr Gallagher said: “There are very real signs of hardening”; in the property reinsurance market, which is “more modest” and “a bit less challenging” on the non-life side. These will “naturally show up in primary increases,” he said.
He said the company has seen no signs of a recession so far. Clients are doing well and are still recruiting people, he said.
Gallagher said the company has learned in the past that “our customers will stop paying their employees before they stop paying their premiums, and that’s a pretty good business to be in, regardless of the economy.”