Arthur Gallagher & Co. reported on Thursday a 7.3% increase in brokerage revenues during the third quarter to $ 1.29 billion.
Total revenue was broadly unchanged at $ 1.8 billion. Net income increased 44% to $ 236.4 million. Compared with the increased revenue increase of 5.3% during the second quarter and a 39.5% increase in net profit.
"We delivered a very strong third quarter" despite the health crisis and the economic downturn and continued to run at the highest level, said J. Patrick Gallagher, President, President and CEO, during the broker's revenue call on Thursday after the markets closed. and conditions and increasingly limited capacity, with an increase in interest rates in the US about 8%, he said.
Real estate experienced the strongest rate hikes of about 1
The number of October indicates continued increases during the fourth quarter, Gallaher said, and the more difficult market will continue until 2021.
Mr. Gallagher said the broker completed five merger and acquisition agreements during the quarter, with more underway.
Douglas K. Howell, vice president and chief financial officer, said that future deals include two acquisitions, each with $ 25 million in revenue. Their due diligence process is almost complete, and Gallagher hopes to complete the deal by the turn of the year, Howell said.
Gallagher asked about making a major acquisition and said that there are about 30,000 companies that are not included Företagsförsäkring 's top 100 and a "good deal is still owned by baby boomers", which provides more opportunities than a major acquisition.
Mr. Gallagher also said the broker plans to continue its long-term strategy to encourage its clients to move toward self-insurance, from first-dollar coverage to higher retentions and group detainees.
"If anything, it makes it a more crucial conversation" In today's economy, he said, "When you put a buyer against the wall, they are all ears."