Arthur J. Gallagher & Co. reported on Thursday $ 2.38 billion in total revenue for the first quarter of 2022, an increase of 31.6% over the same period a year earlier.
The broker reported $ 638.9 million in net profit for the quarter, an increase of 34.4% compared to the first quarter of 2021.
Its core brokerage unit reported $ 2.12 billion in revenue for the quarter, an increase of 33.3% compared to the first quarter of 2021.
The broker completed five acquisitions during the quarter, with estimated annual revenues of $ 32.2 million.
“We had a fantastic start to the year,” with more than 10% organic growth, said J. Patrick Gallagher Jr., President, President and CEO of Gallagher, in a conference call with analysts late Thursday.
Insurance companies “will continue their prudent insurance strategy, due to rising loss costs and increases and reinsurance rates,”; he said. “This comes at a time when the conflict in Ukraine is increasing geopolitical uncertainty, courts are reopening and global monetary policy is being tightened.”
It looks like insurance companies “will continue to push interest rates, and I see no dramatic change in the short term,” Gallagher said.
He said the consequences of the conflict between Ukraine and Russia have been small and accounted for about $ 5 million in revenue in the first quarter and are expected to cost another $ 5 million in revenue over the next three quarters.
He praised the success of Gallagher’s acquisition of Willis Re, the completion of which was announced five months ago. “We are not losing people, we are not losing customers. Our renewals have been fantastic,” he says.
Customers are “very clear to us that the reason the business held together over the years of discussion about where this business would land was because of the people who ran their business.
“And those people are still in place. Our losses to people outside the door are minimal to zero,” Mr. Gallagher said.