Gallagher achieved organic revenue growth of 2% in Australia and New Zealand combined in the September quarter.

The New Zealand result was “slightly stronger than Australia,” Chairman, President and CEO Pat Gallagher told analysts during a conference call. Property & casualty (P&C) rate increases in the two countries were around 3% versus a year ago, compared with 8% in the US.

“New business is down a touch in Australia and up in New Zealand,” Mr Gallagher says. “Rate increases there are positive but not enough to offset exposure decline.”

Worldwide, Gallagher’s net earnings were $US255.6 million ($358.77 million) in the third quarter, up from $US182.9 million ($256.72 million) a year earlier. Increases in P&C rates have helped cushion declines in renewals caused by the business fallout from the COVID-19 pandemic.

“We delivered another very strong quarter,” Mr Gallagher said. “Our combined brokerage and risk management revenues grew in the third quarter - both organically and through M&A.”

Mr Gallagher predicts the group’s revenue will grow 2-3% in the fourth quarter and 3% for the full year.

“It is certainly a more difficult market today than last quarter and we are seeing some pockets of hard lines in certain markets and geographies. I see that continuing into 2021.”

Third quarter P&C rates increased nearly 7% globally, which mostly offset exposure declines.

Mr Gallagher says full policy cancellations have remained similar to pre-pandemic levels.