Arthur J Gallagher says its Australian and New Zealand businesses achieved organic growth of more than 4% in the second quarter, as prices improved.

Chairman and CEO J Patrick Gallagher told a results briefing that pricing in the two countries has turned higher by 4-5%.

“We got rate improvement in New Zealand and Australia, those businesses are doing very well,” he says in a transcript from Seeking Alpha.

Arthur J Gallagher’s overall net profit grew to $US171.9 million ($217.2 million) in the three months to June 30 from $US150 million ($189.5 million) in the corresponding quarter last year.

Revenues gained 9% to $US1.56 billion ($1.98 billion).

“During the second quarter, we posted outstanding organic revenue growth, completed nine tuck-in brokerage mergers, expanded margins and grew earnings per share,” Mr Gallagher says.

Globally, first-half renewals and a mid-year internal insurance rate survey suggest property and casualty pricing is mostly stable.

“Almost two-thirds of our survey respondents expect no significant change in [this year’s] pricing environment,” Mr Gallagher says.

Brokerage division revenues increased 6% to $US998.1 million ($1.26 billion) in the second quarter and were also up 6% to $US1.88 billion ($2.37 billion) in the first half.