International broker Arthur J Gallagher says profit has risen thanks to acquisitions and higher brokerage and risk management revenues in the third quarter.

Net earnings for the nine months to September 30 were $US208.6 million ($220.66 million), up 29.1% on the corresponding period last year.

“We had another strong quarter of organic growth and margin expansion across our global operations,” Chairman and CEO Patrick Gallagher said.

Third-quarter total revenue grew 28.5% to $US835.8 million ($879.9 million).

The brokerage segment had an “outstanding” third quarter, with adjusted total revenues up 15% to $US546.3 million ($577.5 million). Base organic commission and fee revenue grew 5.5% to $US472.8 million ($499.8 million).

Arthur J Gallagher completed eight acquisitions in the third quarter, including Bollinger in the US, and announced it will buy the Giles group of companies in the UK. These two businesses could generate more than $US240 ($253.6 million) a year in revenue, Mr Gallagher says.

“We are encouraged about the state of the rate environment,” he said. “Recent discussions with carriers confirm they have deep insight into their loss costs… we believe we are in a new era of proactive and rational rate-setting by carriers, which bodes well for the brokerage industry.”