Global broker Arthur J Gallagher increased its profit by 35% to $US195 million ($186.7 million) in 2012 on strong organic growth and acquisitions.

Chairman and CEO J Patrick Gallagher says the company had a strong fourth quarter and is well positioned this year.

The company bought Australia’s largest independent Lloyd’s coverholder, SRS Underwriting, at the end of last year, and Mr Gallagher says it completed 21 acquisitions in the fourth quarter.

“As we look towards 2013, we see a rate environment that is still showing signs of firming in many lines, clients that are finding ways to grow their businesses even in these uncertain times, a strong mergers and acquisitions pipeline and an operating environment where we can control our costs and improve our productivity,” he said.

Arthur J Gallagher cut its global workforce by 3%, or 400 middle and back-office jobs, in the final quarter.

Commissions and fees increased in 2012 and revenue rose 18% to $US2.5 billion ($2.4 billion).