US broker Arthur J. Gallagher has achieved strong earnings growth for the third quarter, supported by robust property and casualty (P&C) rates and an economic rebound from the pandemic downturn.

Company net earnings, as adjusted, increased to $US294.8 million ($392 million) in the three months to September from $US226 million ($300 million) a year earlier and adjusted revenues before reimbursements grew to $US2.1 billion ($2.8 billion) from $US1.8 billion ($2.4 billion).

The brokerage business improved its adjusted net earnings to $US280.6 million ($373.5 million) from $US238.9 million ($318 million), and the risk management arm to $US25.9 million ($34.5 million) from $US19.3 million ($25.7 million).

“We delivered an excellent third quarter,” Chairman, President and CEO Patrick Gallagher said. “Our core brokerage and risk management segments combined to post 17% growth in revenue, of which 10% was organic revenue growth.

“Global P&C rates remain firm and improved economic activity is leading to additional insured exposure units, positive policy endorsements, and other favourable mid-term policy adjustments.”

He says the business is on track to close its acquisition of Willis Towers Watson’s treaty reinsurance brokerage operations in the fourth quarter this year.