Stock in leading US broker Arthur J Gallagher reached a two-year high last week after it announced an 11% improvement in its third-quarter results.

The company posted a profit of $US46.2 million ($47 million), up from $US41.6 million ($43 million) a year earlier. Revenue increased 5.4% to $US463.2 million ($475 million).

Commissions increased 6.3% as fees fell 1.7%. The firm’s brokerage revenue increased 7.8% and earnings were up 20% but revenue declined 1.9%.

CEO J Patrick Gallagher Jnr says he is “encouraged by the results”.

“In risk management, the team did an excellent job of closing the GAB Robins transaction and we are actively welcoming over 400 employees and over 200 clients to [subsidiary company] Gallagher Bassett.”